Question

Multiple Choice Questions
Identify the best answer for each of the following:
1. Which of the following statements about the sale of general capital assets is false?
a. The proceeds from the sale of general capital assets are generally reported as other financing sources in the government-wide financial statements.
b. Gains from the sale of general capital assets are reported as general revenues in the government-wide financial statements; losses are reported as functional expenses.
c. Gains and losses from the sale of general capital assets are not reported in the govern-mental funds.
d. The proceeds from the sale of general capital assets increases fund balance in the governmental funds.

2. Adjustments to convert governmental funds to governmental activities would include all of the following except
a. Adding depreciation expense for general capital assets.
b. Adding expenses with no expenditure counterparts.
c. Adding general capital assets.
d. Eliminating inventory balances.

3. The required reconciliations of fund financial statements and government-wide financial statements include all of the following except the reconciliation of
a. Total net position of Enterprise Funds with total net position of business-type activities.
b. Total fund balances of governmental funds with total net position of governmental activities.
c. Change in total governmental funds fund balances with the change in net position for governmental activities.
d. Change in net position of total proprietary funds with the change in net position for business-type activities.

4. Gouge County reported $365,000 of committed fund balance in its General Fund. The commitment is for future capital improvements. How will this amount most likely be reflected in net position in the government-wide financial statements?
a. Restricted net position—$365,000
b. Included as part of unrestricted net position
c. Included as part of net investment in capital assets
d. Designated, unrestricted net position—$365,000

5. If Parnell Parish has two major governmental funds, two major Enterprise Funds, three fiduciary funds, and two discrete component units, what would be the minimum number of columns reported in its government-wide Statement of Net Position?
a. Three
b. Four
c. Five
d. Seven
Questions 6, 7, and 8 are based on the following scenario:
The General Fund of the village of Oxendine transferred $150,000 to a Special Revenue Fund; $35,000 to a Capital Projects Fund; and $25,000 to Enterprise Fund A. In the same reporting period, Enterprise Fund B transferred $125,000 to the General Fund and $45,000 to Enterprise Fund C.

6. The General Fund would report on its Statement of Revenues, Expenditures, and Changes in Fund Balance
a. Net transfers of ($85,000).
b. Transfers to governmental funds of $185,000, special item reduction of $25,000, and transfers from other funds $125,000.
c. Transfers in of $125,000 and transfers out of $210,000.
d. Net transfers of ($40,000).

7. What would be the amount of transfers reported for governmental activities on the Statement of Activities?
a. Transfers in of $100,000
b. Transfers in of $125,000 and transfers out of $185,000
c. Transfers out of $85,000
d. Transfers in of $85,000

8. What would be the amount of transfers reported for business-type activities on the Statement of Activities?
a. Transfers out of $145,000
b. Transfers in of $70,000 and transfers out of $125,000
c. Transfers in of $145,000
d. Transfers out of $100,000

9. Assume that Dial County issued $10 million of 5% bonds at 102 to finance a new public safety center. The debt will be serviced with general government resources. At its issuance, how will the premium be reported in the fund financial statements and the government-wide financial statements, respectively?
a. Capital Projects Fund—$200,000 expenditure; governmental activities—$200,000 expense
b. Capital Projects Fund—$200,000 other financing source; governmental activities—$200,000 premium on bonds (a liability)
c. Capital Projects Fund—$200,000 revenue; governmental activities—$200,000 bonds payable
d. Capital Projects Fund—$200,000 other financing source; governmental activities—$200,000 expense

10. Which of the following statements concerning deriving government-wide financial statements is true?
a. Adjustments made to convert governmental funds to governmental activities are posted to the general ledger.
b. The worksheet approach to deriving government-wide financial statements is required by GAAP.
c. Net position does not reflect spendable equity.
d. Adjustments related to interest payable on general government bonds are required.



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  • CreatedOctober 25, 2014
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