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2 out of 2 points
1
The following relate to the town of York Town Heights (dollar amounts in
thousands): All funds as identified for each transaction in (brackets) are correct?
$1,400 Equipment used in a vehicle repair service that provides services to other
Dept. (Asset in Internal Service Fund)
$8,000 Fees charged to, and collected from customers by the electric utility
(Enterprise Fund Revenue)
Selected Answers: T
Correct Answers: T
Question
0 out of 4 points
2
The schedule below reports the beginning balances and activity during the year in
a town's supplies fund. The government accounts for supplies on a purchases
basis. Fund Balance (unreserved 1/1) $400 Fund Balance (reserved for
encumbrance 1/1) $240 Fund Balance (reserved for inventory 1/1) $170 Total
fund balance, January 1 $810 Appropriations $3,400 Actual Revenues $3,200
Supplies ordered $3,160 Supplies received $3,360 Supplies paid-for $2,800
Supplies used $3,280 Reserve for Encumbrance is :
Selected Answers: F
Correct Answers: F
Question
0 out of 3 points
4
Selected Answer: T
Correct Answer: F
Question
3 out of 3 points
5
Governmental closing entries includes Debiting Appropriation and Crediting
Estimated Revenues and in certain situations credit Fund Balance.
Selected Answer: T
Correct Answer: T
Question
3 out of 3 points
6
Selected Answer: 2
Correct Answer: 1
Question
0 out of 1 points
10
Unused sick LEAVE should be accrued only insofar as employers expect to
compensate employees for the leave as a termination benefit. In this case, the
leave only accumulates: it does not vest. Thus, the city will not have to
compensate employees for leave not taken as a termination benefit. It should
charge as an expenditure only the amount that was liquidated with expendable
financial resources. It need not report a liability even on the government-wide
statement of net assets. (Government Fund, e.g., Dr. Sick Leave Exp and Cr.
Cash)
Selected Answer: F
Correct Answer: T
Question
1 out of 1 points
11
The city of Alpine incurred the following costs during the year in its property
tax collection department: (Salaries $400k, Purchase of computer equipment
$10k, Purchase of power $40k and Supplies $5k)
Selected Answer:
Correct Answer:
Question
3 out of 3 points
16
The school district adopts a budget calling for total revenues of $400 million
and total expenditures of $390 million. After recording the estimated revenues
and appropriations, the impact to the fund balance will be:
Selected Answer: T
Correct Answer:
Question
0 out of 2 points
18
On January 1, the township defeased in substance $400k of bonds that had been
issued years earlier to construct the bridge. The bonds had been issued at par. To
effect the transaction the township issued $405k of new bonds, at par, and
placed the proceeds in a trust. The old bonds have a coupon rate of 5 percent,
the new bonds have a coupon rate of 4 percent. What amount should Luling
report in its December 31, 2008 financial statements as: Bond proceeds in its
capital project fund.
The budgeted and actual revenues and expenditures of Meadow Twonship for a
recent year (in millions) were as presented in the schedule that follows:
1. Prepare the Journal Entry to record the budget and net change in the Fund
Balance
Bud Actual
Selected
Answer:
Revenues $11.5, Credit Appropriations $10.3, Fund Balance
$1.2 & (net change = $0.6)
Correct
Answer:
Estimated Revenues $11.2, Credit Appropriations $10.6, Fund
Balance $0.6 & (net change = $1.2)
Question
0 out of 5 points
21
5. amount of investment income that the city should recognize in its debt service
fund and
1/1/2007, the city purchase as a ninvestment for its debt service fund a fifteen-
year, 6% $1 million bond for $998k. During the year it received $30k in interest.
At year-end the market value of the bond was $999,500.
12/31/ 2006, the Foundation for the Arts pledged to donate $1, up to a max of $1
million, for each $3 that the museum is able to collect from other private
contributions. The funds are to finance construction of the city-owned art
museum. During 2007, the city collected $900k and received the matching
matching money from the Foundation. In January and February 2008 it
collected an additional $2,400,000 and also received the matching money.
