Exam 17: Governmental Entities: Introduction and General Fund Accounting

The general fund of the Town of Dean levied property taxes of $3,000,000 for the fiscal year beginning on January 1,20X8.It was estimated that 1% of the levy would be uncollectible.During the period January 1,20X8,through December 31,20X8,$2,960,000 of the property tax levy was collected.At December 31,20X8,Dean estimated that $10,000 of property taxes levied in 20X8 would be collected during the first 60 days of 20X9.What amount of property tax revenue should be reported by the general fund for the year ended December 31,20X8?

The City of Ames uses the consumption method to report its inventory of supplies on its general fund balance sheet.What account is debited in the general fund when Ames acquires supplies?

Which of the following statements is (are)correct about the funds used by governmental entities?

The general fund of the City of Columbia transferred money to establish an internal service fund for the city's data processing needs.The general fund of Columbia should account for this transaction as a(n):

GASB 34 established four types of interfund activities.Interfund activities are recognized as revenue in a governmental fund for an:

Which of the following funds should use the accrual basis of accounting?

The following related entries were recorded in sequence in the general fund of a municipality: The sequence of entries indicates that

Which of the following observations concerning interfund transfers is true?

The Town of Pasco has no supplies inventory in its general fund on January 1,20X8.During 20X8,Pasco incurred expenditures of $200,000 for the acquisition of supplies.On December 31,20X8,Pasco's inventory of supplies amounted to $30,000.Assume Pasco uses the purchase method of accounting for supplies in its general fund and that the village reports on the calendar year.On December 31,20X8,the general fund of Pasco should credit:

Which of the following funds provides goods and services only to other departments or agencies of the government on a cost-reimbursement basis?

Works of art and historical treasures purchased by the general fund should be reported as:

Accounting processes differ between a for-profit entity and a governmental entity.Discuss three differences between a governmental entity and a for-profit entity.

Which of the following describes how a governmental fund (e.g.general fund)accounts for a capital lease?

Which of the following funds should use the modified accrual basis of accounting?

Goshen City acquires $36,000 of inventory on November 1, 20X5, having held no inventory previously. On December 31, 20X5, the end of Goshen City's fiscal year, a physical count shows $7,000 still in stock. During 20X6, $5,000 of this inventory is used, resulting in a $2,000 remaining balance of supplies on December 31, 20X6. -Based on the preceding information,which of the following would be the correct account balances for 20X6 if Goshen City used the consumption method of accounting for inventories?

The adjusted trial balance for White River for the fiscal year ended June 30,20X9,is presented below. Required: a.Prepare a statement of revenues,expenditures,and changed in fund balance for White River for the year ended June 30,20X9.Assume there were no supplies or outstanding encumbrances at the beginning of the year. b.Prepare a balance sheet for White River at June 30,20X9. Problem 84 (continued):

Identify the legal term that allows the general fund to make expenditures.

Which of the following funds are classified as proprietary funds?

Under the modified accrual basis of accounting,revenue should be recognized when it is:

Goshen City acquires $36,000 of inventory on November 1, 20X5, having held no inventory previously. On December 31, 20X5, the end of Goshen City's fiscal year, a physical count shows $7,000 still in stock. During 20X6, $5,000 of this inventory is used, resulting in a $2,000 remaining balance of supplies on December 31, 20X6. -Based on the preceding information,which of the following would be the correct account balances for 20X6 if Goshen City used the purchase method of accounting for inventories?