Far - State & Local Governments Flashcards
Community College, a public institution, had the following encumbrances at December 31, 20x1:
- Outstanding purchase orders $12,000
- Commitments for services not received 50,000
What amount of these encumbrances should be reported as liabilities in community’s-balance sheet at December 31, 20x1?
$0
Encumbrance
Restriction placed on the use of funds to ensure that there will be sufficient cash available to pay for specific obligations.
A state operated college created a link website to allow alumni to contribute to the college. During August an alumna pledged to contribute $58,500 during the next fiscal year to be used to provide scholarships to female engineering students. Another contribution of $37,000 was received in cash from an alumnus who also designated the funds be used to fund student scholarships. All of the cash contribution was used for scholarships except $2,500. What amount of contribution revenue should the university report in its statement of activities?
$95,500
A state had general obligation bonds outstanding that required payment of interest on July 1 and January 1 of each year. State law allowed for the general fund to make debt payments without the use of a fiscal agent. The fiscal year ended June 30. Which of the following accounts would have decreased when the state paid the interest due on July 1?
Fund balance
When a purchase order is issued, a commitment is made by a governmental unit to buy a computer to be manufactured to specifications for use in property tax administration. This commitment should be recorded in the general fund as:
Encumbrance
The expenditure element “salaries and wages” is an example of which type of classification?
Object
In which situation(s) should property taxes due to a governmental unit be recorded as deferred revenue?
- Property taxes receivable are recognized in advance of the year for which the are levied.
- Property taxes receivable are collected in advance of the year in which they are levied.
Both 1 and 2
A government wide statement of net position must include which of the following?
A distinction between governmental and business type activities
How would a municipality that uses modified accrual and encumbrance accounting record the transaction of the receipt of supplies from approved purchase orders and the approval f the related invoices?
Debit expenditures control
Noting that interest rates are declining Blue Township opted to retire and existing, callable general obligation bond and replace it with a new bond issue with lower interest. A $4,000,000, 5% bond originally issued at par value with 15 years remaining was retired for $4,100,000. A new $4,000,000, 2%, 30-year bond waS issued. The new bond. Issue was sold at 104 and printing, legal, and administrative costs for the transactions were paid in an amount of $5,000. On the fund financial statements, this refunding would result in:
$4,100,00 of other financing issues, $5,000 of expenditures, and $4,160,000 of other financing sources to the debt service fund.
The statement of activities in the government-wide financial statements includes which of the following?
A separate section at the bottom of the statement hat shows program and general revenues.
(There is no requirement that these statements present separate columns for each major or non major governmental fund.)
Texas A&M University, a publicly held institution, is required to report under the standards of which of the following bodies?
Primarily GASB
When preparing the balance sheet of governmental funds statements, which of the following statements is INCORRECT?
No major funds should be reported individually in a separate column.
2422.01
The measurement focus of governmental fund accounting is on which of the following?
Current financial resources
Which of the following statements meet the measurement and recognition criteria for landfill closure and post-closure costs?
Equipment and facilities included in estimated total current costs of closure and post closure car should not be reported as capital assets.
For governmental fund types, which of the following does NOT identify the primary characteristics of the structure?
Flows and balances of financial resources.
2412.01 and 2412.02
In preparing Chase City’s reconciliation of the statement of revenues, expenditures, and changes in fund balances to the government wide statement of activities, which of the following items should be subtracted from changes in fund balance?
Book value of capital assets sold during the year.
2422.01 and 2422.02
A state imposes a 5% tax on sales of goods by retail merchants. Legislation requires the state (provider) to remit one sixth of the sales tax to cities and countries (recipients) on a quarterly basis. No annual appropriation is required. The cities and countries may use the resources for any governmental program. Sheen would the provider recognize a liability to recipient?
When the underlying transaction takes place.
2421.04, 2445.02, 2446.01
Reporting of general infrastructure assets by all public institutions that report as special purpose governments either engaged only in governmental activities or engaged in both governmental and business type activities is:
Required using the full governmental model.
2424.02 and 2452.05
John City entered into a lease for equipment during the year. How should the asset obtained through the lease be reported in John City’s government wide statement of net position?
General capital asset.
2421.03, 2443.01, 2443.02, 2443.03, 2443.09, 2444.02, 2445.05
State and local governments have various sources of revenue
When revenues restricted to a particular function are derived from parties outside the reporting governments constituency, these revenues are classified as:
Program revenues.
Which of the following is a required part of a local governments managements discussion and analysis (MD*A) as part of its financial statements?
The MD&A should compare current year results to the prior year with emphasis on the current year.
(2426.01)
Marta City’s school district is a legally separate entity, but two of its seven board members are also city council members and the district is financially dependent upon the city. The school districts financial activity should be reported in the city’s financial statements by:
Discrete presentation.
2429.03
A county’s balances in the general fund included the following:
- Appropriations $745,000
- Encumbrances 37,250
- Expenditures 298,000
- Vouchers payable 55,875
What is the remaining amount available for use by he county?
$409,750
2449.04,2449.05, 2449.06, 2449.07, 2449.08, 2449.09
