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ACC 548 Final Exam guide

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Question;ACC 548 Final Exam Answers;HOW TO USE THIS GUIDE;? Read Me First!;The following study guide may;NOT have the same exact questions on your test! However, this study guide WILL;help you ace the ACC/548 Final Exam. The guide covers the same topics and will;help you gain a deeper understanding of the concepts.;1. Under;GASB rules for the financial reporting entity;a. component units are included if the primary;government is financially accountable for their operations;B. counties are component units of the state government;C. blended and discretely presented component units are to be reported in;government-wide financial statements but not in fund financial statements;D. component units must be reported in columns (discrete presentation);separate from the funds of a primary government;2. According to GASB Statement No. 44, all of;the following is a recommendation category for the CAFR?s statistical section;EXCEPT;A. financial trends information;B. debt capacity information;C. comparative;information;D. operating information;3. Which of the following choices regarding the;government-wide Statement of Net Assets is true?;A. The;government-wide Statement of Net Assets reflects capital assets, net of accumulated;depreciation, for both governmental and business-type activities.;B. The government-wide Statement of Net Assets must be prepared in a;classified format, that is, both assets and liabilities must be separated;between current and long-term categories.;C. The government-wide Statement of Net Assets includes all resources;entrusted to the government, including governmental, proprietary, and;fiduciary.;D. A reporting entity?primary government plus component units?total column;is required.;4. Which of;the following choices regarding the government-wide Statement of Activities is;true?;A. The government-wide;Statement of Activities may reflect expenses either by function?general;government, public safety, and so forth?or by object or natural classification?salaries;supplies, and so forth.;B. The government-wide Statement of Activities is prepared using the;modified accrual basis of accounting for governmental activities and using the;accrual basis of accounting for business-type activities.;C. The government-wide;Statement of Activities reflects all taxes as general revenues.;Which of the following choices;regarding the government-wide Statement of Activities is true?;A. The;Statement of Activities includes depreciation expense.;B. Transfers between governmental and business type activities are;eliminated and do not appear on the government-wide Statement of Activities.;C. In the government-wide Statement of Activities, special items are those;items that are both unusual, infrequent, and are not under the control of;management.;D. Taxes levied for specific functions may be reported as program revenue.;Which of the;following choices regarding the proprietary fund financial statements is true?;A. The Statement of Net Assets (Balance Sheet) reflects;equity as contributed equity and retained earnings.;B. Normally, a reconciliation is required between the proprietary fund;financial statements and the business-type activities column in the;government-wide financial statements.;C. Statements;include the Statement of Net Assets (Balance Sheet), Statement of Revenues;Expenses and Changes in Fund Net Assets: and Statement of Cash Flows.;D. The Statement of Cash Flows may be prepared using either the direct or;indirect methods.;Which of the following choices regarding the fiduciary fund;financial statements is true?;A. Fiduciary;fund financial statements include the Statement of Fiduciary Net Assets and;Statement of Changes in Fiduciary Net Assets.;B. Fiduciary fund financial statements are prepared using the current;financial resources measurement focus and modified accrual basis of accounting.;C. Fiduciary fund financial statements reflect equity as reserved and;unreserved.;D. Agency funds are reported only on the Statement of Changes in Fiduciary;Net Assets.;All of the;following is likely to be recorded in a special revenue fund EXCEPT;A. phone fees restricted to supporting the emergency;911 access system;B. hotel taxes restricted to promoting tourism;C. sales;taxes restricted to courthouse additions;D. state motor fuel tax restricted to road maintenance;Short-term loans which are backed by the;taxing power of the governmental unit and used to meet working capital;requirements are called;A. tax anticipation notes;B. inter-fund loans;C. other financing sources;D. appropriation loan;A local government was awarded a federal;grant in the amount of $600,000 to provide for a summer employment program for;young people. The grant was a reimbursement grant and was awarded on April 30;2009. The local government expended the resources as follows: June, 2009;$220,000, July 2009, $200,000, August, 2009, $180,000. The federal government;provided the funds the following months. The local government would recognize;revenues for the fiscal year ended June 30, 2009 in which amount?;A. $ -;0 -;B. $220,000;C. $420,000;D. $600,000;A donor pledged $100,000 to the fund raising drive of a local