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

When converting from the enterprise funds Statement of Net Assets to the government-wide Statement of Net Assets (government-wide statements),it is necessary to add fixed assets and to deduct long-term debt.

A local government recorded the sale of a capital asset at a gain by recording a debit to cash and credit to proceeds of sale of capital asset.What is the worksheet entry when preparing the government-wide statements?

Governments must capitalize infrastructure assets in the government-wide statements

Which of the following is not true regarding infrastructure assets?

When preparing government-wide financial statements,the modified accrual based governments funds are adjusted.List 4 events involving capital assets that are likely to require adjustments.

The City of Casper levied property taxes for 2014 in the amount of $8,000,000.By the end of the year,$7,300,000 had been collected.It was estimated that $400,000 would be collected during the next 60 days of 2015 and that $240,000 would be collected after that and the remainder would be uncollectible.The City has a policy of recognizing the full amount possible for property taxes.Which of the following statements is true?

Which of the following would not need to be addressed/adjusted in compiling the government-wide statements?

An asset may be considered impaired if either the decline in the service utility is unexpected or the amount of the decline in service utility is large.

When preparing government-wide statements,depreciation expense must be eliminated.

In addition to a Statement of Net Assets,which of the following are government-wide statements?

Identify and describe the required supplementary information schedules that must be prepared when using the modified approach.

Which of the following is not required to convert from the modified accrual basis to the accrual basis in preparing the government-wide statements?

Which of the following is true concerning infrastructure assets?

What conditions must be satisfied in order to use the modified approach for recording infrastructure?

Which of the following items are added to government-wide financial statements through worksheet journal entries?

If an Internal Service Fund has positive operating income,the worksheet entry to add the Internal Service Fund to governmental activities would include a:

Which of the following is true regarding revenue recognition for sales taxes,when reporting in the government-wide statements?

The difference between assets and liabilities in the government-wide statements is called_________.

Which of the following is true regarding the reporting of general capital assets by state and local governments?

When preparing government-wide financial statements,the modified accrual basis governmental funds are adjusted for all of the following events except?