Questions and Answers of Accounting For Governmental And Nonprofit Entities

For the spring semester of 20X4, Lane University assessed its students $3,400,000 (net of refunds) of tuition and fees for educational and general purposes. However, only $3,000,000 was expected to
During the years ended June 30, 20X6, and 20X7, Sampson University conducted a diabetes research project financed by a $2,000,000 gift from an alumnus. This entire amount was pledged by the donor on
On January 2, 20X6, Tim Brooks established a $500,000 trust at Wyndham National Bank, the income from which is to be paid to Mansfield University for general operating pur- poses. The Wyndham
The carrying value of the Annuities Payable account of a collegea. should be adjusted to reflect changes in actuarial assumptions such as life expectancies or yield estimates.b. should be
Assume that a wealthy alumnus donated $1 million to Chavis University to provide loans to qualifying students. Though not required by the donor, the university’s Board of Trustees voted to
Assume that a wealthy alumnus donated $1 million to Chavis University to provide loans to qualifying students. Though not required by the donor, the university’s Board of Trustees voted to
Assume that a wealthy alumnus donated $1 million to Chavis University to provide loans to qualifying students. Though not required by the donor, the university’s Board of Trustees voted to
Kashickey College, an institution considered to be governmental in nature, had the following events occur during the year:Tuition scholarships of $45,000 were granted during the year and $7,500 of
Kashickey College, an institution considered to be governmental in nature, had the following events occur during the year:Tuition scholarships of $45,000 were granted during the year and $7,500 of
Kashickey College, an institution considered to be governmental in nature, had the following events occur during the year:Tuition scholarships of $45,000 were granted during the year and $7,500 of
The trial balance of Boegner University, a government university, on September 1, 20X7, was as follows:Boegner University’s dormitory and food service facilities are operated as auxiliary
The following transactions of Cummings State College occurred during the 20X5-20X6 fiscal year:1. Cash was received as follows for the purposes noted: Educational and general: Endowments
Ransom University, a government university, had no endowments prior to September 1, 20X7. The following transactions took place during the fiscal year ended August 31, 20X8:1. At the beginning of the
The following transactions occurred during the 20X6 fiscal year of Pate County College. 1. A donation of $150,000 was received in cash for the purpose of making loans to students. 2. Cash in the
The trial balance of Farley College, a government university, as of September 1, 20XS, includes the following: Land..... Buildings.... Accumulated Depreciation-Buildings Equipment... Accumulated
Analysis of the accounts of Jonimatt State College for the fiscal year ended June 30, 20X7, provided the following information: Revenues from: Tuition and fees... State appropriations .... Federal
Why should hospitals report only the net amount of patient service revenue in their Statement of Revenues, Expenses, and Changes in Net Assets?
A government hospital's assets include the following:a. $\$ 2,000,000$ set aside by the hospital board as an endowment to support research for curing the common coldb. $\$ 25,000,000$ donated by
Following are various types of revenues, gains, and other amounts that may be received or accrued by a government hospital. For each type of revenue or gain, indicate whether it should typically be
Which of the following must be prepared for Agency Funds as part of a government’s Basic Financial Statements?a. Statement of changes in net assets.b. Statement of revenues, expenditures, and
The long-term debt issued in a situation like that described in question 2 should be reported by the government ina. an Agency Fund.b. a Capital Projects Fund.c. a Debt Service Fund.d. the
Which of the following items should be accounted for in an Agency Fund when a special assessment project is financed by issuing special assessment debt for which the government is not obligated in
Which of the following accounts typically would be used by an Agency Fund?a. Revenue.b. Notes receivable.c. Bonds payable.d. Cash.
When a Tax Agency Fund is used, the governmental funds in which the taxes should ultimately be accounted for should report tax revenuesa. when levied.b. when received by year-end or not more than
Which of the following statements is not required to be presented for an Investment Trust Fund?a. Statement of net assets.b. Statement of changes in net assets.c. Statement of cash flows.d. All
Employer governments must measure their annual pension contributiona. by using a standardized approach.b. in accordance with certain guidelines, but not in a standardized way.c. by using the unit
Which of the following statements about a Pension Trust Fund Statement of Plan Net Assets is not true?a. Investments are reported at fair value.b. Capital assets are reported.c. The actuarial
Which of the following statements about a Private-Purpose Trust Fund is false?a. The principal in a Private-Purpose Trust Fund must be nonexpendable in nature.b. The principal in a Private-Purpose
The accounting and financial reporting concepts are virtually the same for which of the following fund types?a. Private-Purpose Trust Funds and Permanent Funds.b. Permanent Funds and Pension Trust
Which of the following fiduciary fund types, if any, does not have a measurement focus?a. Pension Trust Fund.b. Private-Purpose Trust Fund.c. Investment Trust Fund.d. Agency Fund.e. None of the
Equity in Trust Funds is presented asa. Restricted Net Assets.b. Net Assets Held in Trust.c. Fund Balance.d. Unrestricted Net Assets.e. None of the above.
All of the following would be an example of a trust arrangement properly accounted for in a Private-Purpose Trust Fund excepta. anonexpendable trust arrangement for the benefit of providing
A trust fund’s statement of changes in net assets reports contributionsa. as are venue.b. as an addition.c. as they are collected.d. as an operating revenue.e. as a nonoperating revenue.
Which of the following types of pension plans would be least likely to be reported_as a Pension Trust Fund of a participating governmental entity?a. Single-employer plan.b. Agent multiple-employer
Which of the following would not be reported in the basic financial statements?a. Statement of plan net assets.b. Schedule of employer contributions.c. Schedule of funding progress.d. Statement
Trust Funds are most commonly reported in the government-wide financial statements asa. governmental activities.b. business-type activities.c. fiduciary activities.d. None of the above.
How would the capital assets of a Private-Purpose Trust Fund most likely be reported?a. As a capital asset of the fund and as a capital asset of governmental activities in the government-wide
Assume that a governmental entity provides other postemployment benefits (OPEB) to its retirees. The entity commissions an actuarial valuation of the OPEB plan and contributes to a trust in
GAAP require that certain actuarial information for pensions be reported as required supplementary information. Which of the following schedules is not an example of such actuarial
The preclosing trial balance for the Pension Trust Fund of Almen County at December 31, 20X8, is presented here. Prepare the Statement of Plan Net Assets at December 31, 20X8, and the Statement of
What minimum classifications must be used to report net assets in the government-wide Statement of Net Assets? In the proprietary funds Statement of Net Assets?
Identify the best answer for each of the following:1. Which of the following is not considered to be part of the basic financial statements?a. Management’s Discussion and
Governmental funds financial statements typically include the following excepta. a Balance Sheet.b. a Statement of Revenues, Expenditures, and Changes in Fund Balances.c. a Statement of Cash
Which of the following statements concerning reporting detail in the government-wide financial statements is false?a. The minimum level of detail for governmental activities is generally by
Which of the following types of revenues would not be considered a program revenue?a. State grant received for drug enforcement activities.b. Occupancy tax levied by reporting government and
Which of the following are typically included in functional expenses for governmental activities?a. Depreciation.b. Interest.c. Departmental supplies.d. All of the above are typical functional
Which of the following statements is true concerning major fund reporting?a. Major fund reporting is required for governmental funds and enterprise funds.b. The quantitative criteria for
The Balance Sheet for governmental funds would potentially include all of the following items excepta. liens receivable.b. deferred revenue.c. bonds payable due in 5 years.d. assigned fund
The Statement of Revenues, Expenditures, and Changes in Fund Balance does not reporta. interest on long-term debt.b. charges for services.c. transfers.d. depreciation.
The fund(s) for which budgetary comparisons would potentially be included in the basic financial statements area. General Fund.b. all Special Revenue Funds.c. major Special Revenue Funds.d. Items
Which of the following is an accurate description of major fund reporting concepts?a. Fiduciary funds must be reported by fund type.b. Proprietary funds are subject to major fund
Both governmental funds and governmental activities include which of the following on their respective operating statements?a. Revenues.b. Expenses.c. Depreciation expense.d. Fund
The government-wide Statement of Net Assets would not includea. accounts payable.b. capital assets, net of accumulated depreciation.c. fund balance.d. unrestricted net assets.e. bonds payable.
The government-wide Statement of Activities may report all of the following excepta. indirect expenses.b. unallocated depreciation.c. transfers.d. charges for services.e. deferred revenue.
Which of the following revenues would typically not be classified as a general revenue on the Statement of Activities?a. Property taxes.b. Sales taxes.c. Unrestricted grant.d. Parking
The governing board of the city of Chestnut Springs has decided to dedicate 25% of the fees generated by the city's recycling program to drug enforcement activities. This revenue would be reported on
GAAP require fiduciary activities to be reporteda. in the fund financial statements by fund type.b. in the fund financial statements by major fund and in the government-wide financial statements as
Which of the following topics would commonly be included in the MD&A?a. Goals and objectives for the government’s various functions for the next fiscal year.b. A brief analysis of the local
GAAP require primary government total columns to be reported on which of the following basic financial statements?a. Government-Wide Statement of Net Assets if both governmental and business-type
Carter County, like all other counties in the state, shares in the proceeds of a state-levied sales tax. The state requires all recipient counties to use the proceeds for capital improvements to
Carter County, like all other counties in the state, shares in the proceeds of a state-levied sales tax. The state requires all recipient counties to use the proceeds for capital improvements to
Clemens County had the following revenue sources in 20XS:Required Prepare a schedule computing the amount of general revenues and of program revenues that Clemens County should report in its
The following information was drawn from the accounts and records of Mosser Township:Prepare a schedule computing the amounts to be reported in each of the three minimum program revenues
Dorrian County’s fund structure is as follows:Requireda. What column headings would the county need to present in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund
Prepare the net assets section for governmental activities in the government-wide Statement of Net Assets for the city of Josiah at June 30, 20X6, given the following information as of that date.
