Question 1

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

Accepted Answer

A)  Program revenues include charges for services, operating grants and contracts, capital grants and contracts, and taxes levied for specific purposes. 
B)  The accrual basis of accounting is used to calculate revenues and expenses. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Program revenues include charges for services, operating grants and contracts, capital grants and contracts, and taxes levied for specific purposes. 
B)  The accrual basis of accounting is used to calculate revenues and expenses. 
C)  Both of the above. 
D)  Neither of the above.

Question 2

A government reported an other financing source in the amount of $900,000 related to the sale of land in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances. The land had a cost of $400,000. The amount that would be reported in the government-wide Statement of Activities would be:

Accepted Answer

A)  A gain of $1,300,000. 
B)  A gain of $ 900,000. 
C)  A gain of $ 500,000. 
D)  A gain of $ 400,000. 
A)  A gain of $1,300,000. 
B)  A gain of $ 900,000. 
C)  A gain of $ 500,000. 
D)  A gain of $ 400,000.

Question 3

A government incurred expenses for its infrastructure as follows: $20 million for general repairs; $15 million to extend the life for existing infrastructure; and $18 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:

Accepted Answer

A)  $33 million. 
B)  $35 million. 
C)  $38 million. 
D)  $53 million. 
A)  $33 million. 
B)  $35 million. 
C)  $38 million. 
D)  $53 million.

Question 4

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?

Accepted Answer

A)  Debit Depreciation expense, Credit Accumulated Depreciation. 
B)  Debit Net Position, Credit Accumulated Depreciation. 
C)  Debit Accumulated Depreciation, Credit Net Position. 
D)  Debit Machinery, Credit Accumulated Depreciation. 
A)  Debit Depreciation expense, Credit Accumulated Depreciation. 
B)  Debit Net Position, Credit Accumulated Depreciation. 
C)  Debit Accumulated Depreciation, Credit Net Position. 
D)  Debit Machinery, Credit Accumulated Depreciation.

Question 5

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

Accepted Answer

A)  Government-wide statements include the Statement of Net Position, the Statement of Activities, and the Statement of Cash Flows. 
B)  Government-wide statements are prepared using the economic resources measurement focus and accrual basis of accounting. 
C)  Both of the above are true. 
D)  Neither of the above is true. 
A)  Government-wide statements include the Statement of Net Position, the Statement of Activities, and the Statement of Cash Flows. 
B)  Government-wide statements are prepared using the economic resources measurement focus and accrual basis of accounting. 
C)  Both of the above are true. 
D)  Neither of the above is true.

Question 6

The City of Casper levied property taxes for 2015 in the amount of $9,000,000. By the end of the year,$7,200,000 had been collected. It was estimated that $500,000 would be collected during the next 60 days of 2015 and that $240,000 would be collected after that and the remainder would be uncollectible. The City has a policy of recognizing the full amount possible for property taxes. Which of the following statements is true?

Accepted Answer

A)  The amount reported for property tax revenue in the government-wide Statement of Activities would be $7,700,000. 
B)  The amount reported for property tax revenue in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances would be $7,940,000. 
C)  Both A and B. 
D)  None of the above. 
A)  The amount reported for property tax revenue in the government-wide Statement of Activities would be $7,700,000. 
B)  The amount reported for property tax revenue in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances would be $7,940,000. 
C)  Both A and B. 
D)  None of the above.

Question 7

Which of the following funds would not be included in the government-wide financial statements

Accepted Answer

A)  Capital Project Fund. 
B)  Private Purpose Trust Fund. 
C)  Enterprise Fund. 
D)  Permanent Fund. 
A)  Capital Project Fund. 
B)  Private Purpose Trust Fund. 
C)  Enterprise Fund. 
D)  Permanent Fund.

Question 8

With respect to government-wide statement,which of the following statements is correct?

Accepted Answer

A)  GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting. 
B)  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. 
C)  In addition to the fund basis statement, GASB Statement 34 requires government-wide statements that are prepared on the modified accrual basis using the economic resources measurement focus. 
D)  Fiduciary activities are reported in the government-wide statements in a separate column. 
A)  GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting. 
B)  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. 
C)  In addition to the fund basis statement, GASB Statement 34 requires government-wide statements that are prepared on the modified accrual basis using the economic resources measurement focus. 
D)  Fiduciary activities are reported in the government-wide statements in a separate column.

Question 9

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

Accepted Answer

A)  Discretely presented component units are reported separately. 
B)  Governmental and business-type activities are reported separately and are consolidated within columns. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Discretely presented component units are reported separately. 
B)  Governmental and business-type activities are reported separately and are consolidated within columns. 
C)  Both of the above. 
D)  Neither of the above.

Question 10

A government reported an Other Financing Source in the amount of $600,000 related to the sale of land in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances. The land had a cost of $150,000. The adjustment in the reconciliation when moving from the changes in fund balances in the Statement of Revenues,Expenditures,and Changes in Fund Balances to the change in Net Position in the Statement of Activities would be:

Accepted Answer

A)  Increase of $150,000. 
B)  Decrease of $150,000. 
C)  Increase of $450,000. 
D)  Decrease of $450,000. 
A)  Increase of $150,000. 
B)  Decrease of $150,000. 
C)  Increase of $450,000. 
D)  Decrease of $450,000.

Question 11

A local government recorded the sale of a capital asset at a gain by recording a debit to cash and credit to proceeds of sale of capital asset. What is the worksheet entry when preparing the government-wide statements?

Accepted Answer

A)  Debit to Proceeds of sale of capital asset and credit to Gain on sale of capital asset 
B)  Debit to Cash and credit to capital asset (net) and credit to Gain on sale of capital asset 
C)  Debit to Proceeds of sale of capital asset and credit to capital asset (net) and Gain on sale of capital asset 
D)  None of the above 
A)  Debit to Proceeds of sale of capital asset and credit to Gain on sale of capital asset 
B)  Debit to Cash and credit to capital asset (net) and credit to Gain on sale of capital asset 
C)  Debit to Proceeds of sale of capital asset and credit to capital asset (net) and Gain on sale of capital asset 
D)  None of the above

Question 12

Debt limit is the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time.

Accepted Answer

A) True 
 B)False

Question 13

The City of Madison,a general purpose government,reported fund balances in the amount of $19,700,000 in the governmental funds balance sheet dated December 31,2015.In addition,the following information is relevant:
A.General government capital assets amounted to $28,000,000. Accumulated depreciation of those capital assets amounted to $13,000,000. Enterprise fund capital assets amounted to $ 17,000,000 with accumulated depreciation of $ 8,400,000.
B.Internal service fund's net assets amounted to $2,500,000. These were reported in the proprietary funds fund basis statements but serve departments in the General Fund.
C.Property Taxes,which should be recognized as revenue in the government-wide statements,amounted to $ 200,000. The balance of deferred inflows - property taxes from the previous year was $ 170,000.
D.Liabilities,in addition to the amount reported in the governmental funds balance sheet included accrued interest payable,$300,000;
E.General long-term liabilities of the government amounted to (1)general obligation bonds of $ 6,000,000 and (2)compensated absences payable of $1,500,000. Revenue Bonds Payable in the enterprise fund totaled $ 2,000,000.
Required:
 Prepare a reconciliation from the fund balances recognized in the governmental funds balance sheet to the Net Position recognized in the governmental funds column of the government-wide statement of Net Position

Accepted Answer

The answer of The City of Madison,a general purpose government,reported...

