Exam 10: Fiduciary Funds and Permanent Funds

The Schedule of Changes in Long-Term Obligations contains an account Net Pension Obligation.Which of the following describes the event that gave rise to this account?

Which of the following would NOT be accounted for in a fiduciary fund of a governmental entity?

Citizens within a defined geographic area of Hill City created a special assessment district to facilitate the construction of sidewalks.Hill City was responsible for overseeing the entire construction project.Hill City issued bonds in its own name to pay the contractor for the construction.However, Hill City was not responsible in any manner for the bonds.The bonds were secured by the special assessments that are levied against properties within the special assessment district.Collections of special assessments would be recorded in which of the following funds of Hill City?

A plan's unfunded actuarially accrued liability is the excess of the:

Use the following information to answer Questions In the current year, the City of Katerah earned $24,000 on the principal of a private-purpose trust fund but disbursed only $20,000. -During the current year the private-purpose trust fund will recognize, related to the cash outflow:

Fiduciary funds are excluded from the government-wide financial statements.

During the fiscal year ended December 31, 2010, the Highland City General Fund contributed $60 million to a defined benefit pension plan for its employees.On February 27, 2011, Highland made an additional $3 million contribution related to the 2010 pension contribution requirements.The actuarially determined contribution requirement for 2010 is $65 million.The amount of pension expenditure recognized by Highland City General Fund for 2010 should be:

The concept of major versus nonmajor funds does not apply to permanent funds, as it does to governmental and proprietary funds.

At the beginning of the year, the permanent fund of Rapid City had an investment portfolio with a historical cost of $300,000 and a fair value of $330,000.There were no purchases or sales of securities during the year.At year end the portfolio had a fair value of $360,000.At the end of the year Rapid City will account for this increase in fair value in which of the following ways?

The fiduciary fund financial statements report contain

The primary financial statements for a government-sponsored pension plan are:

In previous years, Center City had received a $400,000 gift of cash and investments.The donor had specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested.During the current year, the earnings from this gift were $24,000.The earnings from this gift should generally be considered revenue to which of the following funds?

In which of the following funds would Net Pension Obligation be most likely to appear?

In which of the following funds would a government report depreciation expense?

What basis of accounting is used to account for transactions of a governmental private-purpose trust fund?

Use the following information to answer Questions Previously a local charity received a $1 million gift, the income from which was restricted to support activities for senior citizens.During the current year the endowment earned $40,000 of interest revenues, of which the charity designated $30,000 to support senior citizen activities. -On its year-end statement of financial position, the charity would report temporarily restricted net assets of:

Use the following information to answer Questions In the current year, the City of Katerah earned $24,000 on the principal of a private-purpose trust fund but disbursed only $20,000. -During the current year the private-purpose trust fund will recognize, related to earnings:

The City of Highland Hills receives a federal grant to assist in nutrition programs for its senior citizens.The City will select the contractors that will provide meals and approve the participants in the program.The proceeds of this grant should be accounted for in which of the following funds of the City?

During the year, a state-owned university received a $5 million gift.The donor specified that the principal of the gift must be held intact for 3 years, but the earnings from the gift can be used to support technology improvements in the College of Business.At the end of the 3 years, the donor together with the University President and the College Dean will decide how the $5 million gift can be used.The University will report the gift in what type of fund?

A wealthy citizen provided in her will for a gift of cash and other assets to the City.Her will specified that the gift was to be kept intact and that the earnings from the gift were to be used to support public parks.At the time of the donation, the gift had a book value in the hands of the donor of $300,000 and a fair value of $500,000.When recording this gift the City would credit