Question 1

What are the five fund balance categories established by GASB and why did GASB establish these categories?

Accepted Answer

GASB established five fund balance categ

Question 2

Government-wide financial statements benefit users by allowing them to do all of the following except:

Accepted Answer

A)  Determine whether the government's overall financial position improved or deteriorated during the reporting period. 
B)  Understand the cost of providing services to the citizenry. 
C)  See how the government finances its programs. 
D)  Identify the government official responsible for managing each fund. 
E)  Understand the extent to which the government has invested in capital assets. 
A)  Determine whether the government's overall financial position improved or deteriorated during the reporting period. 
B)  Understand the cost of providing services to the citizenry. 
C)  See how the government finances its programs. 
D)  Identify the government official responsible for managing each fund. 
E)  Understand the extent to which the government has invested in capital assets.

Question 3

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the governmental fund financial statements?

Accepted Answer

A)  The General Fund. 
B)  An Expendable Trust Fund. 
C)  A Capital Projects Fund. 
D)  An Agency Fund. 
E)  A Permanent Fund. 
A)  The General Fund. 
B)  An Expendable Trust Fund. 
C)  A Capital Projects Fund. 
D)  An Agency Fund. 
E)  A Permanent Fund.

Question 4

The city council of a city government (the highest-level of decision-making authority) voted to use money in the future to repair parking garages in the downtown area. How is the fund balance designated to reflect that decision?

Accepted Answer

A)  Committed. 
B)  Nonspendable. 
C)  Assigned. 
D)  Unassigned. 
E)  Restricted. 
A)  Committed. 
B)  Nonspendable. 
C)  Assigned. 
D)  Unassigned. 
E)  Restricted.

Question 5

On August 21, 2021, Carbondale City transferred $150,000 from one fund to another fund to cover major repairs to the town hall building.Required:Prepare all the required journal entries and identify the fund in which each entry was recorded for the governmental fund financial statements.

Accepted Answer

The answer of On August 21, 2021, Carbondale City transferred...

Question 6

The school system had some brochures printed by a local printing service on September 22, 2021. The school system received an invoice showing an amount of $1,730 for the printing, but the bill is not due until October 15, 2021.Required:(A) Prepare the required journal entry in the general fund for the governmental fund financial statements.(B) Prepare the required journal entry for the government-wide financial statements.

Accepted Answer

The answer of The school system had some brochures printed...

Question 7

How do the balance sheet and statement of revenues, expenditures, and changes in fund balances of governmental funds differ from the financial statement presentation for the governmental activities in the government-wide statement of net assets and statement of activities?(1) Internal service funds are not included in the fund financial statements of governmental funds but could be reported in the governmental activities of government-wide financial statements.(2) The economic resources measurement basis is used for fund financial statements of governmental funds and the current financial resources measurement basis is used for governmental activities in the government-wide financial statements.(3) Modified accrual accounting is used for fund financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government-wide financial statements.(4) The financial statements of governmental funds for fund financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.

Accepted Answer

A)  1 and 2. 
B)  2, 3, and 4. 
C)  1, 2, and 3. 
D)  1 and 3. 
E)  1, 2, 3, and 4. 
A)  1 and 2. 
B)  2, 3, and 4. 
C)  1, 2, and 3. 
D)  1 and 3. 
E)  1, 2, 3, and 4.

Question 8

The term "current financial resources" refers to

Accepted Answer

A)  Those assets that can quickly be converted into cash. 
B)  Assets that are available to be used for current expenditures. 
C)  The government's current assets and current liabilities. 
D)  The current value of all net assets owned by the governmental unit. 
E)  Financial resources used to provide electricity to local citizens. 
A)  Those assets that can quickly be converted into cash. 
B)  Assets that are available to be used for current expenditures. 
C)  The government's current assets and current liabilities. 
D)  The current value of all net assets owned by the governmental unit. 
E)  Financial resources used to provide electricity to local citizens.

Question 9

Kurt City makes a transfer of $120,000 from the General Fund to the Debt Service Fund.Required:Prepare the required journal entries and identify the funds in which they are recorded.

Accepted Answer

In General

Question 10

Prepare the journal entry and identify the fund to record Palmer City's purchase order of two trucks for $150,000 and identify the fund in which the entry is recorded.

Accepted Answer

The answer of Prepare the journal entry and identify the...

Question 11

Bay City received a federal grant to provide health care services to low income mothers and children. When should the revenues be recognized?

Accepted Answer

A)  As health care services are provided. 
B)  When the awarding of the grant is announced. 
C)  When the grant money is received. 
D)  At the end of Bay City's fiscal year. 
E)  When the grant money is receivable. 
A)  As health care services are provided. 
B)  When the awarding of the grant is announced. 
C)  When the grant money is received. 
D)  At the end of Bay City's fiscal year. 
E)  When the grant money is receivable.

Question 12

A $960,000 bond was issued on October 1, 2021 to build a new road. The bonds carried a 7% interest rate and are due in 10 years.Required:(A.) Prepare the required journal entry in the capital projects fund on October 1 for the governmental fund financial statements.(B.) Prepare the required journal entry for the government-wide financial statements.

Accepted Answer

The answer of A $960,000 bond was issued on October...

Question 13

What is the purpose of government-wide financial statements?

Accepted Answer

Government-wide financial statements pre

Question 14

For determining revenue recognition, eligibility requirements for government-mandated nonexchange transactions and voluntary nonexchange transactions are categorized into four general classifications including all of the following except:

Accepted Answer

A)  Required characteristics of the recipients. 
B)  Time requirements. 
C)  Reimbursement. 
D)  Contingencies. 
E)  Refunding. 
A)  Required characteristics of the recipients. 
B)  Time requirements. 
C)  Reimbursement. 
D)  Contingencies. 
E)  Refunding.

Question 15

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

Accepted Answer

A)  At the end of each accounting period. 
B)  When payment is due within one fiscal year. 
C)  When it reduces current financial resources. 
D)  When cash is available to pay the interest. 
E)  When the interest is incurred. 
A)  At the end of each accounting period. 
B)  When payment is due within one fiscal year. 
C)  When it reduces current financial resources. 
D)  When cash is available to pay the interest. 
E)  When the interest is incurred.

Question 16

What are the broad classifications of funds for a governmental entity such as a city?

Accepted Answer

A)  General, governmental, and trust funds. 
B)  Governmental, proprietary, and fiduciary funds. 
C)  Revenue, trust, and governmental funds. 
D)  Enterprise, revenue, and fiduciary funds. 
E)  Governmental, agency, and enterprise funds. 
A)  General, governmental, and trust funds. 
B)  Governmental, proprietary, and fiduciary funds. 
C)  Revenue, trust, and governmental funds. 
D)  Enterprise, revenue, and fiduciary funds. 
E)  Governmental, agency, and enterprise funds.

Question 17

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

Accepted Answer

A)  Government-wide financial statements report a government's activities and financial position as a whole. 
B)  The government-wide financial statement approach helps users make long-term evaluations of the financial decisions and stability of the government. 
C)  Government-wide financial statements focus on the short-term instead of the long-term. 
D)  Government-wide financial statements assess the finances of the government in its entirety, including the year's operating results. 
E)  The measurement focus of government-wide financial statements is on all economic resources and utilizes accrual accounting. 
A)  Government-wide financial statements report a government's activities and financial position as a whole. 
B)  The government-wide financial statement approach helps users make long-term evaluations of the financial decisions and stability of the government. 
C)  Government-wide financial statements focus on the short-term instead of the long-term. 
D)  Government-wide financial statements assess the finances of the government in its entirety, including the year's operating results. 
E)  The measurement focus of government-wide financial statements is on all economic resources and utilizes accrual accounting.

Question 18

Trapper City issued 30-year bonds for the purpose of building a new City Hall. The proceeds of the bonds are deposited in the General Fund. For the governmental fund financial statements, in what fund will Bonds Payable appear?

