Exam 5: Accounting for General Capital Assets and Capital Projects

Maryville is considering the issuance of bonds to fund a capital project.For the following legally feasible bond issue alternatives,discuss the desirability of each alternative from the viewpoint of (1)the official in charge of administering capital projects funds,and (2)taxpayers responsible for repaying the bond issue. a)$5,000,000 face value,10-year special assessment bonds can be sold at 98 with semiannual interest at the nominal annual rate of 6 percent.The discount would be borne by a debt service fund. b)Same as item a above,except the discount would be borne by the capital projects fund. c)The same bond issue can be sold at 103 with semiannual interest at the nominal rate of 9 percent; the premium would be transferred to the debt service fund. d)Same as item c above,except the premium would be retained by the capital projects fund.

(Essay)

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Question 61

A capital projects fund might be used to record which of the following activities?

(Multiple Choice)

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Question 62

If land purchased by a city's proprietary fund,at a cost of $70,000,is later transferred to the city's Park Department (accounted for by the General Fund)it should be recorded in the governmental activities accounts at fair value on the date of transfer.

(True/False)

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Question 63

At the government-wide level,net assets related to capital assets should be reported as

(Multiple Choice)

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Question 64

What journal entry should be made at the beginning of the fiscal year to reestablish the Encumbrances account of a capital projects fund for a multi-year capital project?

(Multiple Choice)

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Question 65

In a capital projects fund the offsetting credit to the debit for Assessments Receivable-Current should be to Other Financing Sources-Special Assessments.

(True/False)

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Question 66

Equipment acquired several years ago by a capital projects fund and recorded in the governmental activities general journal was sold.The cash received was considered to be unrestricted revenue.Entries are necessary in the

(Multiple Choice)

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Question 67

The sale of tax-supported bonds at par for the eventual construction of a new city jail would require recognition in which of the following funds and/or activities?

(Multiple Choice)

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Question 68

The city of Columbus issued bonds at par for the construction of a new city office building.Receipt of the bond proceeds would result in journal entries in which funds?

(Multiple Choice)

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Question 69

If a capital projects fund starts construction of a building in one year and finishes it in a subsequent year an entry must be made in the governmental activities accounts until the building is completed,inspected,and accepted.

(True/False)

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Question 70

The net cost of demolishing a building on land purchased as a site for an addition to city hall should be debited to Buildings in the governmental activities accounts.

(True/False)

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Question 71

If a capital project is financed partially by use of special assessments,should the capital projects fund recognize revenue from the assessments at the time of the levy or at the time that the assessments are collected? Explain your answer.

(Essay)

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Question 72

The capital assets used by the government departments accounted for in the governmental funds should be reported in

(Multiple Choice)

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Question 73

The disposal of a general capital asset,resulting in no revenue or expenditure to the government,is recorded only in the governmental activities accounts.

(True/False)

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Question 74

A government must capitalize the cost of improvements such as roads,bridges,sidewalks,and so forth,because the GASB requires the cost of such assets to be displayed in the basic financial statements.

(True/False)

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Question 75

A capital projects fund might be used to account for which of the following activities?

(Multiple Choice)

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Question 76

Even though the life of a capital projects fund is the life of the project,not year-to-year,operating statement accounts and encumbrances should be closed at year-end to facilitate preparation of year-end financial statements.

(True/False)

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Question 77

The following items were included in Prairie City's General Fund expenditures for the year ended June How much should be classified as capital assets in Prairie City's General Fund balance sheet at June 30?

(Multiple Choice)

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Question 78

Which of the following is one of the requirements that must be met to elect the "modified approach" to reporting certain eligible infrastructure assets?

(Multiple Choice)

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Question 79

Which of the following is a true statement about governments that issue tax-supported debt to finance capital projects?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 87

A capital projects fund might be used to record which of the following activities?

If land purchased by a city's proprietary fund,at a cost of $70,000,is later transferred to the city's Park Department (accounted for by the General Fund)it should be recorded in the governmental activities accounts at fair value on the date of transfer.

At the government-wide level,net assets related to capital assets should be reported as

What journal entry should be made at the beginning of the fiscal year to reestablish the Encumbrances account of a capital projects fund for a multi-year capital project?

In a capital projects fund the offsetting credit to the debit for Assessments Receivable-Current should be to Other Financing Sources-Special Assessments.

Equipment acquired several years ago by a capital projects fund and recorded in the governmental activities general journal was sold.The cash received was considered to be unrestricted revenue.Entries are necessary in the

The sale of tax-supported bonds at par for the eventual construction of a new city jail would require recognition in which of the following funds and/or activities?

The city of Columbus issued bonds at par for the construction of a new city office building.Receipt of the bond proceeds would result in journal entries in which funds?

If a capital projects fund starts construction of a building in one year and finishes it in a subsequent year an entry must be made in the governmental activities accounts until the building is completed,inspected,and accepted.

The net cost of demolishing a building on land purchased as a site for an addition to city hall should be debited to Buildings in the governmental activities accounts.

If a capital project is financed partially by use of special assessments,should the capital projects fund recognize revenue from the assessments at the time of the levy or at the time that the assessments are collected? Explain your answer.

The capital assets used by the government departments accounted for in the governmental funds should be reported in

The disposal of a general capital asset,resulting in no revenue or expenditure to the government,is recorded only in the governmental activities accounts.

A government must capitalize the cost of improvements such as roads,bridges,sidewalks,and so forth,because the GASB requires the cost of such assets to be displayed in the basic financial statements.

A capital projects fund might be used to account for which of the following activities?

Even though the life of a capital projects fund is the life of the project,not year-to-year,operating statement accounts and encumbrances should be closed at year-end to facilitate preparation of year-end financial statements.

The following items were included in Prairie City's General Fund expenditures for the year ended June How much should be classified as capital assets in Prairie City's General Fund balance sheet at June 30?

Which of the following is one of the requirements that must be met to elect the "modified approach" to reporting certain eligible infrastructure assets?

Which of the following is a true statement about governments that issue tax-supported debt to finance capital projects?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations Regulatory, taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

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