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

The City of Smithfield levied property taxes in and for 2014 in the amount of $200 million.It is estimated that 1% will be uncollectible.During 2014,$180 million was collected,and $12 million was collected during the next 60 days.Smithfield recognizes the maximum possible property taxes in its governmental funds.The adjustment,when moving from the governmental funds changes in fund balances to the governmental activities change in net assets would be:

Fiduciary activities are reported in a separate column of the government-wide statements.

A government incurred expenditures for its infrastructure as follows: $20 million for general repairs; $22 million to extend the life of existing infrastructure; $21 million for improvements and additions.If depreciation is to be charged,the amount would be $23 million.Which of the following would be true?

Few adjustments to internal service funds are necessary when converting from proprietary funds statements to the government-wide statements as internal service funds are generally reported as business-type activities in the government-wide statements.

A government incurred expenses for its infrastructure as follows: $20 million for general repairs; $18 million to extend the life for existing infrastructure; and $15 million for additions and betterments.The government chooses to use the modified approach to record infrastructure.The infrastructure has a basis of $400 million and would be depreciated over a 40 year life,if depreciation were charged.The amount that would be shown as expense in the Statement of Activities would be:

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

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

With regard to the government-wide statements,indicate the measurement focus and basis of accounting that should be employed.

The total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time is known as:

What would be the appropriate journal entry to adjust to the accrual basis of accounting for depreciation on general capital assets related to prior years?

GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting.

When using the modified approach to account for infrastructures,expenditures to extend the life of the infrastructure assets are capitalized.

Which of the following is not a reconciliation required by GASB?

A local government purchased a building and recorded the event by debiting Expenditures - Capital Outlay and crediting Cash.What would be the worksheet entry to prepare the government-wide statements?

A government's Statement of Revenues,Expenditures,and Changes in Fund Balances reflected expenditures for debt service in the amount of $12,000,000,including $7,000,000 for interest.It also reflected proceeds of bonds in the amount of $4,000,000.No interest accruals were involved.When moving from the changes in fund balances reported for the governmental funds to the change in net assets for governmental activities,the net change would be:

GASB specifically requires interest during construction in governments' funds to be capitalized in the government-wide statements.

The City of Charlotte reported property tax revenues in 2014 in the amount of $10 million.The deferred property taxes reported in the General Fund's balance sheet was $ 300,000 on December 31,2013 and was $ 375,000 on December 31,2014.During 2014,$9,000,000 was collected.What amount should the city report for Property Tax Revenue in its year ended December 31,2014 government-wide Statement of Activities?

The following entries were in the governmental funds. Required: Part A.What is the worksheet entry required to adjust beginning net assets in the 12/31/2014 government-wide financial statements for long term debt? Part B.What are the worksheet entries to adjust for current year activity in long-term debt for the year ended 12/31/2014? Assume interest for the year is due on 12/31 and the bond premium is amortized on the straight line basis.

A local government recorded the payment of bond principal by debiting Expenditure: bond principal and crediting Cash.What is the worksheet entry when preparing the government-wide statements?

The difference between assets and liabilities in the government-wide statements is called fund balance.