Presented in the following table is selected information from the 20XS5 financial statements of the various individual funds of Alderman City. Fund General Grants Special Revenue School Special
Prepare a Statement of Activities for Tazewell County for calendar year 20X9, given the following: General property tax revenues..... Proceeds from sale of general government land* Unrestricted grant
Prepare a Statement of Activities for the Walland County School District for the year ended December 31, 20X5, given the following information. Assume that the classifications provided for expenses
Selected financial information of the City of Ashland, Oregon, is presented in the following table and narrative.The information is for the year ended June 30, 20X6. Account Cash and cash
Why does the conversion worksheet for governmental activities use only one net assets account instead of the three net assets accounts that must be reported in the financial statements?
Which of the following fund types would not be included as part of governmental activities?a. Special Revenue.b. Private-Purpose Trust.c. Internal Service:d. Permanent.
All of the following statements are true excepta. Both governmental funds and proprietary funds are reported in fund financial statements using the economic resources measurement focus. ,b. Both
Assume that the City of Great Brittain’s General Fund had cash collections of $11,108,900 associated with property taxes as of June 30, 20X8. The levy for the fiscal year ending June 30, 20X8. net
Assume that the City of Great Brittain’s General Fund had cash collections of $11,108,900 associated with property taxes as of June 30, 20X8. The levy for the fiscal year ending June 30, 20X8. net
All of the following statements are true concerning the conversion of governmental funds to governmental activities excepta. Depreciation expenditure reported in governmental funds simply becomes
Which of the following definitions best describes the general nature of the governmental activities column?a. Governmental activities are simply governmental funds added together.b. Governmental
Business-type activities would be derived according to which of the following scenarios?a. All Enterprise and Internal Service Funds are added together because they use the same measurement focus
Which of the following statements is true regarding reporting net assets in the governmentwide financial statements?a. Net assets are reported for both governmental activities and business-type
When preparing the balance sheet conversion worksheet, which of the following items must be eliminated?a. Deferred charges for debt issuance costs.b. Accrued interest payable.c. Inventories and
Assume that Nathan County sold $3,179,500 of bonds during the fiscal year at a discount of $25,000. In addition, the county incurred $22,500 of bond issue costs that were withheld from the proceeds
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
Adjustments to convert governmental funds to governmental activities would include all of the following excepta. adding depreciation expense for general capital assets.b. adding expenses with no
The required reconciliations of fund financial statements and government-wide financial statements include all of the following except the reconciliation ofa. total net assets of Enterprise Funds
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 assets in the
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
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,
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,
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,
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
Presented here is a partial list of accounts for the total governmental funds of the City of Bukowy. What worksheet adjustments would be required to convert this information to information that the
Presented here is the preclosing trial balance information for the total of Locklear County’s four Enterprise Funds for the year ended September 30, 20X7.1. The Contribution from Locklear County
The Finance Director of the City of Wrong Way has asked for your assistance in reviewing the Statement of Net Assets that he has prepared for the year ended June 30, 20X9. The statement is shown on
Presented here is the total column of the governmental funds balance sheet of Ravenscroft County, lowa, for the year ended December 31, 20X9.1. Both the deferred capital grant and the deferred tax
(Balance Sheet Conversion Worksheet—Governmental Activities)2. The balance of the long-term claims and judgments obligation at December 31, 20X5, was $450,000. All claims and judgments of the
Using the data from P14-5, prepare the operating statement conversion worksheet needed to derive government-wide, governmental activities data for Tierney County for 20X5.
(Balance Sheet Conversion Worksheet—Governmental Activities) Soucy Township Total Governmental Funds Preclosing Trial Balance December 31, 20X7
Using the data from P14-7, prepare the operating statement conversion worksheet needed to derive government-wide, governmental activities data for Soucy Township for 20X7.Data from P14-7(Balance
The governmental funds balance sheet conversion worksheet for December 31, 20X3, for the Town of Red Springs is provided here.Requireda. Complete the Town of Red Springs Balance Sheet Conversion
The City of Corona, California, Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances reports an increase in Fund Balances of $31,152,287.Required Based on the
Presented on the following page are the governmental fund financial statements of the City of Carrollton, Texas (adapted from a recent CAFR). All amounts are reported in thousands of dollars.1.

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