Question 1

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

Accepted Answer

A proprietary fund is used to account fo

Question 2

A $5,000,000 bond is issued by Northern City to build a new hospital and the proceeds of the bond are received directly by the fund that will be disbursing the monies for the hospital construction.
Required:
Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

Accepted Answer

The answer of A $5,000,000 bond is issued by Northern...

Question 3

A new truck was ordered for the sanitation department at a cost of $122,200 on September 3, 2018.
Required:
(A) Prepare the required journal entry in the general fund for the governmental fund financial statements.
(B) Prepare the required journal entry for the government-wide financial statements.

Accepted Answer

The answer of A new truck was ordered for the...

Question 4

Special Revenue funds are

Accepted Answer

A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee or agency capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects. 
A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee or agency capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects.

Question 5

The board of commissioners of the city of Jarmaine adopted a General fund budget for the year ending June 30, 2018, which indicated tax levy revenues of $1,300,000, bond proceeds of $520,000, appropriations for government operations of $1,170,000, and operating transfers out of $390,000.
Required:
If this budget was formally integrated into the accounting records used to produce the governmental fund financial statements, what was the required journal entry at the beginning of the year?

Accepted Answer

The answer of The board of commissioners of the city...

Question 6

Which statement most accurately reflects property taxes?

Accepted Answer

A)  Property taxes are derived tax revenues because property owners have the benefit of ownership. 
B)  Property taxes are considered a special assessment by the governing agency. 
C)  When recording, property taxes the receivable is record and the revenue is recognized when the government has enforceable legal claim. 
D)  When recording, property taxes the revenue is recognized in the period in which it can be used. 
E)  Property taxes are the result of the government making an assessment, only when an underlying exchange has occurred. 
A)  Property taxes are derived tax revenues because property owners have the benefit of ownership. 
B)  Property taxes are considered a special assessment by the governing agency. 
C)  When recording, property taxes the receivable is record and the revenue is recognized when the government has enforceable legal claim. 
D)  When recording, property taxes the revenue is recognized in the period in which it can be used. 
E)  Property taxes are the result of the government making an assessment, only when an underlying exchange has occurred.

Question 7

Prepare the journal entry and identify the fund to record Simple City's purchase order of two trucks for $100,000.Identify the fund in which the entry is recorded.

Accepted Answer

The answer of Prepare the journal entry and identify the...

Question 8

Proprietary funds are

Accepted Answer

A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee or agency capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects. 
A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee or agency capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects.

Question 9

On July 12, 2018, Fred City ordered a new computer at an anticipated cost of $114,400.The computer was received on July 16, 2018 with an actual cost of $116,220.Payment was subsequently made on August 15, 2018.
Required:
(A) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the governmental fund financial statements.
(B) Prepare all the required journal entries to be recorded for the government-wide financial statements.

Accepted Answer

The answer of On July 12, 2018, Fred City ordered...

Question 10

Which of the following statements is true about Fund Balance classifications for the governmental funds?

Accepted Answer

A)  A restricted fund balance is for monies the governing board has appropriated. 
B)  An assigned fund balance has been designated for a specific purpose and is restricted to use for only that purpose. 
C)  An unassigned fund balance has no restriction for use of the money and is normally applicable to the general fund. 
D)  A committed fund balance has been designated by an outside party for a particular use. 
E)  A nonspendable fund balance is designated only for the balance of permanent funds. 
A)  A restricted fund balance is for monies the governing board has appropriated. 
B)  An assigned fund balance has been designated for a specific purpose and is restricted to use for only that purpose. 
C)  An unassigned fund balance has no restriction for use of the money and is normally applicable to the general fund. 
D)  A committed fund balance has been designated by an outside party for a particular use. 
E)  A nonspendable fund balance is designated only for the balance of permanent funds.

Question 11

Trapper City issued 30-year bonds for the purpose of building a new City Hall.The proceeds of the bonds are deposited in the General Fund.For the governmental fund financial statements, in what fund will Bonds Payable appear?

Accepted Answer

A)  General fund. 
B)  Internal service fund. 
C)  Permanent fund. 
D)  Debt service fund. 
E)  Bonds Payable do not appear in governmental fund financial statements. 
A)  General fund. 
B)  Internal service fund. 
C)  Permanent fund. 
D)  Debt service fund. 
E)  Bonds Payable do not appear in governmental fund financial statements.

Question 12

Which statement is not correct?

Accepted Answer

A)  Governmental funds account for expenditures of financial resources rather than matching revenues and expenses. 
B)  The Encumbrances Outstanding account should be reversed and closed at the end of a fiscal year. 
C)  Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds. 
D)  A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives. 
E)  Commitments for purchase orders are recorded as expenses. 
A)  Governmental funds account for expenditures of financial resources rather than matching revenues and expenses. 
B)  The Encumbrances Outstanding account should be reversed and closed at the end of a fiscal year. 
C)  Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds. 
D)  A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives. 
E)  Commitments for purchase orders are recorded as expenses.