government to;assist its police officers in obtaining the latest technology. The pledge was;made on July 16, 2008 but was conditioned on the government raising an;additional $100,000 from other donors. By the fiscal year-end of June 30, 2009;the local government had raised only $5,000 from other donors. What entry would;be made for the initial pledge by the local government during the year ended;June 30, 2009?;A. Debit;a receivable and credit a revenue;B. Debit a receivable and credit deferred revenues, a liability;C. Debit a receivable and credit Fund Balance;D. No entry;The General Fund of the City of Richmond approved a tax levy;for the calendar year 2009 in the amount of $1,600,000. Of that amount, $30,000;is expected to be uncollectible. During 2009, $1,400,000 was collected. During;2010, $100,000 was collected during the first 30 days, $40,000 was collected;during the next 30 days and $30,000 was collected during the next 30 days.;During the postaudit, you discovered that the city showed $1,570,000 in;revenues. What adjusting entry would you need to make, assuming you decided to;allow the maximum amount of revenues for 2009, using modified accrual;accounting?;A. Debit Revenues and Credit Deferred Revenues in the amount of;$30,000;B. Debit Revenues and Credit Deferred Revenues in the amount of $70,000;C. Debit Revenues and Credit Deferred Revenues in the amount of $200,000;D. No entry is necessary;The City of Greenville had a balance in the;Reserve for Encumbrances account at the end of 2008 in the amount of $30,000.;During 2009, all purchase orders related to the $30,000 were filled and the;invoice amount was $30,500. Which of the following would be true regarding the;Statement of Revenues, Expenditures and Changes in fund balances for 2009?;(assume encumbrances do not lapse);A. The;amount shown for expenditures would include only the $500.;B. The amount shown for expenditures would include only the $30,000.;C. The;amount shown for expenditures would include the $30,500.;D. The amount shown for expenditures would not include items related to;orders placed in 2008.;Under modified accrual accounting, revenues;are recognized when measurable and;A. earned;B. available;C. collected;D. expenditures have been made;The City of Lonesome Pines levied property;taxes for the fiscal year ended June 30, 2009 in the amount of $8,000,000. It;is estimated that 2% will not be collected. During the year ended June 30;2009, $7,200,000 in property taxes were collected. It is estimated that;$400,000 will be collected during the next 60 days, $240,000 will be collected;after 60 days and $160,000 will not be collected. What is the maximum amount;Lonesome Pines can recognize as property tax revenue for the fiscal year ended;June 30, 2009 in its Governmental Funds Statement of Revenues, Expenditures and;Changes in Fund Balances, assuming there were no unpaid property taxes at the;end of the previous year?;A. $7,200,000;B. $7,600,000;C. $7,840,000;D. $8,000,000;What is the;effect on the General Funds? unreserved fund balance when capital assets are;purchased during a year from General Fund revenues?;A. Unreserved fund balance is increased;B. Unreserved;fund balance is decreased;C. There is no effect, since one asset (cash) is replaced by another;(capital);D. None of the above, capital assets must be purchased through a capital;projects fund;The initial;transfer of cash from the General Fund to establish a motor pool internal;service fund would require the General Fund to credit cash and debit;A. Investment;in Internal Service Fund;B. Other;Financing Uses-Transfers Out Control;C. Expenditures ? Vehicle maintenance;D. Accounts Receivable-Internal Service Fund;When supplies ordered by a governmental unit;are received at an actual price which is more than the estimated price on the;purchase order, the Encumbrance Control account is;A. credited for;the original estimated price for the supplies received;B. credited for the actual price on the purchase order;C. debited for the estimated price on the purchase order;D. debited for the actual price for the supplies received;Which of the;following accounts of a governmental unit is debited when supplies previously;ordered are received?;A. Encumbrances;Control;B. Reserve for Supplies;C. Reserve for;Encumbrances;D. Appropriations;Which of the;following accounts of a governmental unit is credited to close it at the end of;the fiscal year?;A. Appropriations;Control;B. Encumbrances;Control;C. Reserve for Encumbrances;D. Other Financing Sources-Transfers In;The Expenditures control account in the General Fund is;debited when;A. equipment previously ordered is received;B. the budget is recorded;C. the books are closed at the end of the year;D. supplies are ordered;Prepare;journal entries for nonexchange transactions on government-wide and fund;statements. Each of the following is one of the four classes into which;nonexchange transactions apply in accordance with GASB Statement No. 33 EXCEPT;A. voluntarynonexchange transactions;B. imposed nonexchange revenues;C. derived tax revenues;D. mandatory;exchange transactions;Property;taxes, special assessments, and fines and forfeits are types of nonexchange;transactions, and assets should be recognized when an enforceable legal claim;exists or when the resources are received, whichever is first. These are;examples of;A. government-mandated;nonexchange transactions;B. imposed;nonexchange transactions;C. deferred tax revenues;D. voluntary nonexchange transactions;Under the modified accrual basis of accounting;GASB standards for property tax revenue recognition provide that revenue should;not be recognized for property taxes collected;A. after;fiscal year end;B. more than 30 days after fiscal year end;C. more;than 60 days after fiscal year end;D. more than 90 days after fiscal year end;When;payrolls and other liabilities are incurred and must be paid before substantial;amounts of cash will be collected, what type of short-term note is desirable;and secured by a government's power to tax?;A. Tax;Relief Note Payable;B. Tax Budget Note Payable;C. Tax;Anticipation Note Payable;D. Tax Encumbrances Note Payable;What is a;Special Revenue Fund?;A. A;fund created to account for all resources and revenues to be used for the;construction or acquisition of capital assets;B. A fund used to account for all revenue transactions of a governmental;unit that are not accounted for in another fund;C. A fund used to account for revenues from general taxes or other revenue;sources that by law are designated to finance general activities of the;government;D. A fund;used to account for revenues from specific taxes or other revenue sources that;by law are designated to finance particular activities of the government other;than capital projects;Expenditures are generally recorded and fund;liabilities are recognized;A. when goods and services are received, but only if;resources are available in the fund;B. when;goods and services are received, regardless of whether or not resources are;available in the fund;C. when purchase orders are issued, regardless of whether resources are;available in the fund;D. when invoices are paid;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. Only as work is;completed for a project;B. When a plan for use of the funds has been developed and approved;C. Only after work is completely finished for the project;D. When work has started for the project;Funds that;are used to account for activities similar to those often engaged in by;profit-seeking businesses are;A. proprietary;funds;B. special revenue funds;C. capital project funds;D. agency funds;Proprietary;funds utilize what basis of accounting?;A. Modified;accrual;B. Accrual;C. Cash;D. Budgetary;Activities;that produce goods or services to be provided to other departments or other;governmental units would be reported in which fund?;A. Enterprise;fund;B. Internal;service fund;C. Agency fund;D. Advance fund;Governmental;units use which fund type to account for services provided to the general;public on a user-charge basis?;A. General;fund;B. Enterprise;fund;C. Permanent fund;D. Internal service fund;The estimated costs of closure of solid-waste;landfills are measured using;A. actual;future costs;B. actual closure costs;C. historical costs;D. current;costs;In the Statement of Net Assets for proprietary;funds, GASB requires a classified format where current assets, noncurrent;assets, current liabilities, and noncurrent liabilities are presented;A. separately;B. combined;C. intermingled;D. not at all;Impact fees imposed on commercial developers by an;enterprise fund and not associated with specific projects or improvements are;recorded as;A. transfers;from the enterprise fund to a capital projects fund;B. operating revenues to the enterprise fund;C. capital;contributions to the enterprise fund;D. unearned revenue to the enterprise fund;Ford County;levies for its General Fund $1,000,000 in property taxes. In addition, the;county is responsible for collecting $2,000,000 in property taxes for the;consolidated school district and $500,000 in property taxes for a town within;the county. 2% of all taxes levied are expected to be uncollectible. When;recording the levies in an agency fund, what amount would Ford County record as;Taxes Receivable for Other Governments ? Current and Due to Other;Governments?;A. $2,500,000;B. $2,450,000;C. $3,500,000;D. $3,430,000;GASB;Statement 31, Accounting and Financial Reporting for Certain Investments and;for External Investment Pools, applies to all of the following investment types;EXCEPT;A. external investment pools;B. open-end mutual funds;C. debt securities;D. investments;of pension funds;The City of;Sycamore has investments in bonds. These bonds have an amortized cost of;$998,000 and a market value of $1,001,000. The market value is quoted and;available in the financial press. The original cost of the bonds was $996,000.;The par value at maturity will be $1,000,000. The amount at which the;investments would be reported is;A. $;996,000;B. $ 998,000;C. $ 1,000,000;D. $;1,001,000;The tax;agency fund of Fulton County collected $6,000,000 for a school district;$3,000,000 for the county general fund, and $4,000,000 for a municipality.;County general fund employees handle the collections and a 3% collection fee is;charged all units except the county. The total amount of revenue recognized by;the county general fund would be;A. $2,910,000;B. $3,000,000;C. $3,090,000;D. $3,300,000;The City of;Springfield has three pension plans: a locally administered police plan