Exam 8: Government-Wide Statements: Capital Assets; Long-Term Debt

When preparing the government-wide statements, worksheet entries are made to add the balances of the fiduciary funds

No entries are necessary to eliminate fiduciary funds when preparing the government-wide statements; they are simply left out of the worksheets.

The City of Casper levied property taxes for 2017 in the amount of $9,000,000. By the end of the year, $7,200,000 had been collected. It was estimated that $500,000 would be collected during the next 60 days of 2017 and that $240,000 would be collected after that and the remainder would be uncollectible. The City has a policy of recognizing the full amount possible for property taxes. Which of the following statements is true?

The following balances exist at year end within the governmental activities of a government unit: Transfers In: 145,000 Transfers Out: 115,000 When compiling the government-wide financial statements, the journal entry to eliminate the transfer activity will include:

Governments have the option to capitalize infrastructure assets in the governmental funds' fund-basis financial statements.

With respect to government-wide statement, which of the following statements is correct?

On April 1, 2017, a local government issued bonds in the amount of $1,500,000. The bonds were issued at par and carried an interest rate of 4%, payable October 1 and April 1. When moving from the change in fund balances in the Statement of Revenues, Expenditures, and Changes in Fund Balances to the change in Net Position in the governmental funds column of the Statement of Activities, both for the fiscal year ended June 30, 2017, the effect for the interest accrual only would be:

Which of the following would not be determined to result in asset impairment under GASB?

Which of the following is true regarding the government-wide financial statements?

Capital assets acquired through proprietary funds are reported in both the Statement of Net Position of those funds and the government-wide Statement of Net Position.

A local government recorded the sale of a capital asset at a gain by recording a debit to cash and credit to proceeds of sale of capital asset. What is the worksheet entry when preparing the government-wide statements?

Which of the following fund types is notincluded in the government-wide financial statements?

Internal service funds provide services to governmental departments; therefore they are incorporated into the business-type activities category of the government-wide statements.

In addition to a Statement of Net Position, which of the following are government-wide statements?

Which of the following is true regarding the government-wide Statement of Net Position?

GASB requires a reconciliation from governmental fund financial statements to the government-wide statements governmental-activities columns from modified accrual accounting to accrual accounting.

Which of the following is true concerning infrastructure assets?

When preparing government-wide statements, which of the following is not true?

When converting from the enterprise funds Statement of Net Position to the government-wide Statement of Net Position government-wide statements, it is not necessary to add fixed assets and to deduct long-term debt.

When using the modified approach to account for infrastructures, expenditures to extend the life of the infrastructure assets are expensed.