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

Worksheet entries involve reestablishing certain balance sheet accounts every year.

The General Fund of the City of Plymouth purchased a police car in the amount of $25,000. Which of the following would be true?

A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures for capital outlay in the amount of $6,000,000. Capital assets for that government cost $120,000,000, 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 assets would reflect a(an):

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

Internal service funds primarily serve governmental departments; therefore they are not incorporated into the business-type activities category of the government-wide statements.

Internal service funds primarily serve governmental departments; therefore they must be incorporated into the governmental activities category of the government-wide statements.

A government's Statement of Revenues, Expenditures and Changes in Fund Balances reported proceeds of bonds in the amount of $500,000. It also reported expenditures for bond principal in the amount of $1,000,000. 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 assets would reflect a(an):

A government reported expenditures for infrastructure as follows: $20 million for improvements and additions; $18 million to extend the life of existing infrastructure; $16 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?

Balances from enterprise fund statements, Statement of Net Assets and Statement of Revenues, Expenses and Changes in Fund Net Assets, are entered directly to the business-type activities sections of government-wide statements.

When making the worksheet entry to eliminate transfers which of the following would be acceptable considering transfers in of $123,000 and transfers out of $254,000? A. Transfer-in from other funds 123,000 Net Assets 131,000 Transfer out to other funds 254,000 B. Transfer-in from other funds 123,000 Transfer out to other funds 123,000 C. Transfer-in from other funds 254,000 Transfer out to other funds 254,000 D. Transfer-in from other funds 254,000 Transfer out to other funds 254,000

GASB requires that all infrastructure be capitalized and depreciated

Assume a government reported $300,000 in capital outlay expenditures in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances. Secondly, assume depreciation of capital assets amounted to $250,000, in the governmental activities column in the Statement of Activities. Those adjustments would cause a decrease of $50,000 when preparing the reconciliation between the change in governmental fund balances to the change in net assets of governmental activities in the Statement of Activities.

Debt limit is a measure of effective leverage for enterprise activities.

A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $2 million. Capital assets for that government cost $70 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect a(an):

A government incurred expenses for its infrastructure as follows: $15 million for general repairs; $13 million to extend the life for existing infrastructure; and $12 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:

General long-term debt, to be paid out of resources of the government's taxing power is not reflected in the governmental fund Balance Sheet but is reflected in the government-wide Statement of Net Assets.

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

General fixed assets are not required to be reported on the government-wide balance sheet.

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

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