Exam 9: Advanced Topics for State and Local Governments

A government entered into a capital lease agreement to acquire equipment for the general government on January 1, 2017. Five payments of $9,000 each are to be made, beginning on December 31, 2017. Discounting is at 6%, computed annually. The present value of the five payments is $37,911. Which of the following would be true as of January 1, 2017?

Discuss the difference between general-purpose governments and special-purpose governments.

Which of the following statements is true of a special-purpose government?

must meet all four of the criteria to be classified as capital .

Which of the following is true regarding pension and other employee benefit) trust funds?

Distinguish between Total Pension Liability and Net Pension Liability.

Assume a government makes a change of assumption that results in an increase in its estimate of the net pension liability. The resulting change in the net pension liability will be recorded as a deferred outflow of resources in the period of the change.

If a reporting government is only secondarily responsible for debt under a construction type special assessment, the special assessment is reported in an Agency Fund.

Special purpose governments must be stand-alone local governments.

Which of the following items does not increase the net pension liability and pension expense for a government offering a defined benefit pension plan?

Governments should report the net pension liability in the governmental fund basis statements even if it is not expected to be paid from current financial resources.

Special-purpose governments that are engaged in both governmental and business-type activities or in more than one governmental activity are required to include all of the following in its financial statements except?

How should the acquisition of general fixed assets acquired by capital by a governmental activity be accounted for at the inception of the lease?

Net pension liabilities are reported in statements prepared using the economic resource measurement focus and accrual basis of accounting.

At the inception of a lease, no entry is necessary to record capital lease agreements entered by the General Fund since neither the asset nor the lease obligation appear in the fund-basis statements.

Where is the Net Pension Liability reported in the financial statements?

What are the two types of ?

Where should a government report special assessment debt that the government is not liable for in any way?

Differences between the projected and actual returns on pension plan investments are deferred and recognized in expense over a five-year period.

Which of the following is true with respect to special assessment levies?