20007 During the year the city imposed license fees on street vendors. All
vendors were required to purchase the licenses by 9/30/07. The licenses cover
the one-year period from 10/01/07 through 9/30/08. During 2007 the city
collected $240k in license fees
2007 The city sold a fire truck for $40k that it had acquired five years earlier for
$250k. At the time of sale the city had charged $225k in depreciation
The main types of transactions accounted for in Capital Projects Funds are
Authorizing the Project and Recording the budget, Issuing the Bonds to finance
the Project, Transferring the Premium to the Debt Service Fund if exists,
Encumbering Available Resources, Recording Grants, Recording Expenditures,
Recognizing Investment Earnings on temporarily available cash and closing
entries if the government needs to prepare statement that shows revenues and
expenditure for a particular year ( if the budget was for the entire project, not for
a particular year, the accounts can remain open until the completion of the
project.). Given the aforementioned facts, identify the type of transactions
represented by the journal entries below.
Selected Answer: F
Correct Answer: T
Question
0 out of 1 points
25
Selected Answer: F
Correct Answer: T
Question
3 out of 3 points
27
To journalize the governmental budget, you must Dr. Estimated Revenues and
always credit Apropriation + Fund Balance.
Selected
Answer:
Performance substantially completed, earned and
Collectible
Standards of competency
Selected Answer:
Correct Answer:
Question
1 out of 1 points
42
Vacation LEAVE should be accrued as a liability as long as employees have
earned the time off and the employer is expected to compensate employees for it
in the future. However, only the portion of the liability expected to be liquidated
with expendable available financial resources should be reported as a
governmental fund obligation. The balance should be reported as a liability on
the government-wide statement of net assets (e.g. Dr. Vacation pay Expenditure
and Cr. Cash - Government Fund).
Selected Answer: T
Correct Answer: T
Question
2 out of 2 points
43
Sue City has outstanding $5 million in general obligation term bonds used to
finance the construction of the new City Library. Sue City has a June 30 fiscal
year-end. Interest at 6% is payable each January 1 and July 1. The principal of
the bonds is due 10 years in the future. The City budgeted the July 1, 2006
interest payment in the budget for the fiscal year ended June 30, 2006. On June
30, cash was transferred from the General Fund to the Debt Service Fund to
make the required payment. The maximum amount of interest payable that may
be included on the balance sheet of the debt service fund of Sue City at June 30
would be
Question
3 out of 3 points
1
Selected Answer: T
Correct Answer: T
Question
3 out of 3 points
6
A government places an order for a particular item of equipment and encumbers
$5,500. The item arrives accompanied by an invoice for $5,200. The entries that
the government should make should include (but not necessarily be limited to):
Selected Answer: F
Correct Answer: F
Question
0 out of 1 points
8
Vacation LEAVE should be accrued as a liability as long as employees have
earned the time off and the employer is expected to compensate employees for it
in the future. However, only the portion of the liability expected to be liquidated
with expendable available financial resources should be reported as a
governmental fund obligation. The balance should be reported as a liability on the
government-wide statement of net assets (e.g. Dr. Vacation pay Expenditure and
Cr. Cash - Government Fund).
Selected Answer: T
Correct Answer: T
Question
0 out of 2 points
10
The following relate to the town of York Town Heights (dollar amounts in
thousands): All funds as identified for each transaction in (brackets) are correct?
$1,400 Equipment used in a vehicle repair service that provides services to other
Dept. (Asset in Internal Service Fund)
$8,000 Fees charged to, and collected from customers by the electric utility
(Enterprise Fund Revenue)
Question
3 out of 3 points
11
Culver City recognizes as revenues/expenditures those amounts collected/paid
during the year or within 60 days of fiscal year-end. The City offers a
pension benefit to its employees who meet certain age and years of
employment criteria. The City participates in the State Pension Plan. The
City s actuarially determined contribution requirement to the State Pension
Plan for the fiscal year ended 6/30/07 is $4 million. Due to cash inflow
shortages the City, which budgeted $4 million for pension payments, paid
only $3 million in the fiscal year ended 6/30/07. The City paid the
remaining amount on September 30, 2007. Assuming the City maintains its
books and records in a manner that facilitates the preparation of its fund
financial statements, what is the appropriate entry to record the pension
payments and recognize any associated liability?
Selected Answer:
Correct Answer:
Question
3 out of 3 points
12
Selected Answer: F
Correct Answer: T
Question
1 out of 1 points
17
Both governments and not-for-profit entities do not have ownership interest as
in for-profit entities?
