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

When using the modified approach to account for infrastructures,expenditures to extend the life of the infrastructure assets are not capitalized.

A government reported expenditures for infrastructure as follows: $18 million for improvements and additions; $20 million to extend the life of existing infrastructure; $17 million for general repairs. The cost of its infrastructure,excluding land,is $750 million,and the infrastructure has an estimated life of 50 years,on average. Which of the following would be the reported expense (in millions)under each of the following options?

Governmental fund-basis statements are prepared using the________,and must be converted to the ________ to be incorporated in the government-wide statements.

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

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

The difference between assets and liabilities in the government-wide statements is called Net Position.

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

GASB requires that general fixed assets acquired through General,special revenue or capital projects funds be included in the government-wide financial statements.

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

On April 1,2015,a local government issued bonds in the amount of $2,000,000. The bonds were issued at par and carried an interest rate of 5%,payable October 1 and April 1. 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 Position in the governmental funds column of the Statement of Activities,both for the fiscal year ended June 30,2015,the effect for the interest accrual only would be:

General long-term debt,to be paid out of resources of the government's taxing power,is reported in both the governmental fund Balance Sheet and the government-wide Statement of Net Position.

A government reported,in its government-wide Statement of Net Position: •assets of $82 million,including $40 million in capital assets (cost),with $12 million in accumulated depreciation,and •liabilities of $50 million,including long-term debt of $15 million related to capital asset acquisition. In addition,$4 million of cash was restricted for payment of debt service. The government's Unrestricted Net Position would be reported as:

The following entries were in the governmental funds. Required: Part A.What is the worksheet entry required to adjust beginning (or Position)in the 12/31/2015 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 12/31/2015? Assume interest for the year is due on 12/31 and the bond premium is amortized on the straight line basis.

For the depreciation of infrastructure…

The Statement of Net Position and Statement of Activities and Statement of Cash Flows are the only three statements for the government-wide financial statements.

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. -How much will the city report as Deferred Inflow - Property Taxes in its June 30,2015 government-wide Statement of Net Position?

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

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

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

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