Deck 12: State and Local Governments: External Financial Reporting

Question 1

The CAFR is required to include basic financial statements. Which item below is not included in the basic financial statements?

A) Management's discussion and analysis
B) Notes to financial statements
C) Fund financial statements
D) Government-wide financial statements

Answer 1

Management's discussion and analysis

Question 2

Which financial statements are prepared using modified accrual accounting?

A) Government-wide financial statements
B) Proprietary fund financial statements
C) Governmental fund financial statements
D) Fiduciary fund financial statements

Answer 2

Governmental fund financial statements

Question 3

As compared with modified accrual accounting, full accrual accounting for governments

A) more accurately reports the impact of current activities on future financial condition.
B) provides more complete information on the government's ability to pay creditors.
C) more accurately monitors whether the government's activities are within the constraints of the legal budget.
D) provides more accurate information on internal and external constraints on the ability of the government to spend resources.

Answer 3

more accurately reports the impact of current activities on future financial condition.

Question 4

The government-wide financial statements divide activities between which two types?

A) Proprietary and fiduciary
B) Modified accrual and full accrual
C) Governmental and business-type
D) General fund and other major funds

Question 5

In the government-wide statement of activities, business-type activities report on the activities of which funds?

A) Governmental and internal service funds
B) Enterprise and internal service funds
C) General fund and enterprise funds
D) Enterprise funds

Question 6

The activities of which fund type appear in the governmental activities section of the government-wide financial statements?

A) Pension and OPEB fund
B) Enterprise fund
C) Custodial fund
D) Internal service fund

Question 7

The government-wide statement of activities includes all but which one of the following items?

A) General tax revenues
B) Proceeds from sale of bonds
C) Charges for services
D) Expenses of governmental activities

Question 8

The government-wide statement of net position includes all but which one of the following items?

A) Buildings and equipment
B) Intangible assets
C) Unassigned fund balance
D) Bonds payable

Question 9

Which item does not appear on the government-wide statement of activities?

A) Investment income
B) Component unit change in net position
C) Transfers from business-type activities to governmental activities
D) Due from enterprise fund

Question 10

Which account will you never see on the government-wide statement of activities?

A) Enterprise fund expenses
B) Proceeds from sale of capital assets
C) General government expenses
D) Property tax revenues

Question 11

Which account might appear on the government-wide statement of net position?

A) Receivable from component unit
B) Due from special revenue fund to general fund
C) Committed fund balance
D) Encumbrances

Question 12

In the statement of net position, the net position section is displayed using the same categories for

A) Governmental funds and proprietary funds.
B) Government-wide statements and proprietary funds.
C) Proprietary funds and fiduciary funds.
D) Government-wide statements and fiduciary funds.

Question 13

The year-end balances of assets of fiduciary funds are reported

A) only on the statement of fiduciary net position.
B) on the government-wide statement of net position and on the statement of fiduciary net position.
C) only on the balance sheet of governmental funds.
D) on none of the financial statements.

Question 14

The year-end balance of buildings and equipment of governmental funds is reported

A) on the government-wide statement of net position and on the balance sheet of governmental funds.
B) only on the balance sheet of governmental funds.
C) only on the government-wide statement of net position.
D) on none of the financial statements.

Question 15

The year-end balance of amounts due from other governmental funds to the general fund is reported

A) only on the balance sheet of governmental funds.
B) on the government-wide statement of net position and on the balance sheet of governmental funds.
C) only on the government-wide statement of net position.
D) on none of the financial statements.

Question 16

The year-end balance of amounts due from an enterprise fund to the general fund is reported

A) only on the balance sheet of governmental funds.
B) only on the government-wide statement of net position.
C) on the government-wide statement of net position and on the balance sheet of governmental funds.
D) on none of the financial statements.

Question 17

The year-end balance of amounts due from other governments to the enterprise fund is reported

A) on the government-wide statement of net position and on the statement of net position of proprietary funds.
B) only on the government-wide statement of net position.
C) only on the statement of net position of proprietary funds.
D) on none of the financial statements.

Question 18

Deferred inflows and outflows of resources may be found on

A) the government-wide statement of net position only.
B) the government-wide and proprietary funds statements of net position.
C) the proprietary and fiduciary funds statements of net position.
D) the government-wide, proprietary and fiduciary statements of net position and the governmental funds balance sheet.

Question 19

Which fund statements are presented in the CAFR for governmental funds?

A) Balance sheet, statement of revenues, expenses and changes in net position, and statement of cash flows
B) Statement of net position and statement of changes in net position
C) Balance sheet and statement of revenues, expenses and changes in net position
D) Balance sheet and statement of revenues, expenditures, and changes in fund balances

Question 20

Use the following information to answer Questions bellow:
$\text { Here is information for a county government: }$
$\begin{array}{|l|r|r|}\hline & \text { Governmental funds } & {\text { Enterprise funds }} \\\hline \text { Total assets and deferred outflows } & \$ 45,000,000 & \$ 40,000,000 \\\hline \text { Total liabilities and deferred inflows } & 44,000,000 & 38,000,000 \\\hline \text { Total revenues } & 250,000,000 & 290,000,000 \\\hline \text { Total expenditures/expenses } & 242,000,000 & 260,000,000\\\hline\end{array}$

$\text { The county has four special revenue funds, with the following characteristics: }$
$\begin{array}{|l|r|r|r|r|}\hline &{\begin{array}{c}\text { Beach } \\\text { preservation }\end{array}} & {\begin{array}{c}\text { Health } \\\text { education }\end{array}} &{\begin{array}{c}\text { Community } \\\text { protection }\end{array}} & {\begin{array}{c}\text { Emergency call } \\\text { service }\end{array}} \\\hline \begin{array}{l}\text { Total assets and } \\\text { deferred outflows }\end{array} & \$ 2,000,000 & \$ 4,000,000 & \$ 4,800,000 & \$ 1,900,000 \\\hline \begin{array}{l}\text { Total liabilities and } \\\text { deferred inflows }\end{array} & 1,000,000 & 3,500,000 & 1,800,000 & 1,100,000 \\\hline \text { Total revenues } & 20,000,000 & 30,000,000 & 30,000,000 & 26,000,000 \\\hline \text { Total expenditures } & 15,000,000 & 26,000,000 & 25,000,000 & 24,000,000 \\\hline\end{array}$

-Which of these special revenue funds meet the first criterion for reporting as major funds in the governmental funds financial statements?

A) Health education fund only
B) Health education, community protection, and emergency call service funds
C) Health education and community protection funds
D) Beach preservation and health education funds

Question 21

Use the following information to answer Questions bellow:
$\text { Here is information for a county government: }$
$\begin{array}{|l|r|r|}\hline & \text { Governmental funds } & {\text { Enterprise funds }} \\\hline \text { Total assets and deferred outflows } & \$ 45,000,000 & \$ 40,000,000 \\\hline \text { Total liabilities and deferred inflows } & 44,000,000 & 38,000,000 \\\hline \text { Total revenues } & 250,000,000 & 290,000,000 \\\hline \text { Total expenditures/expenses } & 242,000,000 & 260,000,000\\\hline\end{array}$

$\text { The county has four special revenue funds, with the following characteristics: }$
$\begin{array}{|l|r|r|r|r|}\hline &{\begin{array}{c}\text { Beach } \\\text { preservation }\end{array}} & {\begin{array}{c}\text { Health } \\\text { education }\end{array}} &{\begin{array}{c}\text { Community } \\\text { protection }\end{array}} & {\begin{array}{c}\text { Emergency call } \\\text { service }\end{array}} \\\hline \begin{array}{l}\text { Total assets and } \\\text { deferred outflows }\end{array} & \$ 2,000,000 & \$ 4,000,000 & \$ 4,800,000 & \$ 1,900,000 \\\hline \begin{array}{l}\text { Total liabilities and } \\\text { deferred inflows }\end{array} & 1,000,000 & 3,500,000 & 1,800,000 & 1,100,000 \\\hline \text { Total revenues } & 20,000,000 & 30,000,000 & 30,000,000 & 26,000,000 \\\hline \text { Total expenditures } & 15,000,000 & 26,000,000 & 25,000,000 & 24,000,000 \\\hline\end{array}$

-Which of these special revenue funds also meet the second criterion for reporting as a major fund in the governmental funds financial statements, and therefore will be reported as major funds?

A) Health education fund only
B) Health education, community protection, and emergency call service funds
C) Health education and community protection funds
D) Beach preservation and health education funds

Question 22

Use the following information to answer Questions bellow:
$\text { Here is information for a county government: }$
$\begin{array}{|l|r|r|}\hline & {\text { Governmental funds }} & {\text { Enterprise funds }} \\\hline \text { Total assets and deferred outflows } & \$ 45,000,000 & \$ 102,000,000 \\\hline \text { Total liabilities and deferred inflows } & 16,000,000 & 48,000,000 \\\hline \text { Total revenues } & 250,000,000 & 280,000,000 \\\hline \text { Total expenditures /expenses } & 242,000,000 & 160,000,000\\\hline\end{array}$

$\text { The county has four capital projects funds, with the following characteristics: }$
$\begin{array}{|c|c|c|c|c|}\hline & \begin{array}{l}\text { Road } \\\text { fund }\end{array} & \begin{array}{l}\text { Bridges } \\\text { fund }\end{array} & \begin{array}{l}\text { Buildings } \\\text { fund }\end{array} & \begin{array}{l}\text { Equipment } \\\text { fund }\end{array} \\\hline \begin{array}{l}\text { Total assets and } \\\text { deferred outflows }\end{array} & \$ 8,000,000 & \$ 4,000,000 & \$ 3,500,000 & \$ 7,000,000 \\\hline \begin{array}{l}\text { Total liabilities and } \\\text { deferred inflows }\end{array} & 1,500,000 & 1,200,000 & 2,000,000 & 3,000,000 \\\hline \text { Total revenues } & 24,000,000 & 26,000,000 & 22,000,000 & 26,800,000 \\\hline \text { Total expenditures } & 28,000,000 & 23,000,000 & 20,000,000 & 26,000,000 \\\hline\end{array}$

-Which of these capital projects funds meet the first criterion for reporting as major funds in the governmental funds financial statements?

A) Road fund only
B) Road fund and equipment fund only
C) Road fund, bridges fund, and equipment fund
D) Road fund, bridges fund, buildings fund, and equipment fund

Question 23

Use the following information to answer Questions bellow:
$\text { Here is information for a county government: }$
$\begin{array}{|l|r|r|}\hline & {\text { Governmental funds }} & {\text { Enterprise funds }} \\\hline \text { Total assets and deferred outflows } & \$ 45,000,000 & \$ 102,000,000 \\\hline \text { Total liabilities and deferred inflows } & 16,000,000 & 48,000,000 \\\hline \text { Total revenues } & 250,000,000 & 280,000,000 \\\hline \text { Total expenditures /expenses } & 242,000,000 & 160,000,000\\\hline\end{array}$

$\text { The county has four capital projects funds, with the following characteristics: }$
$\begin{array}{|c|c|c|c|c|}\hline & \begin{array}{l}\text { Road } \\\text { fund }\end{array} & \begin{array}{l}\text { Bridges } \\\text { fund }\end{array} & \begin{array}{l}\text { Buildings } \\\text { fund }\end{array} & \begin{array}{l}\text { Equipment } \\\text { fund }\end{array} \\\hline \begin{array}{l}\text { Total assets and } \\\text { deferred outflows }\end{array} & \$ 8,000,000 & \$ 4,000,000 & \$ 3,500,000 & \$ 7,000,000 \\\hline \begin{array}{l}\text { Total liabilities and } \\\text { deferred inflows }\end{array} & 1,500,000 & 1,200,000 & 2,000,000 & 3,000,000 \\\hline \text { Total revenues } & 24,000,000 & 26,000,000 & 22,000,000 & 26,800,000 \\\hline \text { Total expenditures } & 28,000,000 & 23,000,000 & 20,000,000 & 26,000,000 \\\hline\end{array}$

-Which of these capital projects funds also meet the second criterion for reporting as major funds, and therefore are reported as major funds in the governmental funds financial statements?

A) Road fund only
B) Road fund and equipment fund only
C) Road fund, bridges fund, and equipment fund
D) Bridges fund, buildings fund, and equipment fund

Question 24

Which statement is false regarding separate disclosure of funds in the governmental fund financial statements?

A) Internal service funds are reported in total regardless of the size of the individual funds.
B) Each governmental fund type (general, debt service, etc.) is separately disclosed.
C) Only major enterprise funds are separately reported.
D) Fiduciary funds are reported in total by category, regardless of the size of the individual funds in each category.

Question 25

Here is information on the results of operations of a local government for the current year:
$$\begin{array} { | l | r | } \hline \text { Change in fund balances, governmental funds } & \$ 5,000,000 \\\hline \text { Increase in internal service net position } & 100,000 \\\hline \text { Payments of principal on general long-term debt } & 1,200,000 \\\hline \text { Proceeds from issuing general long-term debt } & 3,000,000 \\\hline \text { Outlays for general capital assets } & 2,500,000 \\\hline \text { Depreciation expense on general capital assets } & 400,000 \\\hline\end{array}$$ The change in net position of governmental activities, reported on the government-wide statement of activities, is:

A) $5,200,000
B) $5,400,000
C) $9,000,000
D) $3,000,000

Question 26

Here is information on the results of operations of a county government for the current year:
$$\begin{array} { | l | r | } \hline \text { Change in fund balances, governmental funds } & \$ 2,000,000 \\\hline \text { Accrued pension expenses of governmental funds } & 100,000 \\\hline \text { Payments of principal on general long-term debt } & 1,500,000 \\\hline \text { Proceeds from issuing general long-term debt } & 6,000,000 \\\hline \text { Outlays for general capital assets } & 4,000,000 \\\hline \text { Depreciation expense on general capital assets } & 500,000 \\\hline \text { Net loss on disposal of general capital assets } & 60,000 \\\hline \text { Proceeds from the sale of general capital assets } & 200,000 \\\hline\end{array}$$ The change in net position of governmental activities, reported on the government-wide statement of activities, is:

A) $1,640,000
B) $1,140,000
C) $ 640,000
D) $1,040,000

Question 27

Here is information on activities of governmental funds for a county government for the current year:
$$\begin{array} { | l | r | } \hline \text { Change in fund balances } & \$ 1,500,000 \\\hline \text { Depreciation expense } & 600,000 \\\hline \text { Lease principal payments } & 85,000 \\\hline \text { Proceeds from issuing general long term debt } & 3,000,000 \\\hline \text { Outlays for general capital assets } & 2,800,000 \\\hline \text { Increase in pension and OPEB liability } & 100,000 \\\hline \text { Gain on disposal of general capital assets } & 10,000 \\\hline \text { Proceedsfrom the sale of general capital assets } & 150,000 \\\hline \text { Amortization of bo nd premiums } & 4,000 \\\hline\end{array}$$ The change in net position of governmental activities, reported on the government-wide statement of activities, is:

A) $1,221,000
B) $1,251,000
C) $1,241,000
D) $ 549,000

Question 28

Here is information on a county government's governmental funds at the end of the current year:
$$\begin{array} { | l | r | } \hline \text { Fund balances, governmental funds } & \$ 6,000,000 \\\hline \text { Accrued interest on long-term debt } & 50,000 \\\hline \text { Principal of long-term debt } & 10,000,000 \\\hline \text { Capital assets net of accumulated depreciation } & 8,000,000 \\\hline \text { Net OPEB obligation } & 700,000 \\\hline \text { Net pension obligation } & 2,500,000 \\\hline\end{array}$$ The net position of governmental activities, reported on the government-wide statement of net position, is:

A) $11,250,000
B) $ 750,000
C) $ 7,250,000
D) $ 5,750,000

Question 29

Here is information on a town government's governmental funds at the end of the current year:
$$\begin{array} { | l | r | } \hline \text { Fund balances, governmental funds } & \$ 14,000,000 \\\hline \text { Capital assets, accumulated depreciation } & 12,000,000 \\\hline \text { Principal of long-term debt } & 25,000,000 \\\hline \text { Noncurrent accrued compensated absences } & 2,000,000 \\\hline \text { Capital assets, at cost } & 54,000,000 \\\hline \text { Net pension and OPEB obligation } & 30,000,000 \\\hline\end{array}$$ The net position of governmental activities at the end of the current year is:

A) $11,000,000
B) $29,000,000
C) $(1,000,000)
D) $23,000,000

Question 30

In a reconciliation of change in fund balances-governmental funds to change in net position-governmental activities, which one of the following is not a correct reconciliation item?

A) Subtract amortization of deferred outflows from governmental debt refunding losses
B) Subtract the increase in accrued interest on governmental funds long-term debt
C) Subtract the increase in net pension obligation of governmental funds
D) Add the net loss on disposal of capital assets of governmental funds

Question 31

In a reconciliation of change in fund balances-governmental funds to change in net position-governmental activities, which one of the following is a correct reconciliation item?

A) Add loan and commercial paper issuance proceeds of governmental funds
B) Add principal payments of long-term debt of governmental funds
C) Add the increase in pension liabilities of governmental funds
D) Subtract the decrease in OPEB obligations of governmental funds

Question 32

In a reconciliation of total governmental fund balances to net position of governmental activities, which one of the following is not a correct reconciliation item?

A) Subtract accrued interest on long-term debt of governmental funds
B) Subtract noncurrent compensated employee absences payable of governmental funds
C) Add fiduciary fund net position
D) Add intangible assets of governmental funds

Question 33

In a reconciliation of fund balances-governmental funds to net position-governmental activities, which one of the following is a correct reconciliation item?

A) Add capital lease obligations of governmental funds
B) Add the net position of internal service funds
C) Add the proceeds from sale of capital assets
D) Add property taxes receivable expected to be collected after 60 days

Question 34

Use the following information to answer Questions bellow:
At the beginning of fiscal 2020, the county government signs a 2-year lease, with $50,000 paid at signing, and $50,000 due at the end of fiscal 2020. The lease has an implicit interest rate of 3%, the present value of the lease payments is $98,544, and the leased equipment has an estimated life equal to the life of the lease, no residual value.

-The lease is reported in the general fund. What asset is reported for this lease in the governmental funds balance sheet at the end of fiscal 2020?

A) Leased asset, $98,544
B) Leased asset, $49,272
C) Leased asset, $100,000
D) No asset is reported.

Question 35

Use the following information to answer Questions bellow:
At the beginning of fiscal 2020, the county government signs a 2-year lease, with $50,000 paid at signing, and $50,000 due at the end of fiscal 2020. The lease has an implicit interest rate of 3%, the present value of the lease payments is $98,544, and the leased equipment has an estimated life equal to the life of the lease, no residual value.

-The lease is reported in the general fund. What amount is reported as expenditures for this lease in the fiscal 2020 governmental funds statement of revenues, expenditures and changes in fund balances?

A) $ 50,728
B) $198,544
C) $100,000
D) $ 98,544

Question 36

Use the following information to answer Questions bellow:
At the beginning of fiscal 2020, the county government signs a 2-year lease, with $50,000 paid at signing, and $50,000 due at the end of fiscal 2020. The lease has an implicit interest rate of 3%, the present value of the lease payments is $98,544, and the leased equipment has an estimated life equal to the life of the lease, no residual value.

-The lease is reported in an enterprise fund. What asset is reported for this lease in the proprietary funds statement of net position at the end of fiscal 2020?

A) Leased asset, $98,544
B) Leased asset, $49,272
C) Leased asset, $100,000
D) No asset is reported.

Question 37

Use the following information to answer Questions bellow:
At the beginning of fiscal 2020, the county government signs a 2-year lease, with $50,000 paid at signing, and $50,000 due at the end of fiscal 2020. The lease has an implicit interest rate of 3%, the present value of the lease payments is $98,544, and the leased equipment has an estimated life equal to the life of the lease, no residual value.

-The lease is reported in an enterprise fund. What amount is reported as total expenses for this lease in the fiscal 2020 proprietary funds statement of revenues, expenses and changes in net position?

A) $ 50,728
B) $198,544
C) $100,000
D) $ 98,544

Question 38

For questions bellow, use the numbers from the following financial statements
required in a county government's CAFR to identify where the account is reported:
1) Government-wide statement: Statement of net position
2) Government-wide statement: Statement of activities
3) Fund statement: Balance sheet-Governmental funds
4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds
5) Fund statement: Statement of net position-Proprietary funds
6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds

-On which financial statement(s) are the proceeds from disposal of capital assets of governmental and proprietary funds reported?

A) 2 and 6
B) 2 and 4
C) 4 only
D) 2, 4 and 6

Question 39

For questions bellow, use the numbers from the following financial statements
required in a county government's CAFR to identify where the account is reported:
1) Government-wide statement: Statement of net position
2) Government-wide statement: Statement of activities
3) Fund statement: Balance sheet-Governmental funds
4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds
5) Fund statement: Statement of net position-Proprietary funds
6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds

-On which financial statement(s) are unrealized losses on derivatives investments of proprietary funds reported?

A) 1 only
B) 1 and 3
C) 1 and 5
D) 2 and 6

Question 40

For questions bellow, use the numbers from the following financial statements
required in a county government's CAFR to identify where the account is reported:
1) Government-wide statement: Statement of net position
2) Government-wide statement: Statement of activities
3) Fund statement: Balance sheet-Governmental funds
4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds
5) Fund statement: Statement of net position-Proprietary funds
6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds

-On which financial statement(s) are lease obligations of governmental and proprietary funds reported?

A) 1 only
B) 1 and 3
C) 5 only
D) 1 and 5

Question 41

For questions bellow, use the numbers from the following financial statements
required in a county government's CAFR to identify where the account is reported:
1) Government-wide statement: Statement of net position
2) Government-wide statement: Statement of activities
3) Fund statement: Balance sheet-Governmental funds
4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds
5) Fund statement: Statement of net position-Proprietary funds
6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds

-On which financial statement(s) are deferred outflows for bond refunding by governmental funds reported?

A) 1 only
B) 1 and 3
C) 1 and 5
D) 2 and 6

Question 42

For questions bellow, use the numbers from the following financial statements
required in a county government's CAFR to identify where the account is reported:
1) Government-wide statement: Statement of net position
2) Government-wide statement: Statement of activities
3) Fund statement: Balance sheet-Governmental funds
4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds
5) Fund statement: Statement of net position-Proprietary funds
6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds

-On which financial statement(s) are capital assets of permanent funds reported?

A) 1 only
B) 1 and 5
C) 5 only
D) 1, 2, and 5

Question 43

For questions bellow, use the numbers from the following financial statements
required in a county government's CAFR to identify where the account is reported:
1) Government-wide statement: Statement of net position
2) Government-wide statement: Statement of activities
3) Fund statement: Balance sheet-Governmental funds
4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds
5) Fund statement: Statement of net position-Proprietary funds
6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds

-On which financial statement(s) are capital assets of internal service funds reported?

A) 1 only
B) 1 and 5
C) 5 only
D) 1, 3, and 5

Question 44

For questions bellow, use the numbers from the following financial statements
required in a county government's CAFR to identify where the account is reported:
1) Government-wide statement: Statement of net position
2) Government-wide statement: Statement of activities
3) Fund statement: Balance sheet-Governmental funds
4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds
5) Fund statement: Statement of net position-Proprietary funds
6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds

-On which financial statement(s) are principal payments made by governmental funds reported?

A) 2 only
B) 4 only
C) 2 and 4
D) 2, 4 and 6

Question 45

A city's governmental funds balance sheet reports total assets of $71 million. The government-wide statement of net position for the same date reports total assets of governmental activities of $350 million. What is the most likely reason for the discrepancy between these two numbers?

A) The government-wide statement of net position reports capital assets used by governmental funds while the governmental funds balance sheet does not.
B) The government-wide statement of net position reports pension investments related to governmental fund employees while the governmental funds balance sheet does not.
C) The government-wide statement of net position includes internal service fund assets in governmental activities, while the governmental funds balance sheet does not.
D) The government-wide statement of net position reports long-term debt of governmental funds while the governmental funds balance sheet does not.

Question 46

In a county's CAFR for the current fiscal year, governmental activities expenses on the government-wide statement of activities are $200 million and governmental fund expenditures on the governmental funds statement of revenues, expenditures, and changes in fund balances are $225 million. What is a possible reason why expenditures are higher than expenses?

A) Large principal payments on general obligation debt.
B) Large accruals of pension benefits not requiring current resources.
C) Large amounts of general obligation debt issued.
D) Large amounts of depreciation expense on governmental capital assets.

Question 47

A state's governmental funds balance sheet at fiscal year-end reports total liabilities of $20 billion. The state's government-wide statement of net position at fiscal year-end reports total liabilities of governmental activities of $200 billion. What is likely to be the major reason for the large discrepancy between these two numbers?

A) The government-wide statement includes internal service fund liabilities while the governmental funds statement does not.
B) The government-wide statement reports amounts due to other governments and agencies while the governmental funds statement does not.
C) The government-wide statement reports bond and pension liabilities of governmental funds while the governmental funds statement does not.
D) The government-wide statement reports deferred outflows from bond refundings while the governmental funds statement does not.

Question 48

A county's CAFR shows an increase in fund balances of governmental funds of $15 million and a decrease in net position of governmental activities of $3 million. What would be a reason why the change in net position of governmental activities is $18 million lower than the change in fund balances of governmental funds?

A) Depreciation expense is $18 million lower than purchases of capital assets.
B) Expenses for pension benefits are $18 million lower than repayments of debt principal.
C) Internal service fund net position increases by $18 million.
D) Purchases of capital assets are $18 million lower than accrued expenses not requiring current resources.

Question 49

A county's operating statement for governmental funds reports general government expenditures of $25 million. The statement of activities reports general government expenses of $62 million. Which one of the following items would not help explain why general government expenses are greater than general government expenditures?

A) The $62 million of expenses includes accrued expenses not requiring current resources.
B) The $25 million of expenditures does not include depreciation on general government capital assets.
C) The $25 million of expenditures includes principal payments on debt.
D) The $52 million of expenses includes pension benefits earned by general government employees this year.

Question 50

In its government-wide statement of net position, a county government reports total assets of $400 million for governmental activities. In the governmental funds balance sheet, total assets for governmental funds are $100 million. Which item could explain why total assets of governmental activities is higher than total assets of governmental funds?

A) Fair value of derivative investments
B) Due from other governmental funds
C) Due from other governments
D) Deferred outflows of resources

Question 51

In its statement of activities, a county government reports general government expenses of $420 million. In the governmental funds operating statement, general government expenditures are $341 million. Which cost item would be least likely to account for the discrepancy between these two numbers?

A) interfund loans
B) pension costs
C) depreciation
D) compensated absences

Question 52

In the footnotes to the financial statements of a CAFR, there is a schedule reconciling the general fund "budgetary actual" results to the actual change in fund balances reported by the general fund in its operating statement. Which one of the following would not be included as a reconciliation item in this schedule?

A) The general fund accrues tax revenues to be received after the end of the year, while the legal budget does not include these as revenues.
B) The general fund includes the results of some activities that are not included in its legal budget.
C) The general fund accrues OPEB benefits earned by current employees, while the legal budget does not include these as expenditures.
D) The legal budget reports outstanding encumbrances at year-end as expenditures, while the general fund does not.

Question 53

Here is information on a county's general fund performance for the year:
Revenues and other financing sources in excess of expenditures and other
Financing uses-GAAP basis..............$300,000
Outstanding encumbrances, beginning of year...............9,000
Outstanding encumbrances, end of year..................15,000
What are revenues and other financing sources in excess of expenditures and other financing uses for the year, appearing on the budgetary comparison schedule, which reports encumbrances using the legal budgetary basis?

A) $300,000
B) $306,000
C) $294,000
D) $285,000

Question 54

Below is information on a county's results of operations for the current year, for the general fund.
$$\begin{array} { | l | r | } \hline \begin{array} { l } \text { Excess of revenues and other financing so urces over expendit ures and other } \\\text { financing uses, leg al budget basis }\end{array} & \$ 670,000 \\\hline \text { Revenues accrued on the modified accrual basis but not on a budget basis } & 40,000 \\\hline \text { Excess of revenues over expenditures for unbudg eted activities and funds } & 25,000 \\\hline \text { Outstanding encumbrances of governmental funds, beginning of year } & 8,000 \\\hline \text { Outstanding encumbrances of governmental funds, end of year } & 5,000 \\\hline\end{array}$$ What is the excess of revenues and other financing sources over expenditures and other financing uses for the general fund, as reported in the governmental funds operating statement, prepared on a modified accrual basis, using the GAAP basis for encumbrances?

A) $738,000
B) $735,000
C) $732,000
D) $710,000

Question 55

A county reports total expenses of governmental activities of $200 million, but total governmental fund expenditures of $90 million. Which item below would help explain why expenses of governmental activities are higher than governmental fund expenditures?

A) Principal payments on bonds
B) Depreciation on buildings and equipment
C) Investments in securities
D) Salaries and wages for administrative staff

Question 56

Use the following information to answer Questions bellow:
At the beginning of fiscal 2019, a county government acquires equipment for $4,000,000. The equipment has an estimated life of 5 years, and straight-line depreciation is used, with no residual value, if appropriate. At the end of fiscal 2020 (two years later), the government disposes of the equipment for $1,800,000.

-If the equipment is reported in the general fund, how does it appear in the fiscal 2019 CAFR?

A) $4,000,000 expenditure in the governmental funds operating statement and the government-wide statement of activities.
B) $4,000,000 expenditure in the governmental funds operating statement and $3,200,000 capital asset in the government-wide statement of net position.
C) $3,200,000 capital asset in the governmental funds balance sheet and the government-wide statement of net position.
D) $4,000,000 other financing use in the governmental funds operating statement and $3,200,000 capital asset in the government-wide statement of net position.

Question 57

Use the following information to answer Questions bellow:
At the beginning of fiscal 2019, a county government acquires equipment for $4,000,000. The equipment has an estimated life of 5 years, and straight-line depreciation is used, with no residual value, if appropriate. At the end of fiscal 2020 (two years later), the government disposes of the equipment for $1,800,000.

-If the equipment is reported in an enterprise fund, how does it appear in the fiscal 2019 CAFR?

A) $4,000,000 expenditure in the proprietary funds operating statement and the government-wide statement of activities.
B) $4,000,000 expenditure in the proprietary funds operating statement and $3,200,000 capital asset in the government-wide statement of net position.
C) $3,200,000 capital asset in the proprietary funds balance sheet and the government-wide statement of net position.
D) $4,000,000 other financing use in the proprietary funds operating statement and $3,200,000 capital asset in the government-wide statement of net position.

Question 58

Use the following information to answer Questions bellow:
At the beginning of fiscal 2019, a county government acquires equipment for $4,000,000. The equipment has an estimated life of 5 years, and straight-line depreciation is used, with no residual value, if appropriate. At the end of fiscal 2020 (two years later), the government disposes of the equipment for $1,800,000.

-If the equipment is reported in the general fund, how is its disposal reported in the fiscal 2020 CAFR?

A) $1,800,000 revenue in the governmental funds operating statement and the government-wide statement of activities.
B) $1,800,000 revenue in the governmental funds operating statement and $600,000 loss in the government-wide statement of activities.
C) $600,000 loss in the governmental funds operating statement and the government-wide statement of activities.
D) $1,800,000 other financing source in the governmental funds operating statement and $600,000 loss in the government-wide statement of activities.

Question 59

Use the following information to answer Questions bellow:
At the beginning of fiscal 2019, a county government acquires equipment for $4,000,000. The equipment has an estimated life of 5 years, and straight-line depreciation is used, with no residual value, if appropriate. At the end of fiscal 2020 (two years later), the government disposes of the equipment for $1,800,000.

-If the equipment is reported in an enterprise fund, how is its disposal reported in the fiscal 2020 CAFR?

A) $1,800,000 revenue in the proprietary funds operating statement and the government-wide statement of activities.
B) $1,800,000 revenue in the proprietary funds operating statement and $600,000 loss in the government-wide statement of activities.
C) $600,000 loss in the proprietary funds operating statement and the government-wide statement of activities.
D) $1,800,000 other financing source in the proprietary funds operating statement and $600,000 loss in the government-wide statement of activities.

Question 60

Use the following information to answer Questions bellow:
At the beginning of fiscal 2019, a county government acquires equipment for $4,000,000. The equipment has an estimated life of 5 years, and straight-line depreciation is used, with no residual value, if appropriate. At the end of fiscal 2020 (two years later), the government disposes of the equipment for $1,800,000.

-If the equipment is reported in the general fund, what amount is included in the fiscal 2019 reconciliation of the change in fund balances of governmental funds to the change in net position of governmental activities, related to this equipment?

A) Subtract $4,000,000.
B) Subtract $800,000.
C) Add $3,200,000.
D) Add $4,000,000.

Question 61

Use the following information to answer Questions bellow:
At the beginning of fiscal 2019, a county government acquires equipment for $4,000,000. The equipment has an estimated life of 5 years, and straight-line depreciation is used, with no residual value, if appropriate. At the end of fiscal 2020 (two years later), the government disposes of the equipment for $1,800,000.

-If the equipment is reported in the general fund, what amount is subtracted in the fiscal 2020 reconciliation of the change in fund balances of governmental funds to the change in net position of governmental activities, related to this equipment?

A) $3,200,000
B) $2,400,000
C) $1,800,000
D) $ 600,000

Question 62

A county owns many roads, bridges, and other infrastructure. If this infrastructure is well maintained, the government may report depreciation on the infrastructure

A) using the straight-line method on the government-wide statement of activities.
B) at an amount equal to the year's maintenance costs on the government-wide statement of activities.
C) using the straight-line method on the governmental funds operating statement.
D) at an amount equal to the year's maintenance costs on the governmental funds operating statement.

Question 63

On which financial statements in a state's CAFR are investments in securities, not held for hedging, reported at fair value?

A) Government-wide statement of net position, governmental funds balance sheet, proprietary funds statement of net position, and fiduciary funds statement of net position.
B) Government-wide statement of net position only.
C) Government-wide statement of net position, proprietary funds statement of net position, and fiduciary funds statement of net position.
D) Proprietary funds statement of net position, and fiduciary funds statement of net position.

Question 64

On the fund financial statements, unrealized gains on derivative investments held as hedges are reported

A) on the proprietary funds operating statement and fiduciary funds operating statement.
B) on the proprietary funds statement of net position only.
C) on the governmental funds and proprietary funds statement of net position.
D) on the proprietary funds and fiduciary funds statement of net position.

Question 65

Securities investments of a state or local government are reported at fair value in the government-wide statement of net position

A) only if they are derivative investments classified as qualified hedges.
B) only if they are investments that are hedged by derivative investments.
C) only if they are investments held by proprietary funds; investments by governmental funds are reported as expenditures.
D) for all investments held by governmental and proprietary funds.

Question 66

Use the following information to answer Questions bellow:
On April 1, 2020, Summit County issued $10,000,000 in variable rate debt, with interest paid on March 31 of each year, the county's fiscal year-end. The variable rate is adjusted at the beginning of each year. The variable rate for fiscal 2021 was 2.9%. On the same date, the county entered a receive variable/pay fixed interest rate swap, where the county pays a 3.1% fixed rate to a counterparty. The swap qualifies for hedge accounting. At the end of fiscal 2021, the variable rate is reset to 3.2% and the swap has increased in value by $75,000. By the end of fiscal 2022, the variable rate is reset to 3.4%, and the swap has increased in value by $125,000.

-Interest expense on the bonds for fiscal 2021, reported on the government-wide statement of activities, is

A) $310,000.
B) $290,000.
C) $235,000.
D) $215,000.

Question 67

Use the following information to answer Questions bellow:
On April 1, 2020, Summit County issued $10,000,000 in variable rate debt, with interest paid on March 31 of each year, the county's fiscal year-end. The variable rate is adjusted at the beginning of each year. The variable rate for fiscal 2021 was 2.9%. On the same date, the county entered a receive variable/pay fixed interest rate swap, where the county pays a 3.1% fixed rate to a counterparty. The swap qualifies for hedge accounting. At the end of fiscal 2021, the variable rate is reset to 3.2% and the swap has increased in value by $75,000. By the end of fiscal 2022, the variable rate is reset to 3.4%, and the swap has increased in value by $125,000.

-Interest expense on the bonds for fiscal 2022, reported on the government-wide statement of activities, is

A) $310,000.
B) $320,000.
C) $185,000.
D) $195,000.

Question 68

Use the following information to answer Questions bellow:
On April 1, 2020, Summit County issued $10,000,000 in variable rate debt, with interest paid on March 31 of each year, the county's fiscal year-end. The variable rate is adjusted at the beginning of each year. The variable rate for fiscal 2021 was 2.9%. On the same date, the county entered a receive variable/pay fixed interest rate swap, where the county pays a 3.1% fixed rate to a counterparty. The swap qualifies for hedge accounting. At the end of fiscal 2021, the variable rate is reset to 3.2% and the swap has increased in value by $75,000. By the end of fiscal 2022, the variable rate is reset to 3.4%, and the swap has increased in value by $125,000.

-The increase in value of the derivatives investment in fiscal 2021 appears as

A) a deferred outflow on the government-wide statement of net position.
B) a deferred inflow on the government-wide statement of net position.
C) an unrealized gain on the government-wide statement of activities.
D) a liability on the government-wide statement of net position.

Question 69

Use the following information to answer Questions bellow:
On April 1, 2020, Summit County issued $10,000,000 in variable rate debt, with interest paid on March 31 of each year, the county's fiscal year-end. The variable rate is adjusted at the beginning of each year. The variable rate for fiscal 2021 was 2.9%. On the same date, the county entered a receive variable/pay fixed interest rate swap, where the county pays a 3.1% fixed rate to a counterparty. The swap qualifies for hedge accounting. At the end of fiscal 2021, the variable rate is reset to 3.2% and the swap has increased in value by $75,000. By the end of fiscal 2022, the variable rate is reset to 3.4%, and the swap has increased in value by $125,000.

-At the beginning of fiscal 2022, the county decides the swap no longer qualifies for hedge accounting. The adjusting entry results in

A) a write-off of the derivatives investment, in the amount of $200,000.
B) an increase in deferred inflows of resources, in the amount of $200,000.
C) a $200,000 loss, reported on the government-wide statement of activities.
D) a $200,000 gain, reported on the government-wide statement of activities.

Question 70

The pension liability reported on the governmental funds balance sheet is equal to

A) the actuarial liability for pension benefit payments related to past service.
B) the total actuarial liability for pension benefit payments related to past service periods, less the net position of the pension plan.
C) the expected future pension payment to be funded by available financial resources.
D) the difference between the annual required pension contributions to the pension trust fund and the government's actual contributions.

Question 71

The pension liability reported in the government-wide statement of net position is equal to

A) the actuarial liability for pension benefit payments related to past service.
B) the total actuarial liability for pension benefit payments related to past service periods, less the net position of the pension plan.
C) the expected future pension payment to be funded by available financial resources.
D) the difference between the annual required pension contributions to the pension trust fund and the government's actual contributions.

Question 72

Increases in a government's pension liability that are due to benefits earned in the current year are reported in

A) Deferred inflows on the government-wide statement of net position.
B) Pension liability on the pension trust fund's statement of net position.
C) Pension expense on the government-wide statement of activities.
D) Deferred outflows of resources on the government-wide statement of net position.

Question 73

Increases in a government's pension liability that are due to changes in economic or demographic assumptions or actual results that are different from expected results, are reported in

A) Deferred inflows of resources on the government-wide statement of net position.
B) Pension liability on the pension trust fund's statement of net position.
C) Pension expense on the government-wide statement of activities.
D) Deferred outflows of resources on the government-wide statement of net position.

Question 74

Use the following information to answer bellow Questions.
A county reports its defined benefit pensions for employees of governmental and proprietary funds on the government-wide financial statements. Here is information for fiscal 2021.
•The total pension liability, measured at the end of fiscal 2021, is $100,000,000, while the total pension liability, measured at the end of fiscal 2020, is $85,000,000.
•The net increase in deferred outflows related to pensions was $2,000,000, while deferred outflows released to pension expense were $300,000.
•The net increase in deferred inflows related to pensions was $150,000, while deferred inflows released to pension expense were $20,000.
•The county transferred $5,000,000 in cash to the pension trust fund.

-The $300,000 in deferred outflows released during the year

A) Add to pension expense for fiscal 2021.
B) Add to pension expense for fiscal 2022.
C) Reduce pension expense for fiscal 2021.
D) Reduce pension expense for fiscal 2022.

Question 75

Use the following information to answer bellow Questions.
A county reports its defined benefit pensions for employees of governmental and proprietary funds on the government-wide financial statements. Here is information for fiscal 2021.
•The total pension liability, measured at the end of fiscal 2021, is $100,000,000, while the total pension liability, measured at the end of fiscal 2020, is $85,000,000.
•The net increase in deferred outflows related to pensions was $2,000,000, while deferred outflows released to pension expense were $300,000.
•The net increase in deferred inflows related to pensions was $150,000, while deferred inflows released to pension expense were $20,000.
•The county transferred $5,000,000 in cash to the pension trust fund.

-The $20,000 in deferred inflows released during the year

A) Add to pension expense for fiscal 2021.
B) Add to pension expense for fiscal 2022.
C) Reduce pension expense for fiscal 2021.
D) Reduce pension expense for fiscal 2022.

Question 76

Use the following information to answer bellow Questions.
A county reports its defined benefit pensions for employees of governmental and proprietary funds on the government-wide financial statements. Here is information for fiscal 2021.
•The total pension liability, measured at the end of fiscal 2021, is $100,000,000, while the total pension liability, measured at the end of fiscal 2020, is $85,000,000.
•The net increase in deferred outflows related to pensions was $2,000,000, while deferred outflows released to pension expense were $300,000.
•The net increase in deferred inflows related to pensions was $150,000, while deferred inflows released to pension expense were $20,000.
•The county transferred $5,000,000 in cash to the pension trust fund.

-Pension expense reported in the fiscal 2021 government-wide statement of activities is

A) $15,000,000.
B) $18,150,000.
C) $23,150,000.
D) $21,850,000.

Question 77

A county reports the following balances at June 30, 2021, its fiscal year-end, using full accrual accounting:
$\begin{array}{|l|r|r|}\hline &\text { Governmental }&\text { Business-type } \\\text { (in thousands) } &\text { activities }&\text { activities }\\\hline \text { Cash and cash equivalents } & \$ 50,000 & \$ 7,000 \\\hline \text { Receivables, net } & 10,500 & 4,500 \\\hline \text { Due from governmental funds } & -- & 3,000 \\\hline \text { Due from other governmental funds } & 400 & - \\\hline \text { Inventories } & 1,000 & 800 \\\hline \text { Prepaid expenses } & 250 & - \\\hline \text { Restricted assets: cash with fiscal agent } & 15,000 & 18,000 \\\hline \text { Capital assets, net } & 125,000 & 85,000 \\\hline \text { Deferred outflows of resources } & 8,000 & 3,000 \\\hline \text { Liabilities } & & 300 \\\hline \text { Accounts payable } & 5,000 & -- \\\hline \text { Due to other governmental funds } & 400 & -- \\\hline \text { Due to enterprise funds } & 3,000 & 700 \\\hline \text { Accrued interest payable } & 1,500 & 2,000 \\\hline \text { Customer deposits } & - & 40,000 \\\hline \text { Noncurrent liabilities } & 185,000 & 3,200 \\\hline \text { Deferred inflows of resources } & 500 & \\\hline\end{array}$ Additional information (in thousands):
1) $90,000 of noncurrent liabilities for governmental activities were used to acquire capital assets. The noncurrent liabilities for business-type activities were used to acquire capital assets.
2) The net position of governmental activities has the following restrictions: economic development, $21,000; public safety, $1,000; and human services, $450.
3) Business-type activities consist of a water utility. This fund has a total of $20,000 in net position restricted for bond covenants.
Required
Prepare the county's government-wide statement of net position as of June 30, 2021.

Question 78

Flathead County, Montana reports the following balances at June 30, 2021, its fiscal year-end, using full accrual accounting:
$\begin{array}{|l|c|c|}\hline \text { (in thousands) } & \begin{array}{c}\text { Governmental } \\\text { activities }\end{array} & \begin{array}{c}\text { Business-type } \\\text { activities }\end{array} \\\hline {\text { Assets }} \\\hline \text { Cash and cash equivalents } & \$ 44,100 & \$ 9,700 \\\hline \text { Receivables, net } & 2,500 & 19,300 \\\hline \text { Due from other governmental funds } & 200 & \\\hline \text { Due from other governments } & 1,550 & \text { - } \\\hline \text { Inventories } & 1,200 & - \\\hline \text { Capital assets, net } & 92,200 & 20,300 \\\hline \text { Assessments receivable } & 3,800 & - \\\hline \text { Deferred outflows of resources: pensions } & 11,800 & 200 \\\hline {\text { Liabilities }} \\\hline \text { Operating payables } & 5,000 & 300 \\\hline \text { Due to other governmental funds } & 200 & \\\hline \text { Due to other governments } & 185 & - \\\hline \text { Current portion of long-term capital liabilities } & 800 & - \\\hline \text { Current portion of compensated absences payable } & 2,750 & 140 \\\hline \text { Unearned revenue } & 315 & \text { - } \\\hline \text { Landfill closure postclosure liability } & - & 9,600 \\\hline \text { Noncurrent portion of long-term capital liabilities } & 9,800 & - \\\hline \text { Noncurrent portion of compensated absences payable } & 920 & 50 \\\hline \text { Noncurrent portion of net pension and OPEB liability } & 37,030 & 1,020 \\\hline \text { ferred inflows of resources: pension deferrals } & 2,350 & 5\\\hline\end{array}$ Additional information (in thousands):
1) The net position of governmental activities has the following restrictions: general government, $850; public health and safety, $12,800; capital projects, $5,800, and debt service $5,300.
2) Business-type activities consist of a solid waste facility. There are no restrictions on the facility's net position.
Required
a. Calculate total assets of governmental activities at June 30, 2021.
b. Calculate total net position of governmental activities and business-type activities at June 30, 2021.
c. Prepare the net position section of the government-wide statement of net position at June 30, 2021, in good form.
d. Flathead County reports deferred inflows and also deferred outflows related to pensions. Explain the nature of each balance and its treatment in future years.

Question 79

Dawson County has a general fund, several special revenue funds, and a water utility reported in an enterprise fund. Below is information for the year ended June 30, 2020 (in thousands):
$$\begin{array} { | l | r | } \hline \text { Property tax revenues } & \$ 60,000 \\\hline \text { Occupancy tax revenues } & 5,000 \\\hline \text { Unrestricted investment income } & 800 \\\hline \text { General government expenses } & 15,000 \\\hline \text { Public safety expenses } & 35,000 \\\hline \text { Education expenses } & 25,000 \\\hline \text { Transportation expenses } & 1,000 \\\hline \text { General government charges for services } & 2,000 \\\hline \text { Public safety charges for services } & 7,000 \\\hline \text { Education grants received } & 600 \\\hline \text { Water utility expenses } & 14,000 \\\hline \text { Water utility charges for services } & 16,000 \\\hline \text { Net position-governmental activities, beginning } & 10,000 \\\hline \text { Net position-business-type activities, beginning } & 20,000 \\\hline\end{array}$$ Required
Prepare a fiscal 2020 government-wide statement of activities for Dawson County, in good form.

Question 80

A county has the following governmental and business-type activity categories:
Governmental activities:
General government
Public safety
Economic development
Environmental protection
Education
Transportation
Interest on long-term debt
Business-type activities:
Water and sewer
The following information was obtained from the financial records of the county for the year ended June 30, 2021 (in thousands):
$$\begin{array} { | l | r | } \hline \text { July 1, 2020 net position-governmental activities } & \$ 69 \\\hline \text { July 1, 2020 net position-business-type activities } & 62,290 \\\hline \text { Expenses: } & \\\hline \text { General government } & 11,200 \\\hline \text { Public safety } & 27,200 \\\hline \text { Economic development } & 21,100 \\\hline \text { Environmental protection } & 8,900 \\\hline \text { Education } & 27,300 \\\hline \text { Transportation } & 690 \\\hline \text { Interest on long-term debt } & 4,230 \\\hline \text { Water and sewer } & 11,800 \\\hline \text { Grants and contracts received: } & \\\hline \text { Public safety } & 230 \\\hline \text { Economic development } & 5,360 \\\hline \text { Environmental protection } & 170 \\\hline \text { Education } & 2,345 \\\hline \text { Charges for services: } & \\\hline \text { General government } & 1,600 \\\hline \text { Public safety } & 4,700 \\\hline \text { Economic development } & 3,500 \\\hline \text { Environmental protection } & 2,050 \\\hline \text { Water and sewer } & 12,050 \\\hline \text { Property tax revenue } & 59,000 \\\hline \text { Sales and occupancy tax revenue } & 25,700 \\\hline \text { Other tax revenue } & 5,600 \\\hline \text { Unrestricted investment income-governmental activities } & 371 \\\hline \text { Unrestricted investment income-business-type activities } & 160 \\\hline\end{array}$$ Required
Prepare, in good form, the county's government-wide statement of activities for fiscal year 2021.