Exam 8: Government-Wide Statements, capital Assets, long-Term Debt

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

The difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation,is known as:

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. FALSE

When preparing government-wide statements,depreciation expense must be eliminated.

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

The City of Odessa maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements.As such,the City's internal service fund,a print shop fund,is included in the proprietary funds statements.Required: Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities: A.Balance sheet accounts include: Cash,$150,000; Inventories,$425,000; Capital Assets,$1,200,000; Accumulated Depreciation,$500,000; Accounts Payable,$150,000; Bonds Payable,$500,000,Net Assets,$525,000. B.The only transaction in the internal service fund that is external to the government is interest income in the amount of $15,000. C.Exclusive of the interest expense,the internal service fund reported (net)income of $60,000.An examination of the records indicates that services were provided as follows: one half to general government,one fourth to public safety,one fourth to culture and recreation.

When preparing government-wide financial statements,the modified accrual based governmental funds are adjusted for all of the following events except:

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?

When converting from the enterprise funds Statement of Net Assets to the government-wide Statement of Net Assets (government-wide statements),it is necessary to add fixed assets and to deduct long-term debt.

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

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

Where in the basic financial statements,in most cases,would one find internal service activities reported?

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

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

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

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 assets in the Statement of Activities would be:

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 assets.

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 Statement of Net Assets?

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