6

Question 1

Finance lease should be recorded at:

Answer 1

The present value of the minimum lease payments.

Question 2

In a sales type lease, any difference between the FV of the leased asset and the carrying value is recognized as:

Answer 2

manufacturers or dealers profit.

Question 3

the excess of the present value of the selling price over the cost is considered:

Answer 3

profit

Question 4

When a lease is capitalized because of a transfer of title or a written purchase option, the depreciation would be over:

Answer 4

the useful life of the leased asset and not the lease term.

Question 5

In a financing lease the difference between the FV of the leased asset and its cost at inception is recognized as:

Answer 5

a gain or loss.

Question 6

Governmental funds: Fund accounting summary (modified accrual basis of accounting and current financial resources measurement focus)

Answer 6

GRASPP
GENERAL
special REV
And 
debt SERVICE
capital PROJECTS
PERMANENT

Question 7

Governmental funds: Fund accounting summary (modified accrual basis of accounting and current financial resources measurement focus)

Answer 7

GRA
ral
special Rev
And 
debt Service
capital Projects
Permanent

Question 8

Proprietary and Fiduciary funds: Economic resource measurement focus and full accrual accounting

Answer 8

SE - CIPPOE
Service 
Enterprise
Custodial
Investments 
Private purpose trust
Pension and Other Employee trust

Question 9

GASB 34 includes provisions for:

Answer 9

Gov-wide financial statements prepared using accrual, fund FS, notes to the financial statement and required supplementary information that encompasses a actual comparisons including display of the originally adopted budget and changes that resulted in the final amended budget.

Question 10

One of the major components of MD&A (as part of the local governments is to compare current year results with:

Answer 10

Prior year, with emphasis on the current year.

Question 11

REquired supplementary information is presented:

Answer 11

before MD&A or after the basic financial statements., not among the notes to the financial statements.

Question 12

Journal entry to record a capital lease that represents the acquisition of an asset (of a governments unit)

Answer 12

DR. Expenditure - Capital lease

CR. OFS - Capital lease

Question 13

permanent funds are used to account for principal that is:

Answer 13

restricted and may net be expended. Earnings must be used for a purpose that benefits the public.

Question 14

In a permanent fund, investments are typically held at:

Answer 14

fair value

Question 15

Special revenues fund is used to account:

Answer 15

revenues from specific taxes to finance particular activities of government.

Question 16

What account should be debited in the general fund when the principal portions of the payments is financed by the general fund?

Answer 16

Expenditures control

Question 17

NFP organizations are considered interrelated orgs in the event that one of the orgs, is:

Answer 17

both able to influence the operations of the other and has an ongoing economic interest in the net assets of the other.

Question 18

MArketable securities are reported on the statement of activities at:

Answer 18

The FMV with gains and losses reported on the statement of activities.

Question 19

How should NFP orgs classify fains and losses on investments purchased with endowment assets with donor restrictions?

Answer 19

reported in teh statement of activities as an increase or decrease in net assets, unless restricted by donor or by law.

Question 20

Equity instruments issued for ee services must be valued at

Answer 20

the date of grant