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

When preparing government-wide financial statements,the modified accrual based governments funds are adjusted. List 5 events involving long-term debt that are likely to require adjustments.

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 is not required to convert from the modified accrual basis to the accrual basis in preparing the government-wide statements?

Debt margin is the difference between the amount of debt limit outstanding and the amount of indebtedness allowed by law.

A donated collection is not required to be capitalized. If a government decides not to capitalize them,how will they be accounted for at the time of the donation?

A government's Statement of Revenues,Expenditures,and Changes in Fund Balances reported proceeds of bonds in the amount of $1,800,000. It also reported expenditures for bond principal in the amount of $400,000. The last interest payment was on the last day of the fiscal year. The reconciliation from the governmental funds changes in fund balances to the governmental activities change in Net Position would reflect a(an):

The following balances exist at year end within the governmental activities of a government unit: Transfers In: 145,000 Transfers Out: 115,000 When compiling the government-wide financial statements,the journal entry to eliminate the transfer activity will include:

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 Position for governmental activities in the Statement of Activities would be a:

Governments must capitalize infrastructure assets in the government-wide statements

The following information is available for the preparation of the government-wide financial statements for the City of Fishersville for the year ended June 30,2015: Required: From the information given above,prepare,in good form,a Statement of Activities for the City of Fishersville for the year ended June 30,2015. Fishersville has no component units.

An example of a program revenue in the government-wide Statement of Activities would be parks and recreation fees.

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

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 Position.

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 $20,000,000 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 Position would reflect a(an):

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?

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 position in the governmental funds column in the Statement of Activities,an increase of $1,000,000 would be entered.

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?

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

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.

The Village of Canandaigua determined that,as of July 1,2014,infrastructure assets estimated at $375 million were in place,with an estimated useful life of 25 years. During the year ended June 30,2015,expenditures were $9 million for the routine maintenance of infrastructure,$3 million to extend the life of existing infrastructure,and $15 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 30,2015. 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?