Exam 8: Government-Wide Statements, Capital Assets, Long-Term Debt

A donated collection is not required to be capitalized.If a government decides not to capitalize them,how will they be accounted for at the time of the donation?

Which of the following statements is not correct with respect to the preparation of government-wide statements?

A government reported an "other financing source" in the amount of $750,000,related to the sale of land in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances.The land had a cost of $275,000.The adjustment in the reconciliation,when moving from the governmental Funds Statement of Revenues,Expenditures,and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a(an):

When converting from fund basis reporting to government-wide reporting,which of the following would require an adjustment?

GASB requires that general fixed assets acquired through General,special revenue or capital projects funds be included in the government-wide financial statements.

Governments have the option to capitalize infrastructure assets in the governmental funds' fund-basis financial statements.

When converting from governmental fund financial statements to the governmental activities column of the government-wide statements,the proceeds from the sale of capital assets which were listed as an "other financing source" are eliminated and the gain or loss is recorded when preparing the government-wide statements.

Assume a government reported $300,000 in capital outlay expenditures in the governmental fund Statement of Revenues,Expenditures,and Changes in Fund Balances.Secondly,assume depreciation of capital assets amounted to $250,000,in the governmental activities column in the Statement of Activities.Those adjustments would cause an increase of $50,000 when preparing the reconciliation between the change in governmental fund balances to the change in net assets of governmental activities in the Statement of Activities.

A government reported,in its government-wide Statement of Net Assets: •assets of $81 million,including $40 million in capital assets (cost),with $12 million in accumulated depreciation,and •liabilities of $50 million,including long-term debt of $15 million related to capital asset acquisition. In addition,$4 million of cash was restricted for payment of debt service.The government's unrestricted net assets would be reported as:

When preparing government-wide financial statements,the modified accrual based governments funds are adjusted.List 5 events involving long-term debt that are likely to require adjustments.

A company has bonds outstanding at the beginning of the current year.The debit in the worksheet entry to bring these on to the books would be to:

Governments may choose either to depreciate infrastructure assets or use the modified approach.

A government reported the following transfers in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances: (1)a transfer from the General Fund to a special revenue fund in the amount of $400,000; (2)a transfer from the General Fund to an internal service fund in the amount of $300,000; (3)a transfer from the General Fund to a permanent fund in the amount of $200,000.The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:

Governmental fund-basis statements are prepared using the________,and must be converted to the ________ to be incorporated in the government-wide statements.

Which of the following is true regarding the government-wide Statement of Net Assets?

The City of Greystone maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements.You are to prepare,in journal form,worksheet adjustments for each of the following situations: A.The City levied property taxes for the current fiscal year in the amount of $8,000,000.At year-end,$720,000 of the taxes had not been collected.It was estimated that $380,000 of that amount would be collected during the 60 days after the end of the fiscal year and that $200,000 would be collected after that time and the balance would be uncollectible.The City had recognized the maximum of property taxes allowable under modified accrual accounting. B.$187,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year. C.In addition to the expenditures allowed under modified accrual accounting,the city computed that an additional $68,000 should be accrued for compensated absences. D.In the Statement of Revenues,Expenditures,and Changes in Fund Balances,General Fund transfers out included $400,000 to a debt service fund and $270,000 to a special revenue fund.General Fund transfers in included $1,000,000 from an enterprise fund.

Which of the following would not be determined to result in asset impairment under GASB Statement 42?

Capital assets acquired through proprietary funds are reported in both the Statement of Net Assets of those funds and the government-wide Statement of Net Assets.

General long-term debt,to be paid out of resources of the government's taxing power,is reported in both the governmental fund Balance Sheet and the government-wide Statement of Net Assets.

A government's Statement of Revenues,Expenditures,and Changes in Fund Balances reported proceeds of bonds in the amount of $1,000,000.It also reported expenditures for bond principal in the amount of $400,000.The last interest payment was on the last day of the fiscal year.The reconciliation from the governmental funds changes in fund balances to the governmental activities change in net assets would reflect a(an):