Question 1

The government-wide statements do not include a government-wide Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 2

When converting from fund financial statements to government-wide statements, it is necessary to eliminate transfers that are between the categories of governmental activities and business-type activities.

Accepted Answer

A) True 
 B)False

Question 3

When preparing government-wide financial statements, the modified accrual based governments funds are adjusted. List 5 items involving long-term debt that are likely to require adjustments.

Accepted Answer

any 5)
F1F1F1S1F1F1F10Proceeds of debt

Question 4

With regard to the government-wide statements, distinguish between program revenues and general revenues. List three examples of each. What is the difference in reporting between program revenues and general revenues?

Accepted Answer

Program revenues are those that are asso

Question 5

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 Position?

Accepted Answer

A)  Add balances of internal service fund assets and liabilities. 
B)  Add beginning capital assets, net of depreciation. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Add balances of internal service fund assets and liabilities. 
B)  Add beginning capital assets, net of depreciation. 
C)  Both of the above. 
D)  Neither of the above.

Question 6

A government reported an "other financing source" in the amount of $800,000, 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 $375,000. The adjustment in the reconciliation, when moving from the governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the change in net position for governmental activities in the Statement of Activities would be aan:

Accepted Answer

A)  Decrease of $425,000. 
B)  Increase of $425,000. 
C)  Increase of $375,000. 
D)  Decrease of $375,000. 
A)  Decrease of $425,000. 
B)  Increase of $425,000. 
C)  Increase of $375,000. 
D)  Decrease of $375,000.

Question 7

A government reported expenditures for infrastructure as follows: $20 million for improvements and additions; $18 million to extend the life of existing infrastructure; $22 million for general repairs. The cost of its infrastructure, excluding land, is $600 million, and the infrastructure has an estimated life of 50 years, on average. Which of the following would be the reported expense in millions under each of the following options?

Accepted Answer

A)  Depreciation Approach: $34; Modified Approach: $40 
B)  Depreciation Approach: $38; Modified Approach: $32 
C)  Depreciation Approach: $32; Modified Approach: $38 
D)  Depreciation Approach: $40; Modified Approach: $34 
A)  Depreciation Approach: $34; Modified Approach: $40 
B)  Depreciation Approach: $38; Modified Approach: $32 
C)  Depreciation Approach: $32; Modified Approach: $38 
D)  Depreciation Approach: $40; Modified Approach: $34

Question 8

For the depreciation of infrastructure…

Accepted Answer

A)  Governments can choose to expense expenditures that extend the life of infrastructure assets in lieu of depreciation 
B)  Governments are required to record depreciation in the same manner as other depreciable fixed assets. 
C)  Governments are required to record depreciation using a modified approach. 
D)  Governments do not record depreciation for infrastructure. 
A)  Governments can choose to expense expenditures that extend the life of infrastructure assets in lieu of depreciation 
B)  Governments are required to record depreciation in the same manner as other depreciable fixed assets. 
C)  Governments are required to record depreciation using a modified approach. 
D)  Governments do not record depreciation for infrastructure.

Question 9

The General Fund of the City of Plymouth purchased a police car in the amount of $28,000. Which of the following would be true?

Accepted Answer

A)  The government-wide Statement of Activities would report an expense of $28,000. 
B)  The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances would report an expenditure of $28,000. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The government-wide Statement of Activities would report an expense of $28,000. 
B)  The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances would report an expenditure of $28,000. 
C)  Both of the above. 
D)  Neither of the above.

Question 10

The City of Smithfield levied property taxes in and for 2017 in the amount of $300 million. During 2017, $280 million was collected, and $12 million was collected during the next 60 days. During the remainder of 2018 March - December, $3 million was written off and the remainder of the tax levy was collected. The adjustment, when moving from the governmental funds changes in fund balances to the governmental activities change in Net Position would be:

Accepted Answer

A)  $2 million increase. 
B)  $2 million decrease. 
C)  $5 million increase. 
D)  $5 million decrease. 
A)  $2 million increase. 
B)  $2 million decrease. 
C)  $5 million increase. 
D)  $5 million decrease.

Question 11

Which of the following is  not required to convert from the modified accrual basis to the accrual basis in preparing the government-wide statements?

Accepted Answer

A)  Record general capital assets 
B)  Change expenditures for debt service principal to reduction of liabilities 
C)  Make adjustments to revenues deferred because of the 60-day rule 
D)  Accrue interest on enterprise fund bonds 
A)  Record general capital assets 
B)  Change expenditures for debt service principal to reduction of liabilities 
C)  Make adjustments to revenues deferred because of the 60-day rule 
D)  Accrue interest on enterprise fund bonds

Question 12

A government reported, in its government-wide Statement of Net Position:
F1F1F1S1F1F1F10assets of $82 million, including $40 million in capital assets cost, with $12 million in accumulated depreciation, and
F1F1F1S1F1F1F10liabilities of $50 million, including long-term debt of $15 million related to capital asset acquisition.
In addition, $4 million of cash was restricted for payment of debt service. The government's Unrestricted Net Position would be reported as:

Accepted Answer

A)  $20 million. 
B)  $19 million. 
C)  $15 million. 
D)  $ 4 million. 
A)  $20 million. 
B)  $19 million. 
C)  $15 million. 
D)  $ 4 million.

Question 13

GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting.

Accepted Answer

A) True 
 B)False

Question 14

GASB specifically requires interest during construction in governments' funds to be capitalized in the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following categories is/are considered program revenues) in the Statement of Activities of a local government?

Accepted Answer

A)  A grant from the state to construct utility plant. 
B)  A motor fuel tax, restricted for road repairs. 
C)  Both of the above. 
D)  Neither of the above. 
A)  A grant from the state to construct utility plant. 
B)  A motor fuel tax, restricted for road repairs. 
C)  Both of the above. 
D)  Neither of the above.

Question 16

The governmental-type funds' Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances serve as inputs to the governmental activities sections of the government-wide statements. However, because the fund-basis statements reflect modified accrual accounting, they must be adjusted to the accrual basis.

Accepted Answer

A) True 
 B)False

Question 17

With regard to the government-wide statements, indicate the measurement focus and basis of accounting that should be employed.

Accepted Answer

The measurement focus and basi

Question 18

A government has bonds outstanding at the beginning of the current year. The debit in the worksheet entry to bring these on to the government-wide financial statements would be to:

Accepted Answer

A)  Proceeds from Sale of Bonds 
B)  Amount to be Provided for Long-Term Debt 
C)  Expenditures - Bond Principal 
D)  Net Position - beginning balance 
A)  Proceeds from Sale of Bonds 
B)  Amount to be Provided for Long-Term Debt 
C)  Expenditures - Bond Principal 
D)  Net Position - beginning balance

Question 19

The governmental funds report a total of $2,000,000 Transfers In and $1,500,000 Transfers Out. To consolidate governmental activities what amount will be eliminated from the Transfers In and Transfers Out accounts among the governmental funds?

Accepted Answer

A)  $500,000 
B)  $1,500,000 
C)  $2,000,000 
D)  $3,500,000 
A)  $500,000 
B)  $1,500,000 
C)  $2,000,000 
D)  $3,500,000

Question 20

When preparing the government-wide statements, an entry is required to record depreciation expense on general capital assets

Accepted Answer

A) True 
 B)False

The government-wide statements do not include a government-wide Statement of Cash Flows.

When converting from fund financial statements to government-wide statements, it is necessary to eliminate transfers that are between the categories of governmental activities and business-type activities.

When preparing government-wide financial statements, the modified accrual based governments funds are adjusted. List 5 items involving long-term debt that are likely to require adjustments.

With regard to the government-wide statements, distinguish between program revenues and general revenues. List three examples of each. What is the difference in reporting between program revenues and general revenues?

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 Position?

For the depreciation of infrastructure…

The General Fund of the City of Plymouth purchased a police car in the amount of $28,000. Which of the following would be true?

Which of the following is not required to convert from the modified accrual basis to the accrual basis in preparing the government-wide statements?

GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting.

GASB specifically requires interest during construction in governments' funds to be capitalized in the government-wide statements.

Which of the following categories is/are considered program revenues) in the Statement of Activities of a local government?

With regard to the government-wide statements, indicate the measurement focus and basis of accounting that should be employed.

A government has bonds outstanding at the beginning of the current year. The debit in the worksheet entry to bring these on to the government-wide financial statements would be to:

The governmental funds report a total of $2,000,000 Transfers In and $1,500,000 Transfers Out. To consolidate governmental activities what amount will be eliminated from the Transfers In and Transfers Out accounts among the governmental funds?

When preparing the government-wide statements, an entry is required to record depreciation expense on general capital assets

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Interfund Transactions

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 8: Government-Wide Statements: Capital Assets; Long-Term Debt

The government-wide statements do not include a government-wide Statement of Cash Flows.

When converting from fund financial statements to government-wide statements, it is necessary to eliminate transfers that are between the categories of governmental activities and business-type activities.

When preparing government-wide financial statements, the modified accrual based governments funds are adjusted. List 5 items involving long-term debt that are likely to require adjustments.

With regard to the government-wide statements, distinguish between program revenues and general revenues. List three examples of each. What is the difference in reporting between program revenues and general revenues?

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 Position?

For the depreciation of infrastructure…

The General Fund of the City of Plymouth purchased a police car in the amount of $28,000. Which of the following would be true?

Which of the following is not required to convert from the modified accrual basis to the accrual basis in preparing the government-wide statements?

GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting.

GASB specifically requires interest during construction in governments' funds to be capitalized in the government-wide statements.

Which of the following categories is/are considered program revenues) in the Statement of Activities of a local government?

With regard to the government-wide statements, indicate the measurement focus and basis of accounting that should be employed.

A government has bonds outstanding at the beginning of the current year. The debit in the worksheet entry to bring these on to the government-wide financial statements would be to:

The governmental funds report a total of $2,000,000 Transfers In and $1,500,000 Transfers Out. To consolidate governmental activities what amount will be eliminated from the Transfers In and Transfers Out accounts among the governmental funds?

When preparing the government-wide statements, an entry is required to record depreciation expense on general capital assets

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Interfund Transactions

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters