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

When preparing government-wide financial statements, the modified accrual basis governmental funds are adjusted for all of the following events except?

When using the modified approach to account for infrastructures, expenditures to extend the life of the infrastructure assets are:

Which of the following is not a reconciliation required by GASB?

A local government recorded the payment of bond principal by debiting Expenditure: bond principal and crediting Cash. What is the worksheet entry when preparing the government-wide statements?

When preparing the government-wide statements, an adjustment is required to eliminate the charge to expenditures for capital outlay and to record those expenditures as capital assets.

Which of the following is true regarding the preparation of government-wide statements?

A government's Statement of Revenues, Expenditures, and Changes in Fund Balances reflected expenditures for debt service in the amount of $12,000,000, including $7,000,000 for interest. It also reflected proceeds of bonds in the amount of $4,000,000. No interest accruals were involved. When moving from the changes in fund balances reported for the governmental funds to the change in Net Position for governmental activities, the net change would be:

Identify and describe the required supplementary information schedules that must be prepared when using the modified approach for infrastructure.

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

A donated collection is not required to be capitalized. If a government decides notto capitalize them, how will they be accounted for at the time of the donation?

Which of the following statements is not correct with respect to the preparation of government-wide statements?

In its government-wide Statement of Net Position, a government reported assets of $165 million, including $70 million in capital assets net of depreciation), and liabilities of $80 million, including long-term debt of $60 million, $50 million of which was issued to acquire capital assets. In addition, $30 million was restricted for debt service and other purposes. The government's Unrestricted Net Position would be reported as:

A government's Statement of Revenues, Expenditures, and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000. That statement also reflected expenditures for debt service in the amount of $3,000,000, including $2,600,000 for principal payments. Assuming no other changes, the effect, when moving from the change in fund balances in 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 a:

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

Internal service funds are most commonly reported in which section of the Government-wide financial statements?

The term "general long-term debt" represents debt that is to be paid out of general government resources.

Where in the basic financial statements, most commonly would one find internal service fund assets reported?

A government reported an Other Financing Source in the amount of $600,000 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 $150,000. The adjustment in the reconciliation when moving from the changes in fund balances in the Statement of Revenues, Expenditures, and Changes in Fund Balances to the change in Net Position in the Statement of Activities would be:

The City of Odessa maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements. As such, the City's internal service fund, a print shop fund, is included in the proprietary funds statements. Required: Prepare necessary adjustments in order to incorporate the internal service fund in the government-wide statements as a part of governmental activities: A. Balance sheet accounts include: Cash, $210,000; Inventories, $425,000; Capital Assets, $1,400,000; Accumulated Depreciation, $600,000; Accounts Payable, $350,000; and Bonds Payable, $500,000. B. The only transaction in the internal service fund that is external to the government is interest expense in the amount of $15,000. C. Exclusive of the interest expense, the internal service fund reported operating income of $65,000. An examination of the records indicates that services were provided as follows: one half to general government, one fourth to public safety, one fourth to culture and recreation.

The City of Eugene reported property tax revenues in 2017 in the amount of $10 million. The deferred inflow - property taxes reported in the General Fund's balance sheet was $ 475,000 on December 31, 2016 and was $ 400,000 on December 31, 2017. During 2017, $9,000,000 was collected. What amount should the city report for Property Tax Revenue in its year ended December 31, 2017 government-wide Statement of Activities?