Under GASB rules for the financial reporting entity
According to GASB Statement No. 44, all of the following is a recommendation category for the CAFR s statistical section EXCEPT
Which of the following choices regarding the government-wide Statement of Net Assets is true?
Which of the following choices regarding the government-wide Statement of Activities is true?
Which of the following choices regarding the government-wide Statement of Activities is true?
Which of the following choices regarding the proprietary fund financial statements is true?
Which of the following choices regarding the fiduciary fund financial statements is true?
All of the following is likely to be recorded in a special revenue fund EXCEPT
Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called
A local government was awarded a federal grant in the amount of $600,000 to provide for a summer employment program for young people. The grant was a reimbursement grant and was awarded on April 30, 2009. The local government expended the resources as follows: June, 2009, $220,000; July 2009, $200,000; August, 2009, $180,000. The federal government provided the funds the following months. The local government would recognize revenues for the fiscal year ended June 30, 2009 in which amount
A donor pledged $100,000 to the fund raising drive of a local government to assist its police officers in obtaining the latest technology. The pledge was made on July 16, 2008 but was conditioned on the government raising an additional $100,000 from other donors. By the fiscal year-end of June 30, 2009, the local government had raised only $5,000 from other donors. What entry would be made for the initial pledge by the local government during the year ended June 30, 2009
The General Fund of the City of Richmond approved a tax levy for the calendar year 2009 in the amount of $1,600,000. Of that amount, $30,000 is expected to be uncollectible. During 2009, $1,400,000 was collected. During 2010, $100,000 was collected during the first 30 days, $40,000 was collected during the next 30 days and $30,000 was collected during the next 30 days. During the postaudit, you discovered that the city showed $1,570,000 in revenues. What adjusting entry would you need to make, assuming you decided to allow the maximum amount of revenues for 2009, using modified accrual accounting
The City of Greenville had a balance in the Reserve for Encumbrances account at the end of 2008 in the amount of $30,000. During 2009, all purchase orders related to the $30,000 were filled and the invoice amount was $30,500. Which of the following would be true regarding the Statement of Revenues, Expenditures and Changes in fund balances for 2009? (assume encumbrances do not lapse)
Under modified accrual accounting, revenues are recognized when measurable and
The City of Lonesome Pines levied property taxes for the fiscal year ended June 30, 2009 in the amount of $8,000,000. It is estimated that 2% will not be collected. During the year ended June 30, 2009, $7,200,000 in property taxes were collected. It is estimated that $400,000 will be collected during the next 60 days, $240,000 will be collected after 60 days and $160,000 will not be collected. What is the maximum amount Lonesome Pines can recognize as property tax revenue for the fiscal year ended June 30, 2009 in its Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances, assuming there were no unpaid property taxes at the end of the previous year
What is the effect on the General Funds unreserved fund balance when capital assets are purchased during a year from General Fund revenues?
The initial transfer of cash from the General Fund to establish a motor pool internal service fund would require the General Fund to credit cash and debit
When supplies ordered by a governmental unit are received at an actual price which is more than the estimated price on the purchase order, the Encumbrance Control account is
Which of the following accounts of a governmental unit is debited when supplies previously ordered are received
Which of the following accounts of a governmental unit is credited to close it at the end of the fiscal year?
The Expenditures control account in the General Fund is debited when
Prepare journal entries for nonexchange transactions on government-wide and fund statements. Each of the following is one of the four classes into which nonexchange transactions apply in accordance with GASB Statement No. 33 EXCEPT
Property taxes, special assessments, and fines and forfeits are types of nonexchange transactions, and assets should be recognized when an enforceable legal claim exists or when the resources are received, whichever is first. These are examples of
Under the modified accrual basis of accounting, GASB standards for property tax revenue recognition provide that revenue should not be recognized for property taxes collected
When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term note is desirable and secured by a government’s power to tax
What is a Special Revenue Fund
Expenditures are generally recorded and fund liabilities are recognized
When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant under GASB Statement 33
Funds that are used to account for activities similar to those often engaged in by profit-seeking businesses are
Proprietary funds utilize what basis of accounting
Activities that produce goods or services to be provided to other departments or other governmental units would be reported in which fund?
