Question 1

Which of the following statements is true regarding fund-based financial statements?

Accepted Answer

A)  Fund-based financial statements report a government's activities and financial position as a whole. 
B)  Fund-based financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road. 
C)  Fund-based financial statements utilize the accrual basis of accounting much like any for-profit entity. 
D)  Fund-based financial statements help to determine whether the government's overall financial position improved or deteriorated. 
E)  Fund-based financial statements report all assets and liabilities in a way comparable to business-type accounting. 
A)  Fund-based financial statements report a government's activities and financial position as a whole. 
B)  Fund-based financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road. 
C)  Fund-based financial statements utilize the accrual basis of accounting much like any for-profit entity. 
D)  Fund-based financial statements help to determine whether the government's overall financial position improved or deteriorated. 
E)  Fund-based financial statements report all assets and liabilities in a way comparable to business-type accounting.

Question 2

What assets would be included in the accounting records of a city's general fund?

Accepted Answer

The assets in the accounting r

Question 3

Revenue from property taxes should be recorded in the General Fund

Accepted Answer

A)  when received. 
B)  when there is an enforceable legal claim. 
C)  when they are available for recognition. 
D)  in the period for which they are required or permitted to be used. 
E)  in the period in which the tax bills are mailed. 
A)  when received. 
B)  when there is an enforceable legal claim. 
C)  when they are available for recognition. 
D)  in the period for which they are required or permitted to be used. 
E)  in the period in which the tax bills are mailed.

Question 4

Which of the following is not a classification of nonexchange transactions according to GASB Statement Number 33?

Accepted Answer

A)  Derived tax expenditures. 
B)  Voluntary nonexchange transactions. 
C)  Government-mandated nonexchange transactions. 
D)  Derived tax revenues. 
E)  Imposed nonexchange revenues. 
A)  Derived tax expenditures. 
B)  Voluntary nonexchange transactions. 
C)  Government-mandated nonexchange transactions. 
D)  Derived tax revenues. 
E)  Imposed nonexchange revenues.

Question 5

On July 1, 2011, Fred City ordered $1,500 of office supplies. They were to be paid for out of the General Fund.
Required:
(A) What journal entry was required for the Fund-Based Statements?
(B) What journal entry was required for the Government-Wide Statements?

Accepted Answer

(A.) For the Fund-Based Statements, an e

Question 6

The term "current financial resources" refers to

Accepted Answer

A)  Those assets that can quickly be converted into cash. 
B)  Monetary assets that are available to meet the government's needs. 
C)  The government's current assets and current liabilities. 
D)  The current value of all net assets owned by the governmental unit. 
E)  Financial resources used to provide electricity to local citizens. 
A)  Those assets that can quickly be converted into cash. 
B)  Monetary assets that are available to meet the government's needs. 
C)  The government's current assets and current liabilities. 
D)  The current value of all net assets owned by the governmental unit. 
E)  Financial resources used to provide electricity to local citizens.

Question 7

The Town of Anthrop has recorded the receipt of a $10,000 grant to make its Town Hall handicapped-accessible. The town now spends $10,000 to make the Town Hall handicapped-accessible.
Required:
Prepare the journal entry (or entries), and identify the fund for recording, to record that the town spends $10,000 of a grant it received to make the Town Hall handicapped-accessible.

Accepted Answer

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

Question 8

For each of the following transactions, select the area of accounting records in which an entry will be recorded.

Accepted Answer

The answer of For each of the following transactions, select...

Question 9

When a city collects fees from citizens who use the public swimming pool, the money should be recorded in

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 10

On January 1, 2011, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were used.
Required:
Record the journal entries for these transactions using the consumption method. (Disregard the encumbrance entries)

Accepted Answer

The answer of On January 1, 2011, Wakefield City purchased...

Question 11

When a city received a federal grant for providing food and other assistance to the homeless, the money should have been recorded in

Accepted Answer

A)  the General Fund. 
B)  an Expendable Trust Fund. 
C)  a Capital Projects Fund. 
D)  an Agency Fund. 
E)  a Special Revenue Fund. 
A)  the General Fund. 
B)  an Expendable Trust Fund. 
C)  a Capital Projects Fund. 
D)  an Agency Fund. 
E)  a Special Revenue Fund.

Question 12

On July 12, 2011, Fred City ordered a new computer at an anticipated cost of $114,400. The computer was received on July 16 with an actual cost of $116,220. Payment was subsequently made on August 15, 2011.
Required:
(A) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Fund-Based Financial Statements.
(B) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Government-Wide Financial Statements.

Accepted Answer

The answer of On July 12, 2011, Fred City ordered...

Question 13

What are the two proprietary fund types?
(1) Internal service funds.
(2) Investment trust funds.
(3) Enterprise funds.
(4) Agency funds.

Accepted Answer

A)  1 and 2. 
B)  2 and 3. 
C)  1 and 3. 
D)  2 and 4. 
E)  1 and 4. 
A)  1 and 2. 
B)  2 and 3. 
C)  1 and 3. 
D)  2 and 4. 
E)  1 and 4.

Question 14

Under modified accrual accounting, when should an expenditure to recognize interest on long-term debt be recorded?

Accepted Answer

A)  At the end of each accounting period. 
B)  When payment is due within one fiscal year. 
C)  When payment is due. 
D)  When cash is available to pay the interest. 
E)  When the interest is incurred. 
A)  At the end of each accounting period. 
B)  When payment is due within one fiscal year. 
C)  When payment is due. 
D)  When cash is available to pay the interest. 
E)  When the interest is incurred.

Question 15

The city of Kamen transferred $27,000 into a Pension Trust Fund. Of this amount, $19,000 was contributed by the city with the remainder coming from the employees.
Required:
For fund-based financial statements, prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

Accepted Answer

The answer of The city of Kamen transferred $27,000 into...

Question 16

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 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 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 revenues that have been legally restricted as to expenditure. 
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 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 revenues that have been legally restricted as to expenditure.

Question 17

Property taxes of 1,500,000 are levied for Miner County. The county expects that 5% will be uncollectible.
Required:
Prepare the required journal entry and identify the fund in which it is recorded.

Accepted Answer

The answer of Property taxes of 1,500,000 are levied for...

Question 18

The city of Kamen collected $17,000 from parking meters that must be transferred to the county government.
Required:
For fund-based financial statements, prepare the journal entry for this transaction 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...

Which of the following statements is true regarding fund-based financial statements?

What assets would be included in the accounting records of a city's general fund?

Revenue from property taxes should be recorded in the General Fund

Which of the following is not a classification of nonexchange transactions according to GASB Statement Number 33?

On July 1, 2011, Fred City ordered $1,500 of office supplies. They were to be paid for out of the General Fund. Required: (A) What journal entry was required for the Fund-Based Statements? (B) What journal entry was required for the Government-Wide Statements?

The term "current financial resources" refers to

For each of the following transactions, select the area of accounting records in which an entry will be recorded.

When a city collects fees from citizens who use the public swimming pool, the money should be recorded in

On January 1, 2011, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the consumption method. (Disregard the encumbrance entries)

When a city received a federal grant for providing food and other assistance to the homeless, the money should have been recorded in

What are the two proprietary fund types? (1) Internal service funds. (2) Investment trust funds. (3) Enterprise funds. (4) Agency funds.

Under modified accrual accounting, when should an expenditure to recognize interest on long-term debt be recorded?

Proprietary funds are

Property taxes of 1,500,000 are levied for Miner County. The county expects that 5% will be uncollectible. Required: Prepare the required journal entry and identify the fund in which it is recorded.

The city of Kamen collected $17,000 from parking meters that must be transferred to the county government. Required: For fund-based financial statements, prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

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 Flo

Consolidated Financial Statements - Ownership Patterns and Income

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operations

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

Exam 16: Accounting for State and Local Governments

Which of the following statements is true regarding fund-based financial statements?

What assets would be included in the accounting records of a city's general fund?

Revenue from property taxes should be recorded in the General Fund

Which of the following is not a classification of nonexchange transactions according to GASB Statement Number 33?

On July 1, 2011, Fred City ordered $1,500 of office supplies. They were to be paid for out of the General Fund. Required: (A) What journal entry was required for the Fund-Based Statements? (B) What journal entry was required for the Government-Wide Statements?

The term "current financial resources" refers to

For each of the following transactions, select the area of accounting records in which an entry will be recorded.

When a city collects fees from citizens who use the public swimming pool, the money should be recorded in

On January 1, 2011, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the consumption method. (Disregard the encumbrance entries)

When a city received a federal grant for providing food and other assistance to the homeless, the money should have been recorded in

What are the two proprietary fund types? (1) Internal service funds. (2) Investment trust funds. (3) Enterprise funds. (4) Agency funds.

Under modified accrual accounting, when should an expenditure to recognize interest on long-term debt be recorded?

Proprietary funds are

Property taxes of 1,500,000 are levied for Miner County. The county expects that 5% will be uncollectible. Required: Prepare the required journal entry and identify the fund in which it is recorded.

The city of Kamen collected $17,000 from parking meters that must be transferred to the county government. Required: For fund-based financial statements, prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

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 Flo

Consolidated Financial Statements - Ownership Patterns and Income

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operations

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