Chapter 18 Flashcards
The government-wide financial statements use the
a. Economic resources measurement focus and the accrual basis of accounting.
b. Current financial resources measurement focus and the accrual basis of accounting.
c. Economic resources measurement focus and the modified accrual basis of accounting.
d. Current financial resources measurement focus and the modified accrual basis of accounting.
a. Economic resources measurement focus and the accrual basis of accounting.
The financial statements for the governmental funds use the
a. Economic resources measurement focus and the accrual basis of accounting.
b. Current financial resources measurement focus and the accrual basis of accounting.
c. Economic resources measurement focus and the modified accrual basis of accounting.
d. Current financial resources measurement focus and the modified accrual basis of accounting.
d. Current financial resources measurement focus and the modified accrual basis of accounting.
According to GASB 34, infrastructure fixed assets
a. Must be capitalized and depreciated.
b. Must be capitalized, but governments do not have to depreciate them.
c. May be capitalized and depreciated.
d. Must be reported using the modified approach.
b. Must be capitalized, but governments do not have to depreciate them.
On which of the following government-wide financial statements would you find all liabilities of a state or local government?
a. Statement of net assets.
b. Statement of financial condition.
c. Statement of activities.
d. Statement of financial position.
a. Statement of net assets.
On which of the following financial statements would you find all of the capital assets of a local government?
a. Statement of net assets.
b. Statement of financial condition.
c. Statement of activities.
d. Statement of financial position.
a. Statement of net assets.
For which fund category is a statement of cash flows prepared?
a. Governmental.
b. Proprietary.
c. Fiduciary.
d. None of the above.
b. Proprietary.
Which of the following funds can be major assuming they meet the appropriate tests?
a. The parking meter special revenue fund and the water utility enterprise fund.
b. The fire station capital projects fund and a property tax agency fund.
c. The fire station bonds debt service fund and the city teachers pension trust fund.
d. The local symphony permanent fund and the Edwina Williams private-purpose trust fund.
a. The parking meter special revenue fund and the water utility enterprise fund.
Where in the basic financial statements would you find a description of the measurement focus and the basis of accounting used in the government-wide financial statements?
a. In the statement of net assets.
b. In the statement of activities.
c. In MD&A.
d. In the notes to the financial statements.
d. In the notes to the financial statements.
Where in the financial section of a CAFR would you find an analysis of the balances and trans- actions of individual funds?
a. In the government-wide financial statements.
b. In the fund financial statements.
c. In MD&A.
d. In the notes to the financial statements.
c. In MD&A.
On December 31, 20X1, Tiffin Township paid a contractor $2,000,000 for the total cost of a new firehouse built in 20X1 on township-owned land. Financing was by means of a $1,500,000 general obligation bond issue sold at face amount on December 31, 20X1, with the remain- ing $500,000 transferred from the general fund. What should be reported on Tiffin’s financial statements for the capital projects fund?
a. Revenue, $1,500,000; Expenditures, $1,500,000.
b. Revenue, $1,500,000; Other Financing Sources, $500,000; Expenditures, $2,000,000.
c. Revenue, $2,000,000; Expenditures, $2,000,000.
d. Other Financing Sources, $2,000,000; Expenditures, $2,000,000.
d. Other Financing Sources, $2,000,000; Expenditures, $2,000,000.
A municipality’s debt service fund is an example of which of the following types of funds?
a. Fiduciary.
b. Governmental. c. Proprietary.
d. Internal service.
b. Governmental.
Revenue of a governmental unit’s special revenue fund should be recognized in the period in which the
a. Revenue becomes available and measurable.
b. Revenue becomes available for appropriation.
c. Revenue is billable.
d. Cash is received.
a. Revenue becomes available and measurable.
Taxes collected and held by a municipality for a school district would be accounted for in a(n)
a. Enterprise fund.
b. Intra-governmental (internal) service fund.
c. Agency fund.
d. Special revenue fund.
c. Agency fund.
Interest expense on bonds payable should be recorded in a debt service fund
a. At the end of the fiscal period if the interest due date does not coincide with the end of the fiscal period.
b. When issued.
c. When legally payable.
d. When paid.
c. When legally payable.
Which of the following funds does not have a fund balance?
a. General fund.
b. Agency fund.
c. Special revenue fund.
d. Capital projects fund.
b. Agency fund.
Customers’ meter deposits that cannot be spent for normal operating purposes would most likely be classified as restricted cash in the balance sheet of which fund?
a. Internal service.
b. Private-purpose trust. c. Agency.
d. Enterprise.
d. Enterprise.
Which fund is not an expendable fund?
a. Capital projects. b. General.
c. Specialrevenue. d. Internal service.
d. Internal service.
If a governmental unit established a data processing center to service all agencies within the unit, the center should be accounted for as a(n)
a. Capital projects fund.
b. Internal service fund.
c. Agency fund.
d. Trust fund.
b. Internal service fund.
Recreational facilities run by a governmental unit and financed on a user-charge basis would be accounted for in which fund?
a. General.
b. Trust.
c. Enterprise.
d. Capital projects.
c. Enterprise.
Which of the following funds of a governmental unit uses the same basis of accounting as an enterprise fund?
a. Special revenue. b. Internal service. c. Permanent trust. d. Capital projects.
b. Internal service.
Which of the following funds of a governmental unit would account for long-term debt in the fund’s accounts? a. Special revenue. b. Capital projects. c. Internal service. d. General.
c. Internal service.
On August 1, 20X6, the City of Rockhaven received $1,000,000 from a prominent citizen to
establish a private-purpose trust fund. The donor stipulated that the cash be permanently invested and that the earnings from the investments be spent to support local artists. During the year ended June 30, 20X7, the fund received $50,000 of dividends from stock investments and earned $35,000 of interest from bond investments. At June 30, $5,000 of the interest earned had not yet been received. During the year ended June 30, 20X7, the trust fund spent $75,000 to support local artists.
For the year ended June 30, 20X7, the trust fund should report investment earnings of
a. $80,000. b. $50,000. c. $85,000. d. $35,000.
a. $80,000
On August 1, 20X6, the City of Rockhaven received $1,000,000 from a prominent citizen to
establish a private-purpose trust fund. The donor stipulated that the cash be permanently invested and that the earnings from the investments be spent to support local artists. During the year ended June 30, 20X7, the fund received $50,000 of dividends from stock investments and earned $35,000 of interest from bond investments. At June 30, $5,000 of the interest earned had not yet been received. During the year ended June 30, 20X7, the trust fund spent $75,000 to support local artists.
For the year ended June 30, 20X7, the trust fund should report the $75,000 spent to support local artists as a
a. Deduction.
b. Contracontribution.
c. Transferout.
d. Direct adjustment from fund balance.
a. Deduction.
Which of the following statements is (are) correct about agency funds?
I. Agency funds should report investment earnings only when they are both measurable and available.
II. Agency funds are reported on the proprietary funds’ statement of cashflows.
a. I only.
b. IIonly.
c. I and II.
d. Neither I nor II.
d. Neither I nor II.
Questions not included in flash cards:
E18-2 –> 7, 8, 9
E18-3 –> 1, 6, 8
E18-4 –> 4, 5, 6, 7, 8
