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Week One: Government Accounting and Reporting...

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Week One: Government Accounting and Reporting Objective: Describe the major features of government reporting and the government reporting entity. 1. Which of the following choices regarding the fiduciary fund financial statements is true? a. 0 Fiduciary fund financial statements include the Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets. b. 0 Fiduciary fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting. c. 0 Fiduciary fund financial statements reflect equity as reserved and unreserved. d. 0 Agency funds are reported only on the Statement of Changes in Fiduciary Net Assets. Objective: Evaluate the Management Discussion & Analysis section for a governmental reporting unit. There are no test questions associated with this objective. Objective: Compare and contrast government accounting with for-profit financial accounting. There are no test questions associated with this objective. Week Two: Government, General, and Special Revenue Funds Objective: Analyze the components of the fund financial statements. 2. Under modified accrual accounting, revenues are recognized when measurable and a. 0 earned b. 0 available c. 0 collected d. 0 expenditures have been made Objective: Compare and contrast expenses and expenditures for governmental funds. There are no test questions associated with this objective. Objective: Prepare journal entries for general and special revenue funds. 3. The Expenditures control account in the General Fund is debited when a. 0 equipment previously ordered is received b. 0 the budget is recorded c. 0 the books are closed at the end of the year d. 0 supplies are ordered Objective: Prepare journal entries for nonexchange transactions on government-wide and fund statements. 4. When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant under GASB Statement 33? a. 0 Only as work is completed for a project b. 0 When a plan for use of the funds has been developed and approved c. 0 Only after work is completely finished for the project d. 0 When work has started for the project Week Three: Journal Entries Objective: Prepare journal entries for proprietary funds. 5. Impact fees imposed on commercial developers by an enterprise fund and not associated with specific projects or improvements are recorded as a. 0 transfers from the enterprise fund to a capital projects fund b. 0 operating revenues to the enterprise fund c. 0 capital contributions to the enterprise fund d. 0 unearned revenue to the enterprise fund Objective: Prepare journal entries for fiduciary funds. 6. The county of Churchville is trustee for a multigovernment investment pool and has established an investment trust fund. Included in the investment trust fund, for management purposes, are investments in the amount of $15 million from the county's General Fund, $2 million from the county's special revenue funds, and $112 million from other governments. Which of the following would be true? a. 0 The county would report the $112 million in an investment trust fund and the$17 million in a permanent fund. b. 0 The county would report the $112 million in an investment trust fund, the $15 million in its General Fund and the $2 million in special revenue funds. c. 0 The county would report the entire $129 million in an investment trust fund. d. 0 The county would report the entire $17 million in an investment trust fund. Objective: Prepare journal entries for capital project funds, debt service funds, and permanent funds. 7. How would the government account for the unused bond proceeds? a. 0 As a revenue in the debt service fund and as an expenditure in the capital projects fund b. 0 As an other financing source in the capital projects fund and as an other financing use in the debt service fund c. 0 As an other financing source in the government-wide Statement of Activities d. 0 As an other financing source in the debt service fund and as an other financing use in the capital projects fund Objective: Compare and contrast proprietary and fiduciary funds. There are no test questions associated with this objective. Week Four: Financial Statements and Supplementary Information Objective: Explain the process by which fund financial statements are converted to government-wide financial statements. 8. A government incurred expenses for its infrastructure as follows: $15 million for general repairs; $13 million to extend the life of existing infrastructure; and $12 million for additions and betterments. The government chooses to use the modified approach to record infrastructure. The infrastructure has a basis of $400 million and would be depreciated over a 40 year life, if depreciation were charged. The amount that would be shown as expense in the Statement of Activities would be a. 0 $40 million b. 0 $28 million c. 0 $27 million d. 0 $25 million Objective: Evaluate the significance of notes to the financial statements. There are no test questions associated with this objective. Objective: Evaluate the benefit of the required supplementary information. 9. The modified approach for infrastructure requires schedules and disclosures to be included in which part of the CAFR? a. 0 Notes to the Financial Statements b. 0 Required Supplementary Information c. 0 Other Supplementary Information d. 0 Proprietary Fund Statements Week Five: Governmental and Not-for-Profit Organizations Objective: Analyze reporting requirements for private sector not-for-profit organizations under Financial Accounting Standard Board guidance. 10. A donor made a cash contribution of $50,000 to a private college for the purpose of acquiring a building. The private college properly recorded the gift of cash as temporarily restricted revenue. When the building is acquired, the college should a. 0 record the building as permanently restricted b. 0 record the building as unrestricted c. 0 show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets d. 0 record the plant as either unrestricted or temporarily restricted, as long as a consistent policy is followed Objective: Compare and contrast accounting for government Special Purpose Entities (SPEs) and private not-for-profit organizations. 11. A public college had tuition and fees for the year ended June 30, 2009 in the amount of $45,000,000. Scholarships, for which no services were required, amounted to $2,500,000. Graduate assistantships, for which services were required, amounted to $2,300,000. The amount to be reported by the college for net tuition and fee revenue would be a. 0 $40,200,000 b. 0 $42,700,000 c. 0 $42,500,000 d. 0 $45,000,000 Week Six: Fiscal Policy and Financial Performance Objective: Analyze the impact on governmental revenue and expenditures of nondiscretionary fiscal policy. There are no test questions associated with this objective. Objective: Identify key performance measures for government and not-for-profit organizations. 12. In order to compute the ratio unreserved fund balance/revenues-general fund, one would look in the CAFR at the a. 0 governmental funds Balance Sheet and the Governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances b. 0 government-wide Statement of Net Assets and government-wide Statement of Activities c. 0 governmental funds Balance Sheet d. 0 governmental funds Statement of Revenues, Expenditures and Changes in Fund Balance Objective: Compare and contrast the use of budgets between governmental and for-profit organizations. 13. Which of the following choices is a permanent fund classified under governmental funds: a. 0 Accounts for most of the basic services provided by the governmental unit b. 0 Accounts for financial resources intended for major capital projects c. 0 Accounts for services provided by one department of a government to another d. 0 Accounts for resources that are legally restricted so only earnings, not principal, may be expended and for purposes to benefit the government and its citizenry

 

Paper#12848 | Written in 18-Jul-2015

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