for;which it is trustee, a statewide cost sharing plan, and a statewide agency;plan. The city would include in its CAFR financial statements for;A. all three plans;B. the locally administered plan plus the statewide agency plan;C. both statewide plans;D. the;locally administered plan only;A statewide;pension plan exists for all local governments in a certain state. The;provisions of the plan indicate that each qualifying retiree receive 2%;multiplied by the number of years active employment multiplied by the average;salary for the past four years of service. The government calculates the;actuarial liability on a statewide basis, not by individual government. The;plan would be known as a;A. multiple-employer;defined benefit, agency plan;B. multiple-employer, defined contribution plan;C. multiple-employer;defined benefit, cost-sharing plan;D. single employer plan;The County;of Churchville is trustee for a multi-government 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. The;County would report the $112 million in an investment trust fund and $17;million in a permanent fund.;B. 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. The County would report the entire $129 million in an investment trust;fund.;D. The County would report $17 million in an investment trust fund.;Which two;governmental funds are commonly used to acquire capital assets?;A. General Fund;Capital Projects Fund;B. General Fund & Debt Service Fund;C. Permanent Fund & Capital Projects Fund;D. Capital Projects Fund & Debt Service Fund;When a;purchase order is issued under a Capital Projects Fund, how should the;transaction be recorded?;A. Debit;Encumbrances Control and credit Vouchers Payable;B. Debit;Encumbrances Control and credit Reserve for Encumbrances;C. Debit Expenditures and credit Vouchers Payable;D. Debit Expenditures and credit Reserve for Encumbrances;Which;disqualifies a lease as a capital lease?;A. The lease transfers ownership of the property to the;lessee by the end of the lease term.;B. The;lease contains an option to purchase the leased property at its fair market;value.;C. The lease term is equal to or greater than 75% of the estimated;economic life of the leased property.;D. The present value of the minimum lease payments equals or exceeds 90%;of the fair value of the leased property.;If taxes or;special assessments are levied by the General Fund and then transferred to the;debt service fund, they are;A. recorded;as revenues of the debt service fund;B. included;in the revenues budget of the general fund and budgeted by that fund as;transfers out to the debt service fund;C. included as transfers out in the General Fund but are not budgeted as;revenue in that fund;D. recorded as an expense and voucher payable by;In which;fund type is interest on long-term debt typically not accrued, yet is;recognized as an expenditure in the year in which interest is legally;due?;A. Debt service;fund;B. Internal service fund;C. Enterprise fund;D. Pension fund;What type of;serial bond schedules an increase each year in annual principal repayment;approximately equivalent to the decrease in interest payments?;A. Regular;B. Deferred;C. Annuity;D. Irregular;How would the government account for the unused bond;proceeds?;A. As a revenue in the debt service fund and as an expenditure in the;capital projects fund;B. As an other financing source in the capital projects fund and as an;other financing use in the debt service fund;C. As an other financing source in the government-wide Statement of;Activities;D. As an;other financing source in the debt service fund and as an other financing use;in the capital projects fund;In its;Statement of Net Assets, a government reported: Assets of $90 million?including;$30 million in capital assets (net)?and liabilities of $50 million?including;long-term debt of $15 million?all related to capital asset acquisition.;The government also reported $5 million of net assets that were restricted for;payment of debt service. The government's unrestricted net assets would be;reported as;A. $10;million;B. $20;million;C. $25 million;D. $30 million;A;governmental funds Statement of Revenues, Expenditures and Changes in Fund;Balances reported expenditures of $30 million, including capital outlay;expenditures of $2 million. Capital assets for that government cost $70;million, including land of $10 million. Depreciable assets are amortized over;20 years, on average. The reconciliation from governmental changes in fund;balances to governmental activities changes in net assets would reflect;A. a decrease of;$1 million;B. an increase of $1 million;C. a decrease of $3 million;D. an increase of $2 million;The City of;Charlotte levied property taxes in 2009 in the amount of $10 million. It is;estimated that 2% will be uncollectible. During 2009, $9,000,000 was collected;and it is anticipated that $400,000 will be collected during the next 60 days.;When moving from the changes in fund balances in the Statement of Revenues;Expenditures and Changes in Fund Balances to the changes in net assets in the;Statement of Activities, what will be the adjustment?;A. An;increase of $800,000;B. An;increase of $400,000;C. An increase of $200,000;D. Zero;A government's Statement of Revenues, Expenditures and;Changes in Fund Balances