Exam 19: An Introduction to Accounting for State and Local Governmental Units

Centralized data processing, central motor pools and garages, centralized risk-financing activities, and central stores typically would be accounted for using what type of fund?

The following are transactions for the city of Clinton. a. Borrowed $100,000 by issuing a one-year, 5% note, three months before year-end. b. Accrued interest at year end, but did not pay the interest at year end. c. Charges for services rendered of $2,500 were billed and collected immediately. d. Incurred salary costs of $5,000, unpaid. Required: Analyze the above transactions by using the accounting equation for a proprietary fund.

For each of the following events or transactions, identify the fund or funds that will be affected. 1. A city government charges a fee for the use of the municipal golf course. 2. Interest is paid on state government revenue bonds. 3. A motor pool was established to handle the vehicle needs of a county government. 4. Paid salaries for general governmental employees. 5. Accrued salaries for general governmental employees.

The following are transactions for the city of Greenville. a. Issued $50,000 10-year bonds. b. Used $30,000 of the cash to buy a truck. c. Sold the truck that was replaced which had cost $28,000, for $2,000. The old truck was fully depreciated. Residual value is zero. d. Computed depreciation on the new truck for the year of $6,000. Required: Analyze the above transactions by using the accounting equation for a governmental fund.

What basis of accounting is used to prepare Government-wide financial statements?

The key focus of government fund accounting concerns

Because a fund is an accounting entity, each fund has I. its own accounting equation. II) its own journals, ledgers, and other accounting records. III) its own separate auditor.

Which type of fund is used to account for a government activity that sells goods or services either solely or almost solely to external customers?

Which pronouncements have the highest level of authority for state and local governments?

For each of the following events or transactions, identify the fund or funds that will be affected. 1. A city government provides electricity services to residents for a fee. 2. A printing shop was established to handle the printing needs of a county government. 3. A philanthropist donates $1 million for zoo maintenance, only earnings can be used. 4. A city government collects sales taxes on behalf of the state and for some of its counties and municipalities. 5. Interest is paid on a state government's general obligation bonds.

Approved or authorized expenditures that provide legislative control over the expenditure budget are referred to as

Internal Service Funds differ from Enterprise Funds because Internal Service Funds

The following are transactions for the city of Clinton. a. Borrowed $100,000 by issuing a one-year, 5% note, three months before year-end. b. Accrued interest at year end, but did not pay the interest at year end. c. Charges for services rendered of $2,500 were billed and collected immediately. d. Incurred salary costs of $5,000, unpaid. Required: Analyze the above transactions by using the accounting equation for a governmental fund.

Which fund would most likely report depreciation expense?

Using the revenue types shown below, match each of the revenue sources to a revenue type. Each revenue type may be used more than once.

Identify the fund type of the fund being described. 1. A fund used to account for the external portion of investment pools reported by the sponsoring government. 2. A fund used to account for resources that are legally restricted to use of the earnings only for government programs or activities. 3. A fund used to account for resources used to pay for a new stadium. 4. A fund used to account for local taxes withheld on behalf of another county. 5. A fund used to account for resources used to pay interest on a long-term bond issue. 6. A fund used to account for specific revenues that are restricted in use. 7. A fund used to account for the local swimming pool that is owned by the city and used by residents for a membership fee. 8. A fund used to account for the centralized data processing services of the state government. 9. A fund used to account for all funds except those required to be accounted for in another fund. 10. A fund that accounts for government pension plans if the government is the trustee

Governmental accounting differs from corporate financial accounting primarily because

Match the following definitions to the appropriate government accounting terms (numbered below).