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Strayer ACCOUNTING ACC410 Midterm Exam




Question;Question 1 10 out of 10 pointsWhich of the following is NOT generally considered a main user of government and not-for-profit entity external financial statements?;Question 2 10 out of 10 pointsWhich of the following is NOT a probable use a donor would make of the external financial statements of a not-for-profit entity?Question 3 10 out of 10 pointsA primary characteristic that distinguishes governmental entities from business entities isQuestion 4 10 out of 10 pointsTo obtain a comprehensive understanding of a government?s fiscal health, a financial analyst should obtain an understanding of which of the following?;Question 5 10 out of 10 pointsWhat is the primary reason that governmental entities use fund accounting?Question 6 10 out of 10 pointsWhich of the following funds is a proprietary fund?;Question 7 10 out of 10 pointsBasis of accounting determines which of the following?;Question 8 10 out of 10 pointsA city receives a donation from a citizen who specifies that the principal must be invested and the earnings must be used to support operations of a city-owned recreational facility. The principal of this gift should be accounted for in which of the following funds?;Question 9 10 out of 10 pointsGovernment-wide financial statements should include;Question 10 10 out of 10 pointsUnder the new GASB reporting model for governmental entities, which of the following is required?;Question 11 10 out of 10 pointsIn addition to government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government?s basic set of financial statements. The basic fund financial statements that should be included for fiduciary funds are;Question 12 10 out of 10 pointsThe focus of the Statement of Activities of the city of West Hills is on which of the following?;Question 13 0 out of 10 pointsUnder the accrual basis of accounting, property tax revenues are recognized;Question 14 10 out of 10 pointsA City levies a 2% sales tax. Sales tax must be remitted by the merchants to the City by the 20th day of the month following the month in which the sale occurred. Cash received by the City related to sales tax is as follows:Amount received 1/20/00, applicable to December 1999 sales $ 50Amount received 2/20/00, applicable to January 2000 sales $ 15Amount received during 2000 related to February-November 2000 sales $200Amount received 1/20/01 for December 2000 sales $ 55Amount received 2/20/01 for January 2001 $ 20Assuming the City uses the same period to define ?available? as the maximum period allowable for property taxes, what amount should it recognize in the fund financial statement as sales tax revenue for the fiscal year ended 12/31/00.Question 15 0 out of 10 pointsUnder the modified accrual basis of accounting, fines, license fees, permits, and other miscellaneous revenue are generally recognized;Question 16 10 out of 10 pointsUnder GAAP, property taxes levied in one fiscal period to finance the activities of the following fiscal period are recognized as revenue in the fund financial statements;Question 17 10 out of 10 pointsThe City of Upper Falls accounts for its inventory using the purchases method. During the year the City bought $400,000 of supplies, for which it owed $100,000 at year-end. The City will pay for the supplies from available expendable financial resources. The appropriate entry isQuestion 18 0 out of 10 pointsSeveral years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by the County, at the time of the lawsuit the attorneys felt that that the County was likely to lose and the estimated amount of the ultimate judgment would be $100,000. This year, the case was finally settled with a judgment against the County of $150,000, which was paid. Assuming that the county maintains its books and records in a manner to facilitate the preparation of its fund financial statements, the entry in the current year should be;Question 19 0 out of 10 pointsSugar City uses the purchases method to record all prepayments. The City has a 6/30 fiscal year-end. On December 31, 2000, the city purchased a three-year insurance policy covering all city owned vehicles acquired by the General Fund to be used in general government activity. Cost of the policy was $360,000. After the 6/30/01 closing entries, the appropriate balance sheet accounts and balances associated with this transaction are;Question 20 0 out of 10 pointsThis year Port City was sued for injuries sustained when a citizen slipped and broke her hip on the icy City Hall steps. The City attorney estimates the City will be held liable by the courts and a judgment of $200,000 will result. Because of the nature of the case it will likely be four years before the City makes any payment related to the accident. The present value of the likely future payment is $167,000. In the General Fund, at the end of the current fiscal year, Port City should recognize a liability of


Paper#43032 | Written in 18-Jul-2015

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