Exam 11: Accounting for State and Local Governments, part I

How do the balance sheet and statement of revenues,expenditures,and changes in fund balances of governmental funds differ from the financial statement presentation for the governmental activities in the government-wide statement of net assets and statement of activities? (1)Internal service funds are not included in the fund financial statements of governmental funds but could be reported in the governmental activities of government-wide financial statements. (2)The economic resources measurement basis is used for fund financial statements of governmental funds and the current financial resources measurement basis is used for governmental activities in the government-wide financial statements. (3)Modified accrual accounting is used for fund financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government-wide financial statements. (4)The financial statements of governmental funds for fund financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.

What are the four fiduciary fund types?

Which of the following would be considered a derived tax revenue?

A $910,000 bond was issued on October 1,2018 to build a new road.The bonds carried a 6% interest rate and are due in 10 years. Required: (A. )Prepare the required journal entry in the capital projects fund on October 1 for the governmental fund financial statements. (B. )Prepare the required journal entry for the government-wide financial statements.

The school system had some brochures printed by a local printing service on September 22,2018.The school system received an invoice showing an amount of $1,560 for the printing,but the bill is not due until October 15,2018. Required: (A)Prepare the required journal entry in the general fund for the governmental fund financial statements. (B)Prepare the required journal entry for the government-wide financial statements.

When a city holds pension monies for city employees,the monies should be recorded in

What is the purpose of government-wide financial statements?

The Town of Anthrop has recorded the receipt of a $60,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2018.The town now spends $60,000 to transport the citizens on Election Day. Required: Prepare the journal entry (or entries),and identify the fund for recording,to record that the town spends $60,000 of the grant it received to transport senior citizens on Election Day.

For governmental entities,the accrual basis of accounting is used for:

A city operates a central data processing facility.The expenses of this facility would be accounted for using

The government has just voted to repair the parking garages to all federal building and estimate the cost to be $750,000.The government discloses this decision by debiting which account?

Which of the following is a governmental fund?

For determining revenue recognition,eligibility requirements for government-mandated nonexchange transactions and voluntary nonexchange transactions are categorized into four general classifications including all of the following except:

The City of Kamen collected $17,000 from parking meters that must be transferred to the county government in the next thirty days. Required: For fund financial statements,prepare the journal entry for the collection of the $17,000 from parking meters,including the fund type in which the entry would have been recorded.

Which statement most accurately reflects property taxes?

Under modified accrual accounting,revenues should be recognized when they are

In governmental accounting,what term is used for a decrease in financial resources?

On January 1,2018,Wakefield City purchased office supplies for $40,000.During the year,$35,000 of these supplies were used. Required: Record the journal entries for these transactions using the purchases method.(Disregard the encumbrance entries. )

When a city collects admission fees from citizens who use the public swimming pool,the money should be recorded in

A county enacted a special tax levy and the money must be used to buy unused farmland for environmental preservation.What kind of fund should be used to record the revenues generated by the tax?