Governmental units use which fund type to account for services provided to the general public on a user-charge basis
The estimated costs of closure of solid-waste landfills are measured using
In the Statement of Net Assets for proprietary funds, GASB requires a classified format where current assets, noncurrent assets, current liabilities, and noncurrent liabilities are presented
Impact fees imposed on commercial developers by an enterprise fund and not associated with specific projects or improvements are recorded as
Ford County levies for its General Fund $1,000,000 in property taxes. In addition, the county is responsible for collecting $2,000,000 in property taxes for the consolidated school district and $500,000 in property taxes for a town within the county. 2% of all taxes levied are expected to be uncollectible. When recording the levies in an agency fund, what amount would Ford County record as Taxes Receivable for Other Governments Current and Due to Other Governments
GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, applies to all of the following investment types EXCEPT
The City of Sycamore has investments in bonds. These bonds have an amortized cost of $998,000 and a market value of $1,001,000. The market value is quoted and available in the financial press. The original cost of the bonds was $996,000. The par value at maturity will be $1,000,000. The amount at which the investments would be reported is
The tax agency fund of Fulton County collected $6,000,000 for a school district, $3,000,000 for the county general fund, and $4,000,000 for a municipality. County general fund employees handle the collections and a 3% collection fee is charged all units except the county. The total amount of revenue recognized by the county general fund would be
The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan, and a statewide agency plan. The city would include in its CAFR financial statements for
A statewide pension plan exists for all local governments in a certain state. The provisions of the plan indicate that each qualifying retiree receive 2% multiplied by the number of years active employment multiplied by the average salary for the past four years of service. The government calculates the actuarial liability on a statewide basis, not by individual government. The plan would be known as a
The County of Churchville is trustee for a multi-government investment pool and has established an investment trust fund. Included in the investment trust fund, for management purposes, are investments in the amount of $15 million from the County’s General Fund, $2 million from the County’s special revenue funds, and $112 million from other governments. Which of the following would be true
Which two governmental funds are commonly used to acquire capital assets
When a purchase order is issued under a Capital Projects Fund, how should the transaction be recorded
Which disqualifies a lease as a capital lease
If taxes or special assessments are levied by the General Fund and then transferred to the debt service fund, they are
In which fund type is interest on long-term debt typically not accrued, yet is recognized as an expenditure in the year in which interest is legally due
What type of serial bond schedules an increase each year in annual principal repayment approximately equivalent to the decrease in interest payments?
How would the government account for the unused bond proceeds
In its Statement of Net Assets, a government reported: Assets of $90 million including $30 million in capital assets (net) and liabilities of $50 million including long-term debt of $15 million all related to capital asset acquisition.
The government also reported $5 million of net assets that were restricted for payment of debt service. The government’s unrestricted net assets would be reported as
A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $2 million. Capital assets for that government cost $70 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 net assets would reflect
The City of Charlotte levied property taxes in 2009 in the amount of $10 million. It is estimated that 2% will be uncollectible. During 2009, $9,000,000 was collected and it is anticipated that $400,000 will be collected during the next 60 days. When moving from the changes in fund balances in the Statement of Revenues, Expenditures and Changes in Fund Balances to the changes in net assets in the Statement of Activities, what will be the adjustment
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 assets for governmental activities in the Statement of Activities would be a
A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $1,000,000; (2) a transfer from the General Fund to an enterprise fund in the amount of $1,200,000; and (3) a transfer from the General Fund to an internal service fund in the amount of $400,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be
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 $350,000. 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 assets for governmental activities in the Statement of Activities would be
A government incurred expenses for its infrastructure as follows: $15 million for general repairs; $13 million to extend the life of existing infrastructure; and $12 million for additions and betterments. The government chooses to use the modified approach to record infrastructure. The infrastructure has a basis of $400 million and would be depreciated over a 40 year life, if depreciation were charged. The amount that would be shown as expense in the Statement of Activities would be
Under GASB rules for the financial reporting entity
According to GASB Statement No. 44, all of the following is a recommended category for the CAFR’s statistical section EXCEPT
Which of the following choices regarding the government-wide Statement of Activities is true
