Question 1

What is the highest level of authoritative rules for state and local government accounting?

Accepted Answer

A) Technical Bulletins 
B) Implementation Guides 
C) Official Statements of GASB 
D) Interpretations no longer in effect 
E) Financial Accounting Standards 
A) Technical Bulletins 
B) Implementation Guides 
C) Official Statements of GASB 
D) Interpretations no longer in effect 
E) Financial Accounting Standards

Question 2

Use the following to answer questions 
The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance,and a $52,000 Fund Balance.
The following information relates to the activities within the Town of Portsmouth for the year of 2018.
  
-Prepare a Statement of Revenues,Expenditures and Other Changes in Fund Balances for the year ended December 31,2018.

Accepted Answer

The answer of Use the following to answer questions 
The...

Question 3

For the purpose of government-wide financial statements,the cost of cleaning up a government-owned landfill and closing the landfill

Accepted Answer

A) Is not recognized until the costs are actually incurred. 
B) Is accrued and amortized over the expected useful life of the landfill. 
C) Is accrued on a pro-rated basis each period based on how full the landfill is. 
D) Is accrued in full at the time the costs become estimable. 
E) Is treated as an encumbrance at the time it become estimable,and then as an expenditure when it is actually paid. 
A) Is not recognized until the costs are actually incurred. 
B) Is accrued and amortized over the expected useful life of the landfill. 
C) Is accrued on a pro-rated basis each period based on how full the landfill is. 
D) Is accrued in full at the time the costs become estimable. 
E) Is treated as an encumbrance at the time it become estimable,and then as an expenditure when it is actually paid.

Question 4

A local government's basic financial statements would include a statement of cash flows for all

Accepted Answer

A) proprietary fund types. 
B) governmental fund types. 
C) fund types. 
D) fiduciary fund types. 
E) A statement of cash flows is not required for any fund types. 
A) proprietary fund types. 
B) governmental fund types. 
C) fund types. 
D) fiduciary fund types. 
E) A statement of cash flows is not required for any fund types.

Question 5

The City of Kamen maintains a collection of paintings of a former citizen in its City Hall building.  During the year, one painting was purchased by the city for $2,000 at an auction using appropriated funds in the General Fund.  Also during the year, a donation of a painting valued at $3,000 was made to the city.
-Prepare the journal entry/entries for the two transactions for the purposes of preparing the governmental fund financial statements.

Accepted Answer

No entry in General Fund for s

Question 6

The city operates a public swimming pool where each person is assessed a $2 entrance fee.Which financial statement is most appropriate to report these revenues?

Accepted Answer

A) Statement of Net Position. 
B) Statement of Revenue,Expenditures,and Other Changes in Fund Balance. 
C) Statement of Revenue,Expenses,and Other Changes in Fund Balance. 
D) Statement of Net Revenue and Expenses. 
E) Statement of Revenue,Expenses,and Other Changes in Net Position. 
A) Statement of Net Position. 
B) Statement of Revenue,Expenditures,and Other Changes in Fund Balance. 
C) Statement of Revenue,Expenses,and Other Changes in Fund Balance. 
D) Statement of Net Revenue and Expenses. 
E) Statement of Revenue,Expenses,and Other Changes in Net Position.

Question 7

What information is required in the financial section of a state or local government's CAFR?

Accepted Answer

The financial section of a CAFR must inc

Question 8

The City of Wetteville has a fiscal year ending June 30.  Examine the following transactions for Wetteville:
 (A.) On 6/5/18, Wetteville opens a new landfill.  The engineers estimate that at the end of 10 years the landfill will be full.  Estimated costs to close the landfill are currently $3,500,000.
(B.) On 6/18/18, Wetteville receives a donation of a vintage railroad steam engine.  The engine will be put on display at the local town park.  A fee will be charged to actually climb up into the engine.  The engine has been valued at $500,000. 
 (C.) On 6/30/18, Wetteville estimates that the landfill is 2% filled.

-Determine and prepare the journal entries for the City of Wetteville,in the general fund,on the dates mentioned for each lettered item,for the purposes of preparing the fund financial statements.

Accepted Answer

Entries for general fund for preparing f

Question 9

A city starts a solid waste landfill during 2017. When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed.  At the end of 2017, the facility was 20% full, and at the end of 2018 the facility was 45% full.   
-If the landfill is judged to be a governmental fund,what liability is reported on the fund financial statements at the end of 2018?

Accepted Answer

A) $ 0. 
B) $300,000. 
C) $375,000. 
D) $600,000. 
E) $675,000. 
A) $ 0. 
B) $300,000. 
C) $375,000. 
D) $600,000. 
E) $675,000.

Question 10

The parking garage and parking lots owned by the City of Danton reported the following balances for 2018:
 $$\begin{array} { l r } 
\text { Receipts from public users of the parking facilities } & \$ 190,000 \
\text { Receipts from the city for parking of city-owned vehicles } & 8,000 \
\text { Salaries paid to employees } & 75,000 \
\text { Printing - paid to an internal service fund } & 6,000 \
\text { Interest on bonded debt } & 10,000 \
\text { Sculpture for entrance to parking lot (donated during 2018) } & 12,500 \
\text { Depreciation on parking garage } & 30,000 \
\text { Truck (purchased during 2018) } & 35,000 \
\text { Maintenance - paid to an internal service find } & 17,000
\end{array}$$  
Required:
Prepare the appropriate financial statement for the fund that was used to account for parking operations.

Accepted Answer

Danton's change in net position from the

Question 11

What are the three broad sections of a state or local government's CAFR?

Accepted Answer

The introductory sec

Question 12

Which statement is false regarding the government-wide Statement of Net Position?

Accepted Answer

A) Noncurrent liabilities are presented separately from current liabilities. 
B) Assets are reported excluding capital assets. 
C) Capital assets are reported net of depreciation. 
D) Investments are reported at fair value rather than historical cost. 
E) Discretely presented component units are grouped and shown on the right of the total. 
A) Noncurrent liabilities are presented separately from current liabilities. 
B) Assets are reported excluding capital assets. 
C) Capital assets are reported net of depreciation. 
D) Investments are reported at fair value rather than historical cost. 
E) Discretely presented component units are grouped and shown on the right of the total.

Question 13

According to the GASB (Governmental Accounting Standards Board),which one of the following is not a criterion for determining whether a government is legally separate?

Accepted Answer

A) The government can determine its own budget. 
B) The government can issue bonded debt. 
C) The government has corporate powers including the right to sue and be sued. 
D) The government has the power to levy taxes. 
E) The government can issue preferred stock. 
A) The government can determine its own budget. 
B) The government can issue bonded debt. 
C) The government has corporate powers including the right to sue and be sued. 
D) The government has the power to levy taxes. 
E) The government can issue preferred stock.

Question 14

Over the years,four alternatives have been suggested for constructing the financial statements for public colleges and universities.These alternatives include all of the following except:

Accepted Answer

A) Adopt FASB's requirements so that all colleges and universities (public and private)prepare comparable financial statements. 
B) Apply a more traditional model focusing on fund financial statements and the wide variety of funds that such schools often have to maintain. 
C) Create an entirely new set of financial statements designed specifically to meet the unique needs of public colleges and universities. 
D) Adopt the requirements issued by the Private Company Council (PC
C) of the FASB. 
E) Adopt the same reporting model for public schools that has been created for state and local governments. 
A) Adopt FASB's requirements so that all colleges and universities (public and private)prepare comparable financial statements. 
B) Apply a more traditional model focusing on fund financial statements and the wide variety of funds that such schools often have to maintain. 
C) Create an entirely new set of financial statements designed specifically to meet the unique needs of public colleges and universities. 
D) Adopt the requirements issued by the Private Company Council (PC
C) of the FASB. 
E) Adopt the same reporting model for public schools that has been created for state and local governments.

Question 15

The Town of Wakefield opened a solid waste landfill in 2017 that was at 20% capacity on December 31, 2017 and at 50% capacity on December 31, 2018. The city initially anticipated closure costs of $2.3 million but in 2018 revised the estimate of the closure costs to be $2.7 million. None of these costs will be incurred until the landfill is scheduled to be closed.
-Prepare the journal entry that should be recorded on December 31,2018 for government-wide financial statements.
.

Accepted Answer

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Question 16

Which of the following is not a step in reporting a pension liability?

Accepted Answer

A) The pension benefit payments that will ultimately be required are estimated by an actuary. 
B) The portion of those payments that are attributable to past periods of employee service is calculated. 
C) The present value of amounts attributable to past periods of employee service is determined in order to arrive at the government's obligation at the present time. 
D) Excess liability balance is shown in the government-wide financial statements as a net pension asset. 
E) Excess liability balance is shown in the government-wide financial statements as a net pension liability. 
A) The pension benefit payments that will ultimately be required are estimated by an actuary. 
B) The portion of those payments that are attributable to past periods of employee service is calculated. 
C) The present value of amounts attributable to past periods of employee service is determined in order to arrive at the government's obligation at the present time. 
D) Excess liability balance is shown in the government-wide financial statements as a net pension asset. 
E) Excess liability balance is shown in the government-wide financial statements as a net pension liability.

Question 17

Use the following to answer questions 
The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance,and a $52,000 Fund Balance.
The following information relates to the activities within the Town of Portsmouth for the year of 2018.
  
-Prepare a Statement of Activities for the year ended December 31,2018.

Accepted Answer

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\hline \

Question 18

What three criteria must be met before a governmental unit can elect to not capitalize and therefore report a work of art or historical treasure as an asset?

Accepted Answer

Before a governmental unit can elect to

Question 19

Drye Township has received a donation of a rare painting worth $1,000,000.For Drye's government-wide financial statements,three criteria must be met before Drye can opt not to recognize the painting as an asset.Which of the following is not one of the three criteria?
(1) )The painting is held for public exhibition,education,or research in furtherance of public service,rather than financial gain.
(2) )The painting is scheduled to be sold immediately at auction.
(3) )The painting is protected,kept unencumbered,cared for,and preserved.

Accepted Answer

A) Item 1 is not one of the three criteria. 
B) Item 2 is not one of the three criteria. 
C) Item 3 is not one of the three criteria. 
D) All three items are required criteria. 
E) None of the three items are required criteria. 
A) Item 1 is not one of the three criteria. 
B) Item 2 is not one of the three criteria. 
C) Item 3 is not one of the three criteria. 
D) All three items are required criteria. 
E) None of the three items are required criteria.

Question 20

Which statement is false regarding the Statement of Revenues,Expenditures,and Other Changes in Fund Balance when it is included with government-wide financial statements?

Accepted Answer

A) The Statement of Revenues,Expenditures,and Other Changes in Fund Balance uses the modified accrual method of accounting. 
B) The Statement of Revenues,Expenditures,and Changes in Fund Balance presents revenues as either program revenues or general revenues. 
C) A presentation reconciles the change in governmental fund balance to the change in net position for governmental activities. 
D) Other financing sources are presented on the Statement of Revenues,Expenditures,and Other Changes in Fund Balance. 
E) All non-major funds are combined and reported together. 
A) The Statement of Revenues,Expenditures,and Other Changes in Fund Balance uses the modified accrual method of accounting. 
B) The Statement of Revenues,Expenditures,and Changes in Fund Balance presents revenues as either program revenues or general revenues. 
C) A presentation reconciles the change in governmental fund balance to the change in net position for governmental activities. 
D) Other financing sources are presented on the Statement of Revenues,Expenditures,and Other Changes in Fund Balance. 
E) All non-major funds are combined and reported together.

What is the highest level of authoritative rules for state and local government accounting?

For the purpose of government-wide financial statements,the cost of cleaning up a government-owned landfill and closing the landfill

A local government's basic financial statements would include a statement of cash flows for all

The city operates a public swimming pool where each person is assessed a $2 entrance fee.Which financial statement is most appropriate to report these revenues?

What information is required in the financial section of a state or local government's CAFR?

What are the three broad sections of a state or local government's CAFR?

Which statement is false regarding the government-wide Statement of Net Position?

According to the GASB (Governmental Accounting Standards Board),which one of the following is not a criterion for determining whether a government is legally separate?

Over the years,four alternatives have been suggested for constructing the financial statements for public colleges and universities.These alternatives include all of the following except:

Which of the following is not a step in reporting a pension liability?

What three criteria must be met before a governmental unit can elect to not capitalize and therefore report a work of art or historical treasure as an asset?

Which statement is false regarding the Statement of Revenues,Expenditures,and Other Changes in Fund Balance when it is included with government-wide financial statements?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, part I

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Exam 12: Accounting for State and Local Governments, part II

What is the highest level of authoritative rules for state and local government accounting?

For the purpose of government-wide financial statements,the cost of cleaning up a government-owned landfill and closing the landfill

A local government's basic financial statements would include a statement of cash flows for all

The city operates a public swimming pool where each person is assessed a $2 entrance fee.Which financial statement is most appropriate to report these revenues?

What information is required in the financial section of a state or local government's CAFR?

What are the three broad sections of a state or local government's CAFR?

Which statement is false regarding the government-wide Statement of Net Position?

According to the GASB (Governmental Accounting Standards Board),which one of the following is not a criterion for determining whether a government is legally separate?

Over the years,four alternatives have been suggested for constructing the financial statements for public colleges and universities.These alternatives include all of the following except:

Which of the following is not a step in reporting a pension liability?

What three criteria must be met before a governmental unit can elect to not capitalize and therefore report a work of art or historical treasure as an asset?

Which statement is false regarding the Statement of Revenues,Expenditures,and Other Changes in Fund Balance when it is included with government-wide financial statements?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, part I

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