Exam 9: Advanced Topics for State and Local Governments

Under governmental accounting principles for capital and operating ; expenditures are recorded each period for the amount of the annual lease payment for all , but the expenditures are classified differently for capital and operating .

Service type are typically accounted for in the General Fund.

A government offering a defined benefit pension plan determines it is necessary to alter actuarial assumptions increasing the estimated cost of pension benefits. How would the resulting increase in the net pension liability be recognized in the financial statements in the year the plan is changed?

On Dec. 31, 2016, the Eastville City water department leased equipment under a noncancelable lease agreement that transferred title to the city after making seven payments of $ 15,250. The present value 6% interest) of the minimum lease payments is $90,250. Payments are to take place on December 31 beginning in 2016. Required: Prepare journal entries for 2016 and 2017 assuming the estimated useful life of the equipment is 10 years.

Special-purpose governmental entities that are engaged in a single business activity are not required to prepare government-wide financial statements, but issue only enterprise fund statements.

How should the payments under a capital lease be accounted for in the governmental funds?

Assume a government is determined to be a special-purpose government engaged in business-type activities only. Which of the following financial statements would be required?

A special assessment tax is

Capital assets acquired through capital by the General Fund are reported in the General Fund Balance Sheet.

At the inception of a capital lease agreement for a piece of equipment used in governmental operations,

For financial reporting purposes, governmental health care entities, public school systems, other not-for-profit entities and public colleges and universities may be considered to be special-purpose entities.

Assume a government is a special-purpose entity engaged in fiduciary activities only. Which of the following financial statements would be required?

Which of the following is true for a city government participating in a state sponsored pension plan for its law enforcement employees.

List three examples types of general-purpose state or local governments and three special-purpose local governments.

What are the required parts of the annual financial report for special-purpose local governments engaged only in business-type activities?

A government sponsoring a defined benefit pension plan changes an assumption underlying the measurement of the net pension liability. Assuming the estimated of this liability increases, how will this be reflected in the government-wide statements?

A downtown shopping district desires additional police patrols and agrees to pay for the service through a special assessment property tax. Which fund should be used to account for the special assessment tax proceeds?

When a government acquires general fixed assets under a capital lease agreement, the asset should be recorded in the General Fund's fund basis financial statements:

When a governmental unit is primarily or secondarily liable for the debt, debt proceeds for special assessment obligations levied for the construction phase of a capital improvement project should be reported in which of the following fund types?

A government signed a five-year capital lease on January 1, 2017 to obtain some equipment. The lease provided that the government would make a down payment of $20,000 and four $20,000 payments each year after that, beginning January 1, 2016. The government has a fiscal year ending December 31. Upon inception of the lease, the government, in its governmental fund accounting records would: