Exam 7: Capital Assets and Investments in Marketable Securities

Mariano County traded in a used pickup for a new pickup truck with a sticker price of $44,000.The old pickup had a fair value of $26,000,historical cost of $45,000,and accumulated depreciation of $18,000.The dealer took the old truck and $15,000 for the new truck.The new truck should be reported on the government-wide financial statements at

General capital assets are not reported in governmental funds because of the funds' measurement focus current financial resources).

For a government that elects to capitalize its works of art and similar assets,the appropriate entry for reporting in the government-wide financial statements when receiving a contribution of a work of art is

GASB standards require that depreciation be reported on all capital assets except

How should changes in the fair value of derivatives be reported in a government's financial statements?

Prior to the issuance of GASB Statement No.34,state and local governments provided virtually no information as to most of their infrastructure.

The city of Maine Creek acquired a used front-end loader from a road contractor for use at the city landfill which is accounted for in an enterprise fund).The loader had a fair value of $54,000 and a historical cost of $90,000.The city paid the contractor $50,000 for the loader.At what amount should be front-end loader be reported in the government-wide financial statements?

For a government that elects NOT to capitalize its works of art and similar assets,the appropriate entry for reporting in the government-wide financial statements when receiving a contribution of a work of art is

The risk that the issuer or other party to an investment will not fulfill its obligation is

Surfer City sold a used police car.The police car had a historical cost of $25,000,a fair value of $18,000,and was sold for $10,000.Assuming that the city maintains its books and records in a manner to facilitate the preparation of the fund financial statements,what is the appropriate entry in the general fund to record this sale?

Unlike businesses,governments should not capitalize interest on general capital assets that they construct themselves.

Governments invest in marketable securities for much the same reason that businesses do-to earn a return on cash that otherwise would be unproductive.

With regard to accounting for infrastructure,which of the following is true?

What amount of gain/loss should be reported in the general fund financial statements?

Governments must disclose information about investment risks in which of the following categories?

Governments should depreciate general capital assets,such as police cars and snow plows,in governmental funds.

At what value should the new truck be reported in the government-wide financial statements?

Which of the following are NOT examples of derivatives?

Disclosures about investment risks apply

A government may record long-term assets in which of the following funds?