Question 1

Which item is not included on the government-wide Statement of Activities?

Accepted Answer

A) revenues. 
B) expenses. 
C) assets. 
D) operating grants. 
E) capital contributions. 
A) revenues. 
B) expenses. 
C) assets. 
D) operating grants. 
E) capital contributions.

Question 2

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

Accepted Answer

A letter of transmittal from a

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 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 as an expenditure when it is actually paid.

Question 4

GASB No.34 makes which of the following statements regarding Management's Discussion and Analysis?

Accepted Answer

A) MD&A is required only for Proprietary Fund Financial Statements. 
B) MD&A is required for all state and local government financial statements. 
C) MD&A is only required for comprehensive annual financial reports. 
D) MD&A for state and local government financial statements must include an analysis of potential,untapped revenue sources. 
E) MD&A is an optional inclusion for state and local government financial statements. 
A) MD&A is required only for Proprietary Fund Financial Statements. 
B) MD&A is required for all state and local government financial statements. 
C) MD&A is only required for comprehensive annual financial reports. 
D) MD&A for state and local government financial statements must include an analysis of potential,untapped revenue sources. 
E) MD&A is an optional inclusion for state and local government financial statements.

Question 5

A five-year lease is signed by the City of Wachovia for equipment with a seven-year life.The asset will be returned to the lessor at the end of the lease.The present value of the lease is $20,000,and annual payments of $5,411.41 are payable beginning on the date the lease is signed.The interest portion of the second payment is $1,604.75.The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund.
What entry should be made for the government-wide financial statements on the date the lease is signed?

Accepted Answer

A) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E. 
A) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E.

Question 6

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

Accepted Answer

A) the purpose of the Statement of Net Assets is to report the economic resources of the government as a whole. 
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) Business-type activities include Enterprise Funds. 
A) the purpose of the Statement of Net Assets is to report the economic resources of the government as a whole. 
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) Business-type activities include Enterprise Funds.

Question 7

The town of Conway opened a solid waste landfill in 1998 that is now filled to capacity.The city initially anticipated closure costs of $2 million.These costs were not expected to be incurred until the landfill is closed.What is the final journal entry to record these costs assuming the estimated $2 million closure costs were properly recorded and the landfill is accounted for in an enterprise fund?

Accepted Answer

A) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E. 
A) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E.

Question 8

A method of depreciation for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called

Accepted Answer

A) Government-wide depreciation. 
B) Proprietary depreciation. 
C) GASB depreciation. 
D) Modified approach. 
E) Alternative depreciation. 
A) Government-wide depreciation. 
B) Proprietary depreciation. 
C) GASB depreciation. 
D) Modified approach. 
E) Alternative depreciation.

Question 9

What is meant by the term legally independent?

Accepted Answer

Legal independence is demonstr

Question 10

A five-year lease is signed by the City of Wachovia for equipment with a seven-year life.The asset will be returned to the lessor at the end of the lease.The present value of the lease is $20,000,and annual payments of $5,411.41 are payable beginning on the date the lease is signed.The interest portion of the second payment is $1,604.75.The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund.
What should be recorded in the General Fund on the date the lease is signed?

Accepted Answer

A) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E. 
A) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E.

Question 11

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

Accepted Answer

The introductory sec

Question 12

.The City of Wetteville has a fiscal year ending June 30.Examine the following transactions for Wetteville:
(A. )On 6/1/08,Wetteville enters into a 5-year lease on a copying machine.The lease meets the criteria of a capital lease and carries an implied interest rate of 10%.The copier has a present value of $2,300.Wetteville has to put a $300 down payment on the lease at the beginning of the lease with monthly payments thereafter of $42.49.
(B. )On 6/5/08,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 at $3,500,000.
(C. )On 6/15/08,the end of the two-week pay period,Wetteville has $20,000 in accrued vacation pay related to the payroll for the period.The city estimates that $5,000 of this pay will be taken by the end of this summer and the rest will be used next summer.
(D. )On 6/18/08,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.
(E. )On 6/30/08,Wetteville makes its first payment on the leased copier.The $42.49 payment includes $16.68 interest.
(F. )On 6/30/08,Wetteville estimates that the landfill is 2% filled.
Required:
Prepare the journal entries for the above transactions,on the dates mentioned for each lettered item,for the purposes of preparing the government-wide financial statements.

Accepted Answer

The answer of .The City of Wetteville has a fiscal...

Question 13

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

Which item is not included on the government-wide Statement of Activities?

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

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

GASB No.34 makes which of the following statements regarding Management's Discussion and Analysis?

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

A method of depreciation for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called

What is meant by the term legally independent?

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

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?

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 - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 17: Accounting for State and Local Governments,part II

Which item is not included on the government-wide Statement of Activities?

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

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

GASB No.34 makes which of the following statements regarding Management's Discussion and Analysis?

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

A method of depreciation for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called

What is meant by the term legally independent?

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

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?

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 - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters