Exam 7: Capital Assets and Investments in Marketable Securities

Governments do not have to depreciate infrastructure assets if they can demonstrate they are preserving them at a specified condition level.

General fixed assets are excluded from governmental funds because

The city of Rapid Creek acquired a used front-end loader from a road contractor for use at the 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?

Governments are prohibited from entering into reverse repurchase agreements.

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

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

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

General capital assets are excluded from governmental funds, themselves, because of the funds' measurement focus current financial resources.

Lakeview School District, a governmental entity, received 10 computers from Computer Hut, a local computer firm.The computers were a donation to the District by Computer Hut.The cost to Computer Hut for each computer is $2,500.The retail value of each computer is $3,000.Assuming that the District maintains its books and records in a manner that facilitates the preparation of the fund financial statements, what is the appropriate entry in the General Fund to record this donation?

Use the following information to answer questions Rapid City traded in a used pickup for a new pickup with a sticker price of $44,000.The old truck had a historical cost of $40,000, accumulated depreciation of $16,000, and a fair value of $27,000.The dealer took the old truck and $13,000 cash for the new truck. -What is the amount of gain/loss that should be reported in the General Fund financial statements?

Which of the following is NOT an example of a derivative?

General capital assets are distinguished from the capital assets of proprietary funds and fiduciary funds.

To elect not to capitalize works of art and similar assets, a government must see that the assets meet all of the following criteria EXCEPT

In governmental funds, the capital asset costs are reported as expenses when the assets are acquired.

Use the following information to answer questions Rapid City traded in a used pickup for a new pickup with a sticker price of $44,000.The old truck had a historical cost of $40,000, accumulated depreciation of $16,000, and a fair value of $27,000.The dealer took the old truck and $13,000 cash for the new truck. -At what value should the new truck be reported in the government-wide financial statements?

Disclosures about investment risk apply

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

If a government elects to capitalize certain works of art and similar assets, which of the following statement is true relative to depreciation on those assets?

A governmental entity may record long-term assets in which of the following funds or account groups?

Jefferson County bought a new backhoe using General Fund cash.When the asset was acquired, what was the appropriate entry that was made in the General Fund, assuming that the entity maintains its books and records in a manner to facilitate the preparation of fund financial statements?