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Accounting exam

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Question;Page 1;Question;1. 1.(TCOs A;and B) Fiduciary funds are to use which of the following measurement and;basis of accounting?;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.;Question;2. 2.(TCOs A;and B) Governmental fund statements are prepared using which of the;following?;Economic resources measurement;focus and modified accrual basis of accounting.;Economic resources measurement;focus and accrual basis of accounting.;Current financial resources;measurement focus and modified accrual basis of accounting.;Current financial resources;measurement focus and accrual basis of accounting.. 3.;(TCOs A and B) Proprietary;funds use which of the following measurement focus and basis of;accounting?;Economic resources measurement;focus and modified accrual basis of accounting.;Current financial resources;measurement focus and modified accrual basis of accounting.;Economic resources measurement;focus and accrual basis of accounting.;Current financial resources;measurement focus and accrual basis of accounting.;4.;(TCOs B and C) Which of the;following items would notbe considered a nonexchange transaction;for a state government?;(Points: 5);Property taxes;Sales of lottery tickets;Income taxes;Fines and forfeits;5.;(TCOs B and C) Which of the;following is a true statement regarding modified accrual accounting? (Points: 5);Expenditures for claims and;judgments, compensated absences, and special termination benefits should be;ecognized whether or not the liabilities are to be paid with available;funds.;Expenditures for services used;by the General Fund departments should be recognized when those services;are received, regardless of whether or not funds are available for payment.;Both of the above statements are;true.;Neither of the above statements;are true.;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) Under the following circumstances should a;governmental entity use a Special Revenue Fund? A Capital Projects Fund? A;Debt Service Fund? (Points;30). 3.(TCO D) The City of Melvin;received a gift of $2,500,000 from a local resident 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 books for the city library. 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 PRZ Co. bonds were purchased in the amount of;$2,500,000, at par. The bonds carry an annual interest rate of 5 percent;payable semiannually on October 1 and April;1.;c. On October 1, the semiannual interest was received.;d. From October 1 through December 1, payments were made totaling $35,000 to;purchase books for the city library.;e. On December 31, an accrual was made for interest.;f. After a review of the bond market on December 31, 2012, the bonds had a;market value of $2,511,000, exclusive of accrued interest.;g. The books were closed on December 31.Required;a. Record the transactions on the books for Library Book Permanent Fund.;b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance;for the Library Book Permanent Fund for the year ended December 31;2012.;c. Prepare the Balance Sheet for the Library Book Permanent Fund for the year;ended December 31, 2012.;(Points: 40)

 

Paper#40209 | Written in 18-Jul-2015

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