Question 13

A county enacted a special tax levy and the money must be used to buy unused farmland for environmental preservation.What kind of fund should be used to record the revenues generated by the tax?

Accepted Answer

A special

Question 14

Under modified accrual accounting, when are expenditures recorded?

Accepted Answer

Under modified accrual account

Question 15

The government has just voted to repair the parking garages to all federal building and estimate the cost to be $750,000.The government discloses this decision by debiting which account?

Accepted Answer

A)  Committed 
B)  Nonspendable 
C)  Assigned 
D)  Unassigned 
E)  Restricted 
A)  Committed 
B)  Nonspendable 
C)  Assigned 
D)  Unassigned 
E)  Restricted

Question 16

A city operates a central data processing facility.The expenses of this facility would be accounted for using

Accepted Answer

A)  The general fund. 
B)  An enterprise fund. 
C)  A capital projects fund. 
D)  An agency fund. 
E)  An internal service fund. 
A)  The general fund. 
B)  An enterprise fund. 
C)  A capital projects fund. 
D)  An agency fund. 
E)  An internal service fund.

Question 17

According to GASB Concepts Statement No.1, what are the three groups of primary users of external state and local governmental financial reports?

Accepted Answer

A)  The Securities and Exchange Commission, the citizenry, and legislative and oversight bodies. 
B)  The Securities and Exchange Commission, legislative and oversight bodies, and investors and creditors. 
C)  The Securities and Exchange Commission, the citizenry, and investors and creditors. 
D)  The citizenry, legislative and oversight bodies, and investors and creditors. 
E)  The citizenry, management, and the Governmental Accounting Office. 
A)  The Securities and Exchange Commission, the citizenry, and legislative and oversight bodies. 
B)  The Securities and Exchange Commission, legislative and oversight bodies, and investors and creditors. 
C)  The Securities and Exchange Commission, the citizenry, and investors and creditors. 
D)  The citizenry, legislative and oversight bodies, and investors and creditors. 
E)  The citizenry, management, and the Governmental Accounting Office.

Question 18

The Town of Anthrop has recorded the receipt of a $60,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2018.The town now spends $60,000 to transport the citizens on Election Day.
Required:
Prepare the journal entry (or entries), and identify the fund for recording, to record that the town spends $60,000 of the grant it received to transport senior citizens on Election Day.

Accepted Answer

The answer of The Town of Anthrop has recorded the...

Question 19

In May of 2018, the Town of Anthrop receives a $60,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2018.
Required:
Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant.

Accepted Answer

The answer of In May of 2018, the Town of...

Question 20

The City of Kamen collected $17,000 from parking meters that must be transferred to the county government in the next thirty days.
Required:
For fund financial statements, prepare the journal entry for the collection of the $17,000 from parking meters, including the fund type in which the entry would have been recorded.

Accepted Answer

The answer of The City of Kamen collected $17,000 from...

Exam 16: Accounting for State and Local Governments, Part I

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

A new truck was ordered for the sanitation department at a cost of $122,200 on September 3, 2018. Required: (A) Prepare the required journal entry in the general fund for the governmental fund financial statements. (B) Prepare the required journal entry for the government-wide financial statements.

Special Revenue funds are

Which statement most accurately reflects property taxes?

Prepare the journal entry and identify the fund to record Simple City's purchase order of two trucks for $100,000.Identify the fund in which the entry is recorded.

Proprietary funds are

Which of the following statements is true about Fund Balance classifications for the governmental funds?

Trapper City issued 30-year bonds for the purpose of building a new City Hall.The proceeds of the bonds are deposited in the General Fund.For the governmental fund financial statements, in what fund will Bonds Payable appear?

Which statement is not correct?

A county enacted a special tax levy and the money must be used to buy unused farmland for environmental preservation.What kind of fund should be used to record the revenues generated by the tax?

Under modified accrual accounting, when are expenditures recorded?

The government has just voted to repair the parking garages to all federal building and estimate the cost to be $750,000.The government discloses this decision by debiting which account?

A city operates a central data processing facility.The expenses of this facility would be accounted for using

According to GASB Concepts Statement No.1, what are the three groups of primary users of external state and local governmental financial reports?

In May of 2018, the Town of Anthrop receives a $60,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2018. Required: Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant.

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

Consolidation of Financial Information

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

A: Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

A: Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

A: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

A: Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

A: Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

A: Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

A: Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

A: Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

A: Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

A: Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

A: Partnerships: Termination and Liquidation

A: Accounting for State and Local Governments, Part I

Accounting for State and Local Governments, Part II

A: Accounting for State and Local Governments, Part II

Accounting for Not-For-Profit Entities

A: Accounting for Not-For-Profit Entities

Accounting for Estates and Trusts

A: Accounting for Estates and Trusts

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