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

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

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

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

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

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

Internal service funds provide services to governmental departments; therefore they are incorporated into the business-type activities category of the government-wide statements.

GASB standards require a reconciliation from fund financial statements to government-wide financial statements.

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

Internal Service Funds are most commonly incorporated into the governmental activities category of the government-wide statements.

When preparing the government-wide statements,an entry is required to record depreciation expense on general capital assets

The City of Smithfield levied property taxes in and for 2015 in the amount of $300 million. It is estimated that 1% will be uncollectible. During 2015,$280 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 Position would be:

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

The following data applies to the next three questions: The City of Charlestown levied property taxes in the amount of $10,000,000. It is estimated that 2% will not be collected. The taxes were levied July 1, 2014 for the fiscal year ended June 30, 2015. During the year ended June 30, 2015, $8,900,000 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, 2015, and $180,000 will never be collected. -When preparing the government-wide financial statements,how much property tax revenue should be recognized for the year ended June 30,2015?

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?

Which of the following is true regarding the government-wide statements?

The government-wide statements do not include a government-wide Statement of Cash Flows.

The City of Henderson reported a change in fund balances of $2,267,000 in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances for the year ended December 31,2015. 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 Position in the governmental column in the government-wide Statement of Activities for the year ended December 31,2015.

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

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

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