Exam 7: Capital Assets and Investments in Marketable Securities

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

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

The risk that changes in interest rates will adversely affect the fair value of an investment is

Fair value accounting is required for investments in:

In governmental funds, the costs of capital assets are reported as expenses and capitalized when the assets are acquired.

Which of the following are NOT examples of derivatives?

For governments, a capital asset is considered impaired

GASB has no authority to set standards for the investment practices of governments.

What is "deferred maintenance?" What is its possible role in government financial reporting?

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?

The objectives of financial reporting for capital assets should be to provide information

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

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

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

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?

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 amount of gain or loss that should be recognized on this transaction in the general fund financial statements is:

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

Hilltop School District receives a donation of ten computers from Computer Hut, a local computer firm. The cost to Computer Hut of 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?

Which of the following is NOT a benefit to cities of participating in their state's investment pool?

Which of the following are NOT infrastructure assets?