Selected Answer: T
Correct Answer: T
Question
3 out of 3 points
18
The schedule below reports the beginning balances and activity during the year
in a town's supplies fund. The government accounts for supplies on a purchases
basis. Fund Balance (unreserved 1/1) $400 Fund Balance (reserved for
encumbrance 1/1) $240 Fund Balance (reserved for inventory 1/1) $170 Total
fund balance, January 1 $810 Appropriations $3,400 Actual Revenues $3,200
Supplies ordered $3,160 Supplies received $3,360 Supplies paid-for $2,800
Supplies used $3,280 Reserve for Inventory:
To journalize the governmental budget, you must Dr. Estimated Revenues and
always credit Apropriation + Fund Balance.
Selected Answer: F
Correct Answer: F
Question
0 out of 1 points
21
The city invests $15m in US Treasury notes so as to earn a return on temporarily
available cash. As of year-end, it has earned $0.150m in interest, but it does not
expect to actually receive the interest until the notes mature. You should debit
the Marketable securities and credit Investment revenue to observed chapter 4
GASB pronouncements that require that appreciation in the fair value of
investments be recognized as revenue.
Selected Answer: F
Correct Answer: T
Question
3 out of 3 points
22
To close the budgetary accounts assuming appropriation/expenditure were
$390m and estimated revenues/revenues were $400m, the closing entries
includes
The budgeted and actual revenues and expenditures of Meadow Twonship for a
recent year (in millions) were as presented in the schedule that follows:
1. Prepare the Journal Entry to record the budget and net change in the Fund
Balance
Bud Actual
Selected
Answer:
Estimated Revenues $11.2, Credit Appropriations $10.6, Fund
Balance $0.6 & (net change = $1.2)
Correct
Answer:
Estimated Revenues $11.2, Credit Appropriations $10.6, Fund
Balance $0.6 & (net change = $1.2)
Question
3 out of 3 points
26
Central City was awarded two state grants during its fiscal year ending
September 30, 2008: a $2 million block grant that can be used to cover any
operating expenses incurred during fiscal 2009, and a $1 million grant that can
be used any time to acquire equipment for its police department. For the year
ending, September 30, 2008, Central City should recognize in grant revenue in
its funds statements (in millions)
Selected Answer: 1
Correct Answer: 1
Question
3 out of 3 points
27
The primary objective of a not-for-profit organization or a government is to
Selected Answer:
Correct Answer:
Question
1 out of 1 points
29
Revenues Under GASB can be recognized when it is
The main types of transactions accounted for in Capital Projects Funds are
Authorizing the Project and Recording the budget, Issuing the Bonds to finance
the Project, Transferring the Premium to the Debt Service Fund if exists,
Encumbering Available Resources, Recording Grants, Recording Expenditures,
Recognizing Investment Earnings on temporarily available cash and closing
entries if the government needs to prepare statement that shows revenues and
expenditure for a particular year ( if the budget was for the entire project, not for
a particular year, the accounts can remain open until the completion of the
project.). Given the aforementioned facts, identify the type of transactions
represented by the journal entries below.
Selected Answer: F
Correct Answer: F
Question
1 out of 1 points
32
Full Accrual basis of accounting captures
Selected Answers: F
Correct Answers: F
Question
0 out of 5 points
39
5. amount of investment income that the city should recognize in its debt service
fund and
1/1/2007, the city purchase as a ninvestment for its debt service fund a fifteen-
year, 6% $1 million bond for $998k. During the year it received $30k in interest.
At year-end the market value of the bond was $999,500.
12/31/ 2006, the Foundation for the Arts pledged to donate $1, up to a max of $1
million, for each $3 that the museum is able to collect from other private
contributions. The funds are to finance construction of the city-owned art
museum. During 2007, the city collected $900k and received the matching
matching money from the Foundation. In January and February 2008 it
collected an additional $2,400,000 and also received the matching money.
20007 During the year the city imposed license fees on street vendors. All
vendors were required to purchase the licenses by 9/30/07. The licenses cover
the one-year period from 10/01/07 through 9/30/08. During 2007 the city
collected $240k in license fees
2007 The city sold a fire truck for $40k that it had acquired five years earlier for
$250k. At the time of sale the city had charged $225k in depreciation
The city of Alpine incurred the following costs during the year in its property
tax collection department: (Salaries $400k, Purchase of computer equipment
$10k, Purchase of power $40k and Supplies $5k)
Selected Answer:
Correct Answer: