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

A governmental fund Statement of Revenues,Expenditures,and Changes in Fund Balances reported expenditures of $30 million,including capital outlay expenditures of $5 million.Capital assets for that government cost $90 million,including land of $10 million.Depreciable assets are amortized over 20 years,on average.The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect a(an):

An example of a program revenue in the government-wide Statement of Activities would be property taxes.

Government-wide statements are prepared using the accrual basis; therefore,enterprise fund-basis statements need to be adjusted from their original modified accrual basis.

When converting from fund financial statements to government-wide statements,it is necessary to eliminate transfers that are between the categories of governmental activities and business-type activities.

Which of the following would be included in the Equity section of the Statement of Net Assets?

In its government-wide Statement of Net Assets,a government reported assets of $155 million,including $50 million in capital assets (net of depreciation),and liabilities of $80 million,including long-term debt of $60 million,$40 million of which was issued to acquire capital assets.In addition,$30 million was restricted for debt service and other purposes.The government's unrestricted net assets would be reported as:

Which of the following fund types is not included in the government-wide financial statements?

Internal service funds primarily serve governmental departments; therefore they are not incorporated into the business-type activities category of the government-wide statements.

GASB Statement No.34 states that general capital assets should not be reported as assets in governmental funds but should be reported in the governmental activities column of the government-wide statement of net assets.

The Village of Canandaigua determined that,as of July 1,2013,infrastructure assets estimated at $300 million were in place,with an estimated useful life of 25 years.During the year ended June 30,2014,expenditures were $7 million for the routine maintenance of infrastructure,$3 million to extend the life of existing infrastructure,and $12 million for infrastructure additions and improvements. Required: a)If the modified approach is used,what would be the amount charged to expense during the fiscal year ended June 30,2014.What amount would be capitalized? b)What amount would have been charged to expense if the modified approach were not used? What amount would be capitalized?

With regard to the government-wide statements,indicate the three categories of net assets that should be reported and describe what would be put into each category.

GASB requires that infrastructure be depreciated on the government-wide statements unless the government chooses to use the modified approach which expenses amounts expended to increase the life of infrastructure.

Internal Service Funds are most commonly included in the business-type activities category of the government-wide statements.

A government's Statement of Revenues,Expenditures,and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000.That statement also reflected expenditures for debt service in the amount of $3,000,000,including $2,600,000 for principal payments.Assuming no other changes,the effect,when moving from the change in fund balances in 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:

The difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation,is known as:

Internal service funds are most commonly reported in which section of the Government-wide financial statements?

Debt limit is the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time.

When preparing the government-wide statements,worksheet entries are made to add the balances of the fiduciary funds

A local government issued bonds and recorded the event by debiting Cash and crediting Other Financing Source - Proceeds of Bonds and Other Financing Source - Premium on Bonds.What is the worksheet entry when preparing the government-wide statements?

The reconciliations required to be presented on the face of the governmental fund financial statements or in separate schedule immediately after the fund financial statements include: