Question 1

Which one of the following is a criterion for identifying a primary government?

Accepted Answer

A)  it has an appointed board of directors. 
B)  it is fiscally dependent. 
C)  it is a local government. 
D)  it has a separately elected governing body. 
E)  it must prepare financial statements. 
A)  it has an appointed board of directors. 
B)  it is fiscally dependent. 
C)  it is a local government. 
D)  it has a separately elected governing body. 
E)  it must prepare financial statements.

Question 2

Which of the following is a section of the general purpose external financial statements of a state or local government?
(1) Management's discussion and analysis (MD&A).
(2) Required supplementary information (other than MD&A).
(3) Basic financial statements and notes to financial statements.

Accepted Answer

A)  1 and 2. 
B)  2 and 3. 
C)  1 and 3. 
D)  3 only. 
E)  1, 2, and 3. 
A)  1 and 2. 
B)  2 and 3. 
C)  1 and 3. 
D)  3 only. 
E)  1, 2, and 3.

Question 3

A method of depreciation for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called

Accepted Answer

A)  Government-wide depreciation. 
B)  Proprietary depreciation. 
C)  GASB depreciation. 
D)  Modified approach. 
E)  Alternative depreciation. 
A)  Government-wide depreciation. 
B)  Proprietary depreciation. 
C)  GASB depreciation. 
D)  Modified approach. 
E)  Alternative depreciation.

Question 4

What is meant by the term fiscally independent?

Accepted Answer

Fiscally independent means that the lead

Question 5

For the purpose of government-wide financial statements, the cost of cleaning up a government-owned landfill and closing the landfill

Accepted Answer

A)  Is not recognized until the costs are actually incurred. 
B)  Is accrued and amortized over the expected useful life of the landfill. 
C)  Is accrued on a pro-rated basis each period based on how full the landfill is. 
D)  Is accrued in full at the time the costs become estimable. 
E)  Is treated as an encumbrance at the time it become estimable, and then as an expenditure when it is actually paid. 
A)  Is not recognized until the costs are actually incurred. 
B)  Is accrued and amortized over the expected useful life of the landfill. 
C)  Is accrued on a pro-rated basis each period based on how full the landfill is. 
D)  Is accrued in full at the time the costs become estimable. 
E)  Is treated as an encumbrance at the time it become estimable, and then as an expenditure when it is actually paid.

Question 6

A five-year lease is signed by the City of Wachovia for equipment with a seven-year life. The asset will be returned to the lessor at the end of the lease. The present value of the lease is $20,000, and annual payments of $5,411.41 are payable beginning on the date the lease is signed. The interest portion of the second payment is $1,604.75. The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund.
What should be recorded in the General Fund one year from the date the lease is signed?

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
E)  Option E 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
E)  Option E

Question 7

A city starts a solid waste landfill during 2012. When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed. At the end of 2012, the facility was 20% full, and at the end of 2013 the facility was 45% full. If the landfill is judged to be a governmental fund, what liability is reported on the fund financial statements at the end of 2013?

Accepted Answer

A)  $0. 
B)  $300,000. 
C)  $375,000. 
D)  $600,000. 
E)  $675,000. 
A)  $0. 
B)  $300,000. 
C)  $375,000. 
D)  $600,000. 
E)  $675,000.

Question 8

Which statement is false regarding the government-wide Statement of Net Assets?

Accepted Answer

A)  the purpose of the Statement of Net Assets is to report the economic resources of the government as a whole. 
B)  assets are reported excluding capital assets. 
C)  capital assets are reported net of depreciation. 
D)  investments are reported at fair value rather than historical cost. 
E)  Business-type activities include Enterprise Funds. 
A)  the purpose of the Statement of Net Assets is to report the economic resources of the government as a whole. 
B)  assets are reported excluding capital assets. 
C)  capital assets are reported net of depreciation. 
D)  investments are reported at fair value rather than historical cost. 
E)  Business-type activities include Enterprise Funds.

Question 9

The Town of Portsmouth has at the beginning of the year a $213,000 Net Asset balance, and a $52,000 Fund Balance.
The following information relates to the activities within the Town of Portsmouth for the year of 2013.   
Prepare a Statement of Revenues, Expenditures and Changes in Fund Balances

Accepted Answer

The answer of The Town of Portsmouth has at the...

Which one of the following is a criterion for identifying a primary government?

Which of the following is a section of the general purpose external financial statements of a state or local government? (1) Management's discussion and analysis (MD&A). (2) Required supplementary information (other than MD&A). (3) Basic financial statements and notes to financial statements.

A method of depreciation for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called

What is meant by the term fiscally independent?

For the purpose of government-wide financial statements, the cost of cleaning up a government-owned landfill and closing the landfill

Which statement is false regarding the government-wide Statement of Net Assets?

The Town of Portsmouth has at the beginning of the year a $213,000 Net Asset balance, and a $52,000 Fund Balance. The following information relates to the activities within the Town of Portsmouth for the year of 2013. Prepare a Statement of Revenues, Expenditures and Changes in Fund Balances

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

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

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

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Exam 17: Accounting for State and Local Governments

Which one of the following is a criterion for identifying a primary government?

Which of the following is a section of the general purpose external financial statements of a state or local government? (1) Management's discussion and analysis (MD&A). (2) Required supplementary information (other than MD&A). (3) Basic financial statements and notes to financial statements.

A method of depreciation for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called

What is meant by the term fiscally independent?

For the purpose of government-wide financial statements, the cost of cleaning up a government-owned landfill and closing the landfill

Which statement is false regarding the government-wide Statement of Net Assets?

The Town of Portsmouth has at the beginning of the year a $213,000 Net Asset balance, and a $52,000 Fund Balance. The following information relates to the activities within the Town of Portsmouth for the year of 2013. Prepare a Statement of Revenues, Expenditures and Changes in Fund Balances

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

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

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters