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DeVry acct567 midterm exam

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Question;1. (TCOs A and B) Fiduciary funds are to use which of the;following measurement and basis of accounting? (Points: 5);Economic;resource measurement focus and accrual basis of accounting.;Current;financial resources measurement focus and accrual basis of accounting.;Economic;resources measurement focus and modified accrual basis of accounting.;None of the;above, the fiduciary funds have no revenues.;2. (TCOs A and B) Funds other than the General Fund are;required to be considered to be a major fund when (Points: 5);(A) total;assets, liabilities, revenues, or expenditures/expenses of that fund constitute;10 percent of either the governmental or enterprise category.;(B) total;assets, liabilities, revenues, or expenditures/expenses of that fund are at;least 5 percent of the total of the governmental and enterprise category.;The conditions;of either A or B exist.;The conditions;of both A and B exist.;3. (TCOs A and B) Which of the following is most correct;with regard to Management?s Discussion and Analysis? (Points: 5);Both state and;local governments and federal agencies are required to provide a MD&A.;Federal agency;financial reports are required to provide a MD&A.;State and;local government agencies are required to provide a MD&A.;Both state and;local government and federal agencies are encouraged, but not required to;provide a MD&A.;4. (TCOs B and C) With regards to budgetary reporting by;governmental entities, which of the following is not a true statement? (Points;5);While GASB;standards guide the format of the comparison, it does not require governments;to maintain budgetary accounts.;GASB standards;require governmental entities to present a comparison of budgeted and actual;results for the General Fund and special revenue funds with legally adopted;budgets.;Budgetary;accounts are required to appear in the general purpose financial statements.;The basis of;accounting used to report the actual column in the budgetary comparison;schedule is prepared according to legal requirements for budget preparation;even if it departs from GASB Statements.;5. (TCOs B and C) The proper journal entry to record an;encumbrance would include which of the following? (Points: 5);(A) A debit to;the Encumbrance Account.;(B) A debit to;the Reserve for Encumbrances Account.;(C) A credit;to the Reserve for Encumbrances Account.;A and C would;both be included in the journal entry.;6. (TCOs B and C)) Capital assets that are used by an;enterprise fund should be accounted for in the following fund? (Points: 5);Enterprise;fund but no depreciation on the capital assets should be recorded.;Enterprise;fund and depreciation on the capital assets should be recorded.;Business-type;activities journal but no depreciation on the capital assets should be;recorded.;Governmental;activities journal and depreciation on the capital assets should be recorded.;7. (TCO E) When a government acquires general fixed assets;under a capital lease agreement, how should the asset be recorded in the;government-wide financial statements? (Points: 5);As an expense;when payments are made.;At the;inception of the lease agreement at the lesser of the present value of the;minimum lease payments of the fair market value of the property.;As an;expenditure when payments are made.;None of the;above;8. (TCO E) Which of the following projects would usually be;accounted for in a capital projects fund? (Points: 5);(A) Payment of;interest on bonds that are issued to finance the construction of a new city;hall.;(B) The;construction of a parking garage that is operated as an enterprise fund.;(C) The;construction of a fire station addition.;Both A and B;would be accounted for in a capital projects fund.;9. (TCO E) Which of the following statements is a true;statement regarding the reporting of debt service funds? (Points: 5);Debt service;funds are reported in a separate column in the governmental fund financial;statements.;Debt service;funds are reported in the other governmental funds column in the governmental;fund financial statements.;Debt service;funds are reported in a separate column in the government-wide financial;statements.;Debt service;funds are reported in the governmental activities column in the government-wide;financial statements.;10. (TCO D) Under GASB Statement No. 33, when would a;special revenue fund be considered to have satisfied the eligibility;requirement of a reimbursement type federal grant? (Points: 5);Only as the;work is completed for a project.;When the work;has started for the project.;Only after the;work is completely finished for the project.;When a plan for the use of the funds has;been developed and approved by the appropriate personnel;1. (TCO E) You are in a staff meeting with the city;controller and one of your colleagues was quoted as follows: ?Capital projects;funds are established by a government to account for all plant or equipment;acquired by construction.? Do you agree with this statement? Why or why not?;(Points: 30);2. (TCOs A and B) How are the major funds of a state or;local government determined by a governmental entity? (Points: 30);1. (TCO E) You are in a staff meeting with the city;controller and one of your colleagues was quoted as follows: ?Capital projects;funds are established by a government to account for all plant or;3. (TCO D) The City of Norton received a gift of $3,500,000;from a group of local residents on April 1, 2012 and signed an agreement that;the funds would be invested on a permanent basis and the income would be used;to purchase artifacts for the city museum. The following transactions took;place during the fiscal year ended Dec 31, 2012.;a. The gift was recorded on the books on April 1.;b. On April 1, 2012, the Calvin Co. bonds were purchased in;the amount of $3,000,000, at par. The;bonds carry an annual interest rate of 5 percent, payable semiannually on;October 1 and April 1. The city also purchased a certificate with a face value;of $250,000 pays interest of 4 percent on semiannually on October 1 and April;1.;c. On October 1, the semiannual interest was received on the;bonds and certificate of deposit.;d. From October 1 through December 1, payments were made;totaling $85,000 to purchase artifacts for the city museum.;e. On December 31, an accrual was made for interest for the;bonds and the certificate of deposit.;f. After a review of;the bond market on December 31, 2012, the bonds had a market value of;$2,979,000, exclusive of accrued interest.;g. The books were closed on December 31.;Required;Enter the following template in the answer box and complete;the journal entries to record the transactions on the books for the Calvin Co.;Museum Endowment Fund.........................................................................................Debit............................Credit

 

Paper#39966 | Written in 18-Jul-2015

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