Question 1

Which of the following is true regarding worksheet entries?

Accepted Answer

A)  Worksheet entries are not posted to the general ledger (they are not booked) 
B)  Since depreciation is recorded in the general fixed asset account group, no worksheet entry for depreciation is necessary 
C)  Interfund activities within governmental activities do not need to be eliminated in a worksheet entry 
D)  Worksheet entries are necessary for enterprise activities 
A)  Worksheet entries are not posted to the general ledger (they are not booked) 
B)  Since depreciation is recorded in the general fixed asset account group, no worksheet entry for depreciation is necessary 
C)  Interfund activities within governmental activities do not need to be eliminated in a worksheet entry 
D)  Worksheet entries are necessary for enterprise activities

Question 2

GASB requires that infrastructure be recorded retroactively by Phase 1 governments:

Accepted Answer

A)  For fiscal years beginning after June 15, 2006 
B)  For fiscal years beginning after June 15, 2005 
C)  Not required, but encouraged to adopt infrastructure retroactively 
D)  None of the above 
A)  For fiscal years beginning after June 15, 2006 
B)  For fiscal years beginning after June 15, 2005 
C)  Not required, but encouraged to adopt infrastructure retroactively 
D)  None of the above

Question 3

The City of Smithfield levied property taxes in and for 2009 in the amount of $200 million. It is estimated that 1% will be uncollectible. During 2009, $180 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 assets would be:

Accepted Answer

A)  $8 million increase 
B)  $8 million decrease 
C)  $6 million increase 
D)  $6 million decrease 
A)  $8 million increase 
B)  $8 million decrease 
C)  $6 million increase 
D)  $6 million decrease

Question 4

Debt margin is the difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation.

Accepted Answer

A) True 
 B)False

Question 5

Worksheet entries are required to change the government fund financial statements to the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 6

General obligation debt, which has as backing the full faith and credit of the governmental unit is reported in both the government-wide statements and the fund basis statements.

Accepted Answer

A) True 
 B)False

Question 7

What steps are required to incorporate Internal Service funds into the governmental fund category?

Accepted Answer

(1) Bring in Balance sheet acc

Question 8

Which of the following is a purpose of the worksheet to convert from fund financial records to government-wide financial statements?

Accepted Answer

A)  Eliminate expenditures for capital assets 
B)  Eliminate fiduciary funds 
C)  Both A and B 
D)  Neither A nor B 
A)  Eliminate expenditures for capital assets 
B)  Eliminate fiduciary funds 
C)  Both A and B 
D)  Neither A nor B

Question 9

When converting from governmental fund financial statements to the governmental activities column of the government-wide statements, it is necessary to make a number of adjustments, many of which convert from modified accrual accounting to accrual accounting.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  Government-wide statements include the Statement of Net Assets, 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 Assets, 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 11

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

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 12

When preparing the government-wide financial statements, how much property tax revenue should be recognized for the year ended June 30, 2009?

Accepted Answer

A)  $6,200,000 
B)  $6,500,000 
C)  $6,860,000 
D)  $7,000,000 
A)  $6,200,000 
B)  $6,500,000 
C)  $6,860,000 
D)  $7,000,000

Question 13

Which of the following is true concerning infrastructure assets?

Accepted Answer

A)  Capitalization of infrastructure is optional 
B)  Capitalization of infrastructure is required 
C)  Governments must depreciate infrastructure assets 
D)  Governments rarely possess infrastructure 
A)  Capitalization of infrastructure is optional 
B)  Capitalization of infrastructure is required 
C)  Governments must depreciate infrastructure assets 
D)  Governments rarely possess infrastructure

Question 14

Internal Service Funds are most commonly included in the business-type activities category of the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 15

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 16

GASB Statement 37 specifically requires capitalization of interest during construction in governmental funds for government-wide statements.

Accepted Answer

A) True 
 B)False

Question 17

When are the entries to convert modified-accrual statements to accrual statements posted in the individual fund general ledgers?

Accepted Answer

A)  After you have completed all adjustments 
B)  After the closing entries 
C)  After preparing the government wide statement 
D)  None of the above, they are not posted 
A)  After you have completed all adjustments 
B)  After the closing entries 
C)  After preparing the government wide statement 
D)  None of the above, they are not posted

Question 18

Assume a government reported 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, a decrease of $1,000,000 would be entered.

Accepted Answer

A) True 
 B)False

Question 19

Where in the basic financial statements would one find fiduciary activities reported?

Accepted Answer

A)  In the fiduciary funds statements and in the governmental activities column of the government-wide statements 
B)  In the fiduciary funds statements and in the business like activities column of the government-wide statements 
C)  In the fiduciary funds statements only 
D)  In the government-wide statements only 
A)  In the fiduciary funds statements and in the governmental activities column of the government-wide statements 
B)  In the fiduciary funds statements and in the business like activities column of the government-wide statements 
C)  In the fiduciary funds statements only 
D)  In the government-wide statements only

Question 20

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

Accepted Answer

A) True 
 B)False

Which of the following is true regarding worksheet entries?

GASB requires that infrastructure be recorded retroactively by Phase 1 governments:

Debt margin is the difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation.

Worksheet entries are required to change the government fund financial statements to the accrual basis of accounting.

General obligation debt, which has as backing the full faith and credit of the governmental unit is reported in both the government-wide statements and the fund basis statements.

What steps are required to incorporate Internal Service funds into the governmental fund category?

Which of the following is a purpose of the worksheet to convert from fund financial records to government-wide financial statements?

When converting from governmental fund financial statements to the governmental activities column of the government-wide statements, it is necessary to make a number of adjustments, many of which convert from modified accrual accounting to accrual accounting.

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

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

When preparing the government-wide financial statements, how much property tax revenue should be recognized for the year ended June 30, 2009?

Which of the following is true concerning infrastructure assets?

Internal Service Funds are most commonly included in the business-type activities category of the government-wide statements.

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?

GASB Statement 37 specifically requires capitalization of interest during construction in governmental funds for government-wide statements.

When are the entries to convert modified-accrual statements to accrual statements posted in the individual fund general ledgers?

Where in the basic financial statements would one find fiduciary activities reported?

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

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 Trust Funds

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

Filters

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

Which of the following is true regarding worksheet entries?

GASB requires that infrastructure be recorded retroactively by Phase 1 governments:

Debt margin is the difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation.

Worksheet entries are required to change the government fund financial statements to the accrual basis of accounting.

General obligation debt, which has as backing the full faith and credit of the governmental unit is reported in both the government-wide statements and the fund basis statements.

What steps are required to incorporate Internal Service funds into the governmental fund category?

Which of the following is a purpose of the worksheet to convert from fund financial records to government-wide financial statements?

When converting from governmental fund financial statements to the governmental activities column of the government-wide statements, it is necessary to make a number of adjustments, many of which convert from modified accrual accounting to accrual accounting.

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

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

When preparing the government-wide financial statements, how much property tax revenue should be recognized for the year ended June 30, 2009?

Which of the following is true concerning infrastructure assets?

Internal Service Funds are most commonly included in the business-type activities category of the government-wide statements.

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?

GASB Statement 37 specifically requires capitalization of interest during construction in governmental funds for government-wide statements.

When are the entries to convert modified-accrual statements to accrual statements posted in the individual fund general ledgers?

Where in the basic financial statements would one find fiduciary activities reported?

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

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 Trust Funds

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

Filters