reflected proceeds of bonds in the amount of;$1,000,000. That statement also reflected expenditures for debt service in the;amount of $3,000,000, including $2,600,000 for principal payments. Assuming no;other changes, the effect when moving from the change in fund balances in the;governmental funds Statement of Revenues, Expenditures and Changes in Fund;Balances to the change in net assets for governmental activities in the;Statement of Activities would be a;A. $1,000,000 increase;B. $1,000,000 decrease;C. $1,600,000;increase;D. $1,600,000 decrease;A government had the;following transfers reported in its governmental funds Statement of Revenues;Expenditures and Changes in Fund Balances: (1) a transfer from the General Fund;to a debt service fund in the amount of $1,000,000, (2) a transfer from the;General Fund to an enterprise fund in the amount of $1,200,000, and (3) a;transfer from the General Fund to an internal service fund in the amount of;$400,000. The amount that would be shown as a transfer out in the governmental;activities column in the Statement of Activities would be;A. $2,600,000;B. $1,400,000;C. $1,200,000;D. $ 800,000;A government reported an other financing source in the;amount of $800,000, related to the sale of land in its governmental funds;Statement of Revenues, Expenditures and Changes in Fund Balances. The land had;a cost of $350,000. The adjustment in the reconciliation when moving from the;governmental Funds Statement of Revenues, Expenditures and Changes in Fund;Balances to the change in net assets for governmental activities in the;Statement of Activities would be;A. an increase of $450,000;B. a decrease of $450,000;C. an increase of $350,000;D. a;decrease of $350,000;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. $40 million;B. $28;million;C. $27 million;D. $25 million;Under GASB;rules for the financial reporting entity;A. component units;are included if the primary government is financially accountable for their;operations;B. counties are component units of the state government;C. blended and discretely presented component units are to be reported in;government-wide financial statements but not in fund financial statements;D. component units must be reported in columns (discrete presentation);separate from the funds of a primary government;According to;GASB Statement No. 44, all of the following is a recommended category for the;CAFR's statistical section EXCEPT;A. financial trends information;B. debt capacity information;C. comparative;information;D. operating information;Which of the following choices regarding the government-wide;Statement of Net Assets is true?;A. The government-wide Statement of;Net Assets reflects capital assets, net of accumulated depreciation, for both;governmental and business-type activities.;B. The government-wide Statement of Net Assets must be prepared in a;classified format, that is, both assets and liabilities must be separated;between current and long-term categories.;C. The government-wide Statement of Net Assets includes all resources;entrusted to the government, including governmental, proprietary and fiduciary.;D. A reporting entity?primary government plus component units?total column;is required.;Which of the following choices regarding the government-wide;Statement of Activities is true?;A. The government-wide Statement of Activities may reflect expenses either;by function (general government, public safety, etc.) or by object or natural;classification (salaries, supplies, etc.).;B. The government-wide Statement of Activities is;prepared using the modified accrual basis of accounting for governmental;activities and using the accrual basis of accounting for business-type;activities.;C. The;government-wide Statement of Activities reflects all taxes as general revenues.;D. Indirect program expenses may not be allocated to the other functional;areas.;Which of the;following statements regarding the government-wide Statement of Activities is;true?;A. The;Statement of Activities includes depreciation expense.;B. Transfers between governmental and business type activities are;eliminated and do not appear on the government-wide Statement of Activities.;C. In the government-wide Statement of Activities, "special;items" are those items that are both unusual, infrequent, and are not;under the control of management.;D. Taxes levied for specific functions may be reported as program revenue.;Which of the following choices regarding the proprietary;fund financial statements is true?;A. The Statement of Net Assets (Balance Sheet) reflects equity as;contributed equity and retained earnings.;B. Normally, a reconciliation is required between the proprietary fund;financial statements and the business-type activities column in the;government-wide financial statements.;C. Statements;include the Statement of Net Assets (Balance Sheet), Statement of Revenues;Expenses and Changes in Fund Net Assets and Statement of Cash Flows.;D. The Statement of Cash Flows may be prepared using either the;direct or indirect methods.;Which of the following regarding the fiduciary fund;financial statements is true?;A. Fiduciary;fund financial statements include the Statement of Fiduciary Net Assets and;Statement of Changes in Fiduciary Net Assets.;B. Fiduciary fund financial statements are prepared using the current;financial resources measurement focus and modified accrual basis of accounting.;C. Fiduciary fund financial statements reflect equity as reserved and;unreserved.;D. Agency funds are reported only on the Statement of Changes in Fiduciary;Net Assets.;The FASB has the authority to set accounting standards for;all of the following organizations EXCEPT;A. public;colleges;B. private colleges;C. for profit proprietary schools;D. educational foundations established to support a private college or;university;The three classes of net assets required to be presented by;a private college or university are;A. Permanently;Restricted, Temporarily Restricted, and Unrestricted;B. Reserved, Unreserved, and Undesignated;C. Invested in Capital Assets net of Related Debt, Restricted, and;Unrestricted;D. Educational, General, and Auxiliary Enterprises;According to NACUBO guidelines, what is the correct;treatment for recognizing summer school revenues and expenses when a college's;fiscal year ends on June 30?;A. Recognize the entire amount of revenues and expenses in the year in;which the term is predominantly conducted.;B. Recognize the entire amount of revenues and expenses in the year in;which the term began.;C. Recognize expenses in the year in which they were billed and the;expenses in the year in which they were incurred.;D. Apportion;the revenues and expenses to the two fiscal years, following accrual accounting;practices similar to those employed by commercial enterprises.;All the following choices are considered a split-interest;agreement according to the Not-for-Profit Guide EXCEPT;A. charitable remainder trusts;B. permanent;income-sharing agreements;C. charitable gift annuities;D. pooled (life) income funds;A private university received $18,000,000 in tuition and;fees during an academic year. Graduate assistantships, for which services were;required, were awarded in the amount of $1,200,000. Scholarships, for which no;services were required, were awarded in the amount of $1,400,000. The net;tuition and fees that would be reported in the Statement of Activities would;be;A. $18,000,000;B. $16,800,000;C. $16,600,000;D. $15,400,000;In 2008 a faculty member at a private college received a;grant from the National Science Foundation to conduct basic research on tree;frogs in the amount of $350,000. Expenses associated with the grant totaled;$225,000 in 2009. In the Statement of Activities for 2009, the college should;show;A. revenues of $350,000 and expenses of $225,000 in Temporarily Restricted;Net Assets;B. revenues of $225,000 and expenses of $225,000 in Temporarily Restricted;Net Assets;C. revenues of $225,000 and expenses of $225,000 in Unrestricted Net;Assets;D. expenses;of $ 225,000 in Unrestricted Net Assets and a decrease in Temporarily;Restricted Net Assets of $ 225,000;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 a temporarily restricted revenue. When the;building is acquired, the college should;A. record the building as permanently restricted;B. record the building as unrestricted;C. 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. record;the plant as either unrestricted or temporarily restricted, as long as a;consistent policy is followed;All the;following choices would be considered a special-purpose government for;financial reporting purposes EXCEPT;A. a public school system;B. an art museum;C. a public hospital;D. a county;board of supervisors;Special purpose local governments engaged only in;fiduciary-type activities are required to prepare all of the following financial;reports EXCEPT;A. Statement of Fiduciary Net Assets;B. Statement;of Cash Flows;C. Statement of Changes in Fiduciary Net Assets;D. MD&A;Assume a government is a special-purpose entity engaged in;fiduciary activities only. Which of the following financial statements would be;required?;A. Statement;of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets;B. Statement of Net Assets and Statement of Activities;C. Statement of Net Assets, Statement of Activities, Statement of Fiduciary;Net Assets, Statement of Changes in Fiduciary Net Assets;D. Statement of Fiduciary Net Assets, Statement of Changes in Fiduciary;Net Assets, and Statement of Cash Flows;Assume a government is determined to be a special-purpose;government engaged in business-type activities only. Which of the following;financial statements would be required?;A. Statement of Net Assets and Statement of Activities;B. Statement;of Net Assets, Statement of Revenues, Expenses and Changes in Net Assets;Statement of Cash Flows;C. Statement of Net Assets, Statement of Activities, Statement of Cash;Flows;D. Balance Sheet, Statement of Revenues, Expenditures and Changes in end;Balances;Assume a;government is a special-purpose government engaged in only one governmental;activity. Which financial statements would be required?;A. Government-wide statements only;B. Governmental fund statements only;C. Statements;combining the governmental funds and government-wide statements;D. Either government-wide or governmental funds statements, issued;separately;A public college had;tuition and fees of $20,000,000. Scholarships, for which no services were;required, amounted to $2,

 

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