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

Government-wide statements are prepared using the modified accrual basis; therefore, governmental fund-basis statements need to be adjusted from their original accrual basis.

When converting to government-wide financial statements, the entry to record the amortization of the premium on a bond would:

General long-term debt, to be paid out of resources of the government's taxing power, is reported in both the governmental fund Balance Sheet and the government-wide Statement of Net Position.

To qualify as a collection, a donated or purchased item must meet all of the following conditions except:

Which of the following is true regarding revenue recognition for sales taxes, when reporting in the government-wide statements?

The difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation, is known as:

Fiduciary activities do not appear in the government-wide statements.

Which of the following funds would not be included in the government-wide financial statements

The City of Charlestown levied property taxes in the amount of $10,000,000. The taxes were levied July 1, 2016 for the fiscal year ended June 30, 2017. During the year ended June 30, 2017, $8,900,000 in property taxes were collected from this levy. It is estimated that $620,000 will be collected during the next 60 days, $300,000 will be collected more than 60 days after June 30, 2017, and $180,000 will never be collected. -When preparing the General Fund financial statements, how much property tax revenue should be recognized from this levy for the year ended June 30, 2017?

Internal Service Funds are most commonly included in the business-type activities category of the government-wide statements.

Which of the following is true regarding the government-wide Statement of Activities?

When preparing the government-wide statements, a worksheet entry is required to eliminate the current period expenditures for capital outlay and record those expenditures as capital assets

If an Internal Service Fund has positive operating income, the worksheet entry to add the Internal Service Fund to governmental activities would include a:

Debt margin is the difference between the amount of debt limit outstanding and the amount of indebtedness allowed by law.

The governmental funds follow __________ where the government-wide statements follow ___________.

Enterprise funds are reported in the business-type activities column of the government-wide statements.

The total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time is known as:

A governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances reported of $30 million, including capital outlay expenditures of $9 million. Capital assets for that government cost $90 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in would reflect aan:

Which of the following is true regarding the reporting of general capital assets by state and local governments?

A government reported the following transfers in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances: 1) a transfer from the General Fund to a special revenue fund in the amount of $500,000; 2) a transfer from the General Fund to an enterprise fund in the amount of $400,000; 3) a transfer from the General Fund to a permanent fund in the amount of $100,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be: