Misc.

Question 1

Basic criterion to determine the reporting entity for a governmental unit?

Answer 1

Financial accountability

Question 2

Capital leases effect on the government-wide statement of net position?

Answer 2

Asset amount- Increase

Liability amount- Increase

Treated like a capital lease

Question 3

What fund would Proceeds from special assessment bonds to finance construction of sidewalks in a new subdivision?

Answer 3

Capital projects fund

Benefits all of the public, thats why its not enterprise fund

Question 4

For defined contribution pension plan, what is required in the notes?

Answer 4

The types of employeees covered and the employer’s and employees’ obligations to contribute to the fund.

Question 5

Under the modified accural basis of accounting, when should revenues be reconginzed?

Answer 5

They are “earned” when they are measureable and readily available.

Question 6

J/E when money is transfered from one fund to another in the fund transfered to

Answer 6

Cash xxx

  Interfund transfer  xxx

Question 7

When a county RECEIVES goods but they have NOT been paid for yet, what is the effect on encumbarances and expenditures?

Answer 7

Decreases encumbrances

Increases expenditures

Question 8

An enterprise fund would be used when:

Answer 8

User charges cover the costs of general public services

Net income information can be provided for an activity

Question 9

How are cash receipts and cash payments treated in a debt service fund provided by the general fund?

Answer 9

Cash receipts- Transfers

Cash payments- Expenditures

Question 10

Which fund would most likely have fund balance non-spendable inventory of supplies?

Answer 10

The general fund.

The general fund will normally have supplies on hand at the end of the year

Question 11

Construction in progress is displayed where for a capital projects fund?

Answer 11

In the government-wide finanical statements.

It would not be presented in the Capital projects fund.

Question 12

A federal grant set up to finance the constrcution of a drug rehab center sould be set up in what fund?

Answer 12

The Capital Projects Fund

Question 13

Internal service fund, J/E to record billings for services to other governmental untis

Answer 13

Cash xxx

  Operating revenues xxx

Question 14

When are grant revenues recongnized?

Answer 14

In the year in which the monies are used

Question 15

How should encumbarances outstanding be reported at year end?

Answer 15

As a component of committed or assinged fund balance

Question 16

Debt service fund

Answer 16

Remember that it is restricted and will pay BOTH the principal and the interest payments.

Question 17

County issues 1,000,000 of general obligation funds at 101 to financae capital project which results in 50,000 premium. Where is everything reported

Answer 17

Capital projects fund for proceeds of net premium

Debt services funds for the premium

Goernmental activities column of the government-wide statmement of net position as assets and liablities.

Question 18

J/E for capital lease in enterprise fund

Answer 18

Equipment xxx

    Capital lease payable xxx

Question 19

J/E for first payment of capital lease in internal service fund.

Answer 19

Capital lease payable (principal) xxx

Expenses control (interest) xxx

                                   Cash                 xxx

Question 20

For pension funds, the schedule of actuarially determined contributions shold have what amount of time?

Answer 20

The number of years to the extent avaiable (for a minimum 10 years)

If fund has only been in effect for 4 years, only report 4 years.

Question 21

In the capital projects fund for bond anticpation notes, if the City/Town is unable to consummate refinancing, what account should be credited?

Answer 21

Bond anticpation notes payable