Accepted Answer

A)  General Fund. 
B)  Internal service fund. 
C)  Permanent Fund. 
D)  Debt Service Fund. 
E)  Bonds Payable do not appear in governmental fund financial statements. 
A)  General Fund. 
B)  Internal service fund. 
C)  Permanent Fund. 
D)  Debt Service Fund. 
E)  Bonds Payable do not appear in governmental fund financial statements.

Question 19

When a city collects admission fees from citizens who use the public swimming pool, the money should be recorded in

Accepted Answer

A)  The general fund. 
B)  An enterprise fund. 
C)  A capital projects fund. 
D)  An agency fund. 
E)  An internal service fund. 
A)  The general fund. 
B)  An enterprise fund. 
C)  A capital projects fund. 
D)  An agency fund. 
E)  An internal service fund.

Question 20

What are the two proprietary fund types?

Accepted Answer

Internal s

What are the five fund balance categories established by GASB and why did GASB establish these categories?

Government-wide financial statements benefit users by allowing them to do all of the following except:

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the governmental fund financial statements?

The city council of a city government (the highest-level of decision-making authority) voted to use money in the future to repair parking garages in the downtown area. How is the fund balance designated to reflect that decision?

On August 21, 2021, Carbondale City transferred $150,000 from one fund to another fund to cover major repairs to the town hall building.Required:Prepare all the required journal entries and identify the fund in which each entry was recorded for the governmental fund financial statements.

The term "current financial resources" refers to

Kurt City makes a transfer of $120,000 from the General Fund to the Debt Service Fund.Required:Prepare the required journal entries and identify the funds in which they are recorded.

Prepare the journal entry and identify the fund to record Palmer City's purchase order of two trucks for $150,000 and identify the fund in which the entry is recorded.

Bay City received a federal grant to provide health care services to low income mothers and children. When should the revenues be recognized?

What is the purpose of government-wide financial statements?

For determining revenue recognition, eligibility requirements for government-mandated nonexchange transactions and voluntary nonexchange transactions are categorized into four general classifications including all of the following except:

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

What are the broad classifications of funds for a governmental entity such as a city?

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

Trapper City issued 30-year bonds for the purpose of building a new City Hall. The proceeds of the bonds are deposited in the General Fund. For the governmental fund financial statements, in what fund will Bonds Payable appear?

When a city collects admission fees from citizens who use the public swimming pool, the money should be recorded in

What are the two proprietary fund types?

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

Filters

Exam 16: Accounting for State and Local Governments, Part I

What are the five fund balance categories established by GASB and why did GASB establish these categories?

Government-wide financial statements benefit users by allowing them to do all of the following except:

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the governmental fund financial statements?

The city council of a city government (the highest-level of decision-making authority) voted to use money in the future to repair parking garages in the downtown area. How is the fund balance designated to reflect that decision?

On August 21, 2021, Carbondale City transferred $150,000 from one fund to another fund to cover major repairs to the town hall building.Required:Prepare all the required journal entries and identify the fund in which each entry was recorded for the governmental fund financial statements.

The term "current financial resources" refers to

Kurt City makes a transfer of $120,000 from the General Fund to the Debt Service Fund.Required:Prepare the required journal entries and identify the funds in which they are recorded.

Prepare the journal entry and identify the fund to record Palmer City's purchase order of two trucks for $150,000 and identify the fund in which the entry is recorded.

Bay City received a federal grant to provide health care services to low income mothers and children. When should the revenues be recognized?

What is the purpose of government-wide financial statements?

For determining revenue recognition, eligibility requirements for government-mandated nonexchange transactions and voluntary nonexchange transactions are categorized into four general classifications including all of the following except:

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

What are the broad classifications of funds for a governmental entity such as a city?

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

Trapper City issued 30-year bonds for the purpose of building a new City Hall. The proceeds of the bonds are deposited in the General Fund. For the governmental fund financial statements, in what fund will Bonds Payable appear?

When a city collects admission fees from citizens who use the public swimming pool, the money should be recorded in

What are the two proprietary fund types?

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

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