D. Indirect program expenses may not be allocated to the other functional areas.
Which of the following statements regarding the government-wide Statement of Activities is true
Which of the following choices regarding the proprietary fund financial statements is true
Which of the following regarding the fiduciary fund financial statements is true?
The FASB has the authority to set accounting standards for all of the following organizations EXCEPT
The three classes of net assets required to be presented by a private college or university are
According to NACUBO guidelines, what is the correct treatment for recognizing summer school revenues and expenses when a college’s fiscal year ends on June 30
penses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises.
All the following choices are considered a split-interest agreement according to the
C. charitable gift annuities
D. pooled (life) income funds
A private university received $18,000,000 in tuition and fees during an academic year. Graduate assistantships, for which services were required, were awarded in the amount of $1,200,000. Scholarships, for which no services were required, were awarded in the amount of $1,400,000. The net tuition and fees that would be reported in the Statement of Activities would be
In 2008 a faculty member at a private college received a grant from the National Science Foundation to conduct basic research on tree frogs in the amount of $350,000. Expenses associated with the grant totaled $225,000 in 2009. In the Statement of Activities for 2009, the college should show
A. revenues of $350,000 and expenses of $225,000 in Temporarily Restricted Net Assets
A donor made a cash contribution of $50,000 to a private college for the purpose of acquiring a building. The private college properly recorded the gift of cash as a temporarily restricted revenue. When the building is acquired, the college should
A. record the building as permanently restricted
All the following choices would be considered a special-purpose government for financial reporting purposes EXCEPT
A. a public school system
Special purpose local governments engaged only in fiduciary-type activities are required to prepare all of the following financial reports EXCEPT
Assume a government is a special-purpose entity engaged in fiduciary activities only. Which of the following financial statements would be required
Assume a government is determined to be a special-purpose government engaged in business-type activities only. Which of the following financial statements would be required
Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be required
A public college had tuition and fees of $20,000,000. Scholarships, for which no services were required, amounted to $2,000,000. Graduate assistantships, for which services were required, amounted to $1,000,000. The amount to be reported by the public college as net tuition and fees would be
A public college had tuition and fees for the year ended June 30, 2009 in the amount of $45,000,000. Scholarships, for which no services were required, amounted to $2,500,000. Graduate assistantships, for which services were required, amounted to $2,300,000. The amount to be reported by the college for net tuition and fee revenue would be
Which organization promulgates the Government Auditing Standards
Under the terms of the Single Audit Act and its amendments, what percentage of federal awards expenditures must be selected for audit
The term opinion unit refers to which of the following
All of the following are considered to be a major user group by the GASB EXCEPT
To compute the net debt per capita, what would a user of financial statements need to look at in the CAFR
C. The debt in the governmental funds Balance Sheet, the amount available in the government-wide Statement of Net Assets, and the population from the statistical section
D. All three items from the government-wide Statement of Net Assets
In order to compute the operating ratio-enterprise funds, one would look in the CAFR
D. In the proprietary funds Statement of Cash Flows
In order to compute the ratio unreserved fund balance/revenues-General Fund, what would one look at in the CAFR?
The fund statements for governmental funds are presented using
What type of fund is used when resources are provided mainly through business like transactions to parties external to the government
Why did governmental accounting practices develop with a focus on the sources and uses of expendable funds rather than on net income
Financial reports for state and local governments are used for all the following EXCEPT to
A. assess financial condition and results of operations
Which of the following funds is used to account for the payment of principal and interest of general long-term debt of a government
The GASB is under the oversight of
Which of the following choices is a permanent fund classified under governmental funds?