Question 1

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

Accepted Answer

A)  Government-wide financial statements are prepared using the accrual method of accounting 
B)  General fixed assets are not required to be reported on the government-wide balance sheet 
C)  Worksheet entries are required to change the government fund financial statements to the accrual basis of accounting 
D)  GASB requires a reconciliation from fund financial statements to government-wide financial statements 
A)  Government-wide financial statements are prepared using the accrual method of accounting 
B)  General fixed assets are not required to be reported on the government-wide balance sheet 
C)  Worksheet entries are required to change the government fund financial statements to the accrual basis of accounting 
D)  GASB requires a reconciliation from fund financial statements to government-wide financial statements

Question 2

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 3

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

Accepted Answer

The measurement focus and basi

Question 4

A government reported, in its government-wide Statement of Net Assets: Assets of $80 million, including $40 million in capital assets (cost), with $12 million in accumulated depreciation and liabilities of $50 million, including long-term debt of $12 million, all related to capital asset acquisition. In addition, $4 million of cash was restricted for payment of debt service. The government's unrestricted net assets would be reported as:

Accepted Answer

A)  $22 million 
B)  $20 million 
C)  $16 million 
D)  $10 million 
A)  $22 million 
B)  $20 million 
C)  $16 million 
D)  $10 million

Question 5

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

Accepted Answer

A)  Debt margin 
B)  Debt limit 
C)  Borrowing power 
D)  Maximum debt 
A)  Debt margin 
B)  Debt limit 
C)  Borrowing power 
D)  Maximum debt

Question 6

Internal Service Funds are a category of proprietary funds.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  A costly piece of diagnostic equipment at a city hospital is no longer used because new technology exists that does a better job 
B)  A bridge is damaged by an earthquake 
C)  An expansion project at the city airport is halted because a major airline stops service to the city 
D)  All of the above 
A)  A costly piece of diagnostic equipment at a city hospital is no longer used because new technology exists that does a better job 
B)  A bridge is damaged by an earthquake 
C)  An expansion project at the city airport is halted because a major airline stops service to the city 
D)  All of the above

Question 8

Which of the following adjustments would be made when moving from the governmental funds balance sheet to the governmental activities column in the government-wide Statement of Net Assets?

Accepted Answer

A)  Add balances of internal service funds 
B)  Add fixed assets, net of depreciation 
C)  Both of the above 
D)  Neither of the above 
A)  Add balances of internal service funds 
B)  Add fixed assets, net of depreciation 
C)  Both of the above 
D)  Neither of the above

Question 9

The difference between assets and liabilities in the government-wide statements is called _________?

Accepted Answer

A)  Net Assets 
B)  Fund Balance 
C)  Net Equity 
D)  Accrued Equity 
A)  Net Assets 
B)  Fund Balance 
C)  Net Equity 
D)  Accrued Equity

Question 10

GASB does not require that "collections" be capitalized and depreciated.

Accepted Answer

A) True 
 B)False

Question 11

The City of Greystone maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations:
A. The City levied property taxes for the current fiscal year in the amount of $8,000,000. When making the entries, it was assumed that 3 percent of the taxes would not be collected. At year-end, $800,000 of the taxes had not been collected. It was estimated that $300,000 of that amount would be collected during the 60 days after the end of the fiscal year and that $240,000 would be collected after that time. The City had recognized the maximum of property taxes allowable under modified accrual accounting.
B. $250,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year.
C. In addition to the expenditures allowed under modified accrual accounting, the city computed that an additional $200,000 should be accrued for compensated absences.
D. In the Statement of Revenues, Expenditures and Changes in Fund Balances, General Fund transfers out included $500,000 to a debt service fund and $210,000 to a special revenue fund. General fund transfers in included $1,000,000 from an enterprise fund.

Accepted Answer

None

Question 12

With regard to the government-wide statements, list the required statements.

Accepted Answer

The required financi

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

In preparing the government-wide financial statements, worksheet entries are not posted to the general ledger. Therefore, new worksheet entries for existing fixed assets must be made each year.

Accepted Answer

A) True 
 B)False

Question 15

A government incurred expenditures for its infrastructure as follows: $20 million for general repairs; $21 million to extend the life of existing infrastructure; $22 million for improvements and additions. If depreciation is to be charged, the amount would be $23 million. Which of the following would be true?

Accepted Answer

A)  If the government chose to use the modified approach to record infrastructure, the amount to be charged as expense would be $43 million 
B)  If the government chose not to use the modified approach to record infrastructure, the amount to be charged to expense would be $41 million 
C)  Both of the above 
D)  Neither of the above 
A)  If the government chose to use the modified approach to record infrastructure, the amount to be charged as expense would be $43 million 
B)  If the government chose not to use the modified approach to record infrastructure, the amount to be charged to expense would be $41 million 
C)  Both of the above 
D)  Neither of the above

Question 16

Which of the following is NOT true regarding infrastructure assets?

Accepted Answer

A)  Governments can record depreciation in the same manner as for other depreciable fixed assets 
B)  Infrastructure assets are never depreciated 
C)  Governments can choose to expense expenditures that extend the life of infrastructure assets 
D)  Expenditures to add to or improve infrastructure assets must be capitalized 
A)  Governments can record depreciation in the same manner as for other depreciable fixed assets 
B)  Infrastructure assets are never depreciated 
C)  Governments can choose to expense expenditures that extend the life of infrastructure assets 
D)  Expenditures to add to or improve infrastructure assets must be capitalized

Question 17

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 18

The City of Bluefield had general obligation debt outstanding in the amount of $64,000,000 and had available resources of $12,000,000 to pay that debt. The assessed valuation of property in the city is $800,000,000. The state applies a 10 percent debt limit, based on assessed valuation. The debt margin to be reported in the City's statistical section of the CAFR would be:

Accepted Answer

A)  $64 million 
B)  $40 million 
C)  $36 million 
D)  $28 million 
A)  $64 million 
B)  $40 million 
C)  $36 million 
D)  $28 million

Question 19

Identify and describe the required supplementary information schedules that must be prepared when using the modified approach.

Accepted Answer

Two RSI schedules must be prepared. One

Question 20

Which of the following is true regarding the reporting of general fixed assets by state and local governments?

Accepted Answer

A)  Fixed assets are reported in the government-wide Statement of Net Assets 
B)  Fixed assets are reported in the governmental funds Balance Sheet 
C)  Both of the above 
D)  Neither of the above 
A)  Fixed assets are reported in the government-wide Statement of Net Assets 
B)  Fixed assets are reported in the governmental funds Balance Sheet 
C)  Both of the above 
D)  Neither of the above

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

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

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

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

Internal Service Funds are a category of proprietary funds.

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

Which of the following adjustments would be made when moving from the governmental funds balance sheet to the governmental activities column in the government-wide Statement of Net Assets?

The difference between assets and liabilities in the government-wide statements is called _________?

GASB does not require that "collections" be capitalized and depreciated.

With regard to the government-wide statements, list the required statements.

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

In preparing the government-wide financial statements, worksheet entries are not posted to the general ledger. Therefore, new worksheet entries for existing fixed assets must be made each year.

Which of the following is NOT true regarding infrastructure assets?

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

Identify and describe the required supplementary information schedules that must be prepared when using the modified approach.

Which of the following is true regarding the reporting of general fixed assets by state and local governments?

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 false regarding government-wide financial statements?

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

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

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

Internal Service Funds are a category of proprietary funds.

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

Which of the following adjustments would be made when moving from the governmental funds balance sheet to the governmental activities column in the government-wide Statement of Net Assets?

The difference between assets and liabilities in the government-wide statements is called _________?

GASB does not require that "collections" be capitalized and depreciated.

With regard to the government-wide statements, list the required statements.

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

In preparing the government-wide financial statements, worksheet entries are not posted to the general ledger. Therefore, new worksheet entries for existing fixed assets must be made each year.

Which of the following is NOT true regarding infrastructure assets?

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

Identify and describe the required supplementary information schedules that must be prepared when using the modified approach.

Which of the following is true regarding the reporting of general fixed assets by state and local governments?

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