Question 14

The reconciliations required to be presented on the face of the governmental fund financial statements or in separate schedule immediately after the fund financial statements include:

Accepted Answer

A)  Reconciliation from the governmental fund Balance Sheet to the Statement of Net Position. 
B)  Reconciliation from the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities. 
C)  Both A & B. 
D)  No reconciliations are required to be submitted. 
A)  Reconciliation from the governmental fund Balance Sheet to the Statement of Net Position. 
B)  Reconciliation from the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities. 
C)  Both A & B. 
D)  No reconciliations are required to be submitted.

Question 15

When preparing government-wide financial statements,the modified accrual based governments funds are adjusted. List 4 events involving capital assets that are likely to require adjustments.

Accepted Answer

(any 4)
•Capital assets are depreciated

Question 16

The governmental funds follow __________ where the government-wide statements follow ___________.

Accepted Answer

A)  Modified accrual accounting, accrual accounting. 
B)  Accrual accounting, modified accrual accounting. 
C)  Accrual accounting, accrual accounting. 
D)  None of the above. 
A)  Modified accrual accounting, accrual accounting. 
B)  Accrual accounting, modified accrual accounting. 
C)  Accrual accounting, accrual accounting. 
D)  None of the above.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  Held for public exhibition, education, or research to further public service 
B)  Protected, kept unencumbered, cared for, and preserved. 
C)  Subject to an organizational policy that requires the proceeds from sales of collection items to be used to acquire other collectibles 
D)  All of the above conditions must be met. 
A)  Held for public exhibition, education, or research to further public service 
B)  Protected, kept unencumbered, cared for, and preserved. 
C)  Subject to an organizational policy that requires the proceeds from sales of collection items to be used to acquire other collectibles 
D)  All of the above conditions must be met.

Question 19

With regard to the government-wide statements,distinguish between program revenues and general revenues. List three examples of each. What is the difference in reporting between program revenues and general revenues?

Accepted Answer

Program revenues are those that are asso

Question 20

The difference between assets and liabilities in the government-wide statements is called_________.

Accepted Answer

A)  Fund Balance. 
B)  Net Position. 
C)  Net Equity. 
D)  Accrued Equity. 
A)  Fund Balance. 
B)  Net Position. 
C)  Net Equity. 
D)  Accrued Equity.

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

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?

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

Which of the following funds would not be included in the government-wide financial statements

With respect to government-wide statement,which of the following statements is correct?

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

A local government recorded the sale of a capital asset at a gain by recording a debit to cash and credit to proceeds of sale of capital asset. What is the worksheet entry when preparing the government-wide statements?

Debt limit is the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time.

The reconciliations required to be presented on the face of the governmental fund financial statements or in separate schedule immediately after the fund financial statements include:

When preparing government-wide financial statements,the modified accrual based governments funds are adjusted. List 4 events involving capital assets that are likely to require adjustments.

The governmental funds follow where the government-wide statements follow _.

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

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

With regard to the government-wide statements,distinguish between program revenues and general revenues. List three examples of each. What is the difference in reporting between program revenues and general revenues?

The difference between assets and liabilities in the government-wide statements is called_________.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Inter-fund Transactions

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

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

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

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?

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

Which of the following funds would not be included in the government-wide financial statements

With respect to government-wide statement,which of the following statements is correct?

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

A local government recorded the sale of a capital asset at a gain by recording a debit to cash and credit to proceeds of sale of capital asset. What is the worksheet entry when preparing the government-wide statements?

Debt limit is the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time.

The reconciliations required to be presented on the face of the governmental fund financial statements or in separate schedule immediately after the fund financial statements include:

When preparing government-wide financial statements,the modified accrual based governments funds are adjusted. List 4 events involving capital assets that are likely to require adjustments.

The governmental funds follow __________ where the government-wide statements follow ___________.

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

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

With regard to the government-wide statements,distinguish between program revenues and general revenues. List three examples of each. What is the difference in reporting between program revenues and general revenues?

The difference between assets and liabilities in the government-wide statements is called_________.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Inter-fund Transactions

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

The governmental funds follow where the government-wide statements follow _.