Question;1. ACC410 Government and Not-for-Profit 2. Week 6 3. Review Test Submission: Quiz 4 Review Test Submission: Quiz 4 ? Question 1 The capital project fund of a governmental entity is accounted for using which of the following bases of accounting?? Question 2 Six years ago Hill City issued $10 million of 6% term bonds, due 30 years from the date of issue. Interest on the bonds is payable semi-annually on January 1 and July 1. Hill City has a September 30 fiscal year end. The amount of interest payable that would be included on the balance sheet for the debt service fund of Hill City at September 30 would be? Question 3 Previously Atomic City had issued bonds with a face value of $10 million to construct a new city hall. Because the money will not be needed for several months, the city invested the bond proceeds in U.S. Government securities. Assuming that the city maintains its books and records in a manner that facilitates the preparation of the fund financial statements, what is the appropriate entry when the City receives interest on the investments?? Question 4 In which fund type would a governmental entity?s debt service fund be found?? Question 5 Use of a Debt Service Fund is required? Question 6 Calhoun County makes annual transfers from the general fund to the debt service fund to pay principal and interest on long-term debt. When the County makes the transfer the entry in the debt service fund should be? Question 7 Voters in Phillips City approved the construction of a new $10 million city hall building and approved a $10 million bond issue with a stated rate of interest of 6% to fund the construction. When the bonds were issued, they sold for 101. What are appropriate entries related to the premium? In the capital project fund? Question 8 Harbor City issued 6% tax-exempt bonds and used the proceeds to acquire federal government securities yielding 7%. After paying the interest on the tax-exempt bonds, the City cleared 1%. This is an example of? Question 9 Sister City was notified by the State that they had been awarded a $6 million grant to aid in the construction of a senior citizens center. At the time of the notification what is the appropriate entry in the capital project fund (assuming that the City maintains its books and records in a manner to facilitate the preparation of the fund financial statements)?? Question 10 With regard to the resources dedicated to the acquisition of fixed assets which will be used in general government activities, which of the following is true?? Question 11 In which fund type would a governmental entity?s capital project fund be found?? Question 12 Voters in Lincoln School District approved the construction of a new high school and approved a $10 million bond issue with a stated rate of interest of 6% to fund the construction. Bids were received and the low bid was $10 million. When the bonds were issued, they sold for face value less bond underwriting fees of $.5 million. The School Board voted to fund the balance of the construction by a transfer from the general fund. The entry in the capital project fund to record the additional funding for the construction would be? Question 13 Adams County has outstanding $10 million in bonds issued by the County to construct a sewer system in a specific area of the county. The taxpayers in that area voted for the construction and the bonds and agreed to tax themselves to pay the principal and interest on the bonds. The County contracted for the construction and issued the bonds but the City assumed no legal or moral obligation for the bonds. If the special tax payments are not sufficient to make the required principal and interest payments, the County will not make up the difference. The $10 million of bonds should appear in which fund financial statements or schedule?? Question 14 Sue City has outstanding $5 million in general term bonds used to finance the construction of the new City Library. Sue City has a June 30 fiscal year-end. Interest at 6% is payable each January 1 and July 1. The principal of the bonds is due 10 years in the future. The City budgeted the July 1, 1999 interest payment in the budget for the fiscal year ended June 30, 1999. On June 30, cash was transferred from the General Fund to the Debt Service Fund to make the required payment. The maximum amount of interest payable that may be included on the balance sheet of the debt service fund of Sue City at June 30 would be? Question 15 A governmental entity has elected to issue new debt and use the proceeds to redeem existing debt because there is an economic gain in doing so. There is, however, an ?accounting loss? associated with these events. An accounting loss is defined as? Question 16 The City of Shiloh sold a used police car. The police car, which had a historical cost of $17,000 and a fair value of $12,000, was sold for $5,000. Assuming that the City maintains its books and records in a manner to facilitate the preparation of the fund financial statements, what is the appropriate entry in the General Fund to record this sale?? Question 17 Which of the following is NOT an infrastructure asset?? Question 18 If a government capitalizes works of art and similar assets, which of the following statements is true relative to depreciation on the works of art and similar assets?? Question 19 A broker-dealer or other financial institution transfers cash to a government in exchange for securities and the government agrees to repay the cash plus interest and return the securities. From the government's point of view, this transaction is a? Question 20 To elect not to capitalize works of art and similar assets, a government must see that the assets meet all of the following criteria except:? Question 21 If a government elects the modified approach with regard to capitalization of infrastructure? Question 22 A governmental entity may record long-term assets in which of the following funds or account groups?? Question 23 With regard to capitalization of infrastructure, which of the following is true?? Question 24 The objectives of financial reporting for fixed assets should be to provide information? Question 25 Investments, other than bank balances, must be classified into one of three categories. Which of the following is NOT one of those categories?? Question 26 Which of the following is NOT an example of a derivative?? Question 27 Donated assets are reported at? Question 28 General fixed assets are excluded from governmental funds because? Question 29 GASB standards require that depreciation be reported on all capital assets except? Question 30 Which of the following costs will be included in the cost of land on the government-wide financial statements?
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