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

Assume a government reported Other Financing Sources - Proceeds of Bonds in the amount of $1,000,000 in the governmental fund Statement of Revenues,Expenditures,and Changes in Fund Balances.When preparing the reconciliation from the changes in fund balances in that statement to the changes in net assets in the governmental funds column in the Statement of Activities,an increase of $1,000,000 would be entered.

Under which of the following circumstances would an asset be considered impaired?

Enterprise funds are reported in the business-type activities column of the government-wide statements.

When converting fund financial records to government-wide financial statements,worksheet entries are made to eliminate all of the following accounts expect:

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

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

Using the worksheet approach,general (governmental)long term assets and long term debt have a balance of zero until the worksheet entries are made.

A governmental fund's Statement of Revenues,Expenditures,and Changes in Fund Balances reported expenditures for capital outlay in the amount of $5,000,000.Capital assets for that government cost $110,000,000,including $15,000,000 in land.Depreciable assets are amortized over 20 years,on average.The reconciliation from the governmental funds changes in fund balances to the governmental activities change in net assets would reflect a(an):

Which of the following would not be an adjustment for long-term debt when preparing government-wide financial statements?

When preparing the government-wide statements,a worksheet entry is required to eliminate the current period expenditures for capital outlay and record those expenditures as capital assets

Which of the following would be considered a program revenue in the Statement of Activities of a local government?

In addition to the fund basis statement,GASB Statement 34 requires government-wide statements that are prepared using the accrual basis and the current financial resources measurement focus.

The City of Henderson reported a change in fund balances of $2,762,000 in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances for the year ended December 31,2014.In addition,the following information is relevant: A.Capital outlay expenditures amounted to $8,755,000 in the modified accrual statement.General government capital assets amounted to $90,000,000,excluding land and had an average life of 20 years. B.The modified accrual statement reported proceeds from the sale of land in the amount of $500,000.The land had a basis of $390,000. C.Property taxes had been levied in the amount of $10,000,000.It was estimated that 3% would never be collected,that $500,000 would be collected within 60 days of year-end,and that $217,000 would be collected more than 60 days from year-end.The City had recognized the maximum permitted under modified accrual accounting. D.$205,000 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. E.The modified accrual statement reflected debt service expenditures in the amount of $500,000 for interest and $612,000 for principal.No adjustment was necessary for interest accruals at year-end. F.Long term compensated absences liabilities increased $120,000 from the previous year. Required: Prepare a reconciliation from the change in fund balances reported above to the change in net assets in the governmental column in the government-wide Statement of Activities for the year ended December 31,2014.

A government had the following transfers reported in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances: (1)a transfer from the General Fund to a debt service fund in the amount of $l,100,000; (2)a transfer from the General Fund to an enterprise fund in the amount of $1,300,000; and (3)a transfer from the General Fund to a special revenue fund in the amount of $500,000.The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:

The governmental funds report a total of $2,000,000 Transfers In and $1,500,000 Transfers Out.To consolidate governmental activities what amount will be eliminated from the Transfers In and Transfers Out accounts among the governmental funds?

The following data applies to the next three questions: The City of Charlestown levied property taxes in the amount of $9,000,000. It is estimated that 2% will not be collected. The taxes were levied July 1, 2013 for the fiscal year ended June 30, 2014. During the year ended June 30, 2014, $7,900,000 in property taxes were collected from this levy. It is estimated that $620,000 will be collected during the next 60 days, $300,000 will be collected more than 60 days after June 30, 2014, and $180,000 will never be collected. -When preparing the General Fund financial statements,how much property tax revenue should be recognized from this levy for the year ended June 30,2014?

Which of the following adjustments would be made when moving from the governmental funds balance sheet to the governmental activities column in the government-wide Statement of Net Assets?

Where in the basic financial statements,in most cases,would one find internal service activities reported?

Which of the following is considered a source of general revenue in the Government-wide Statement of Activities?

To qualify as a collection,a donated or purchased item must meet all of the following conditions except: