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30 Cards in this Set
- Front
- Back
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The amount of pension expenditures that a government should recognize in its general fund financial statements during the current year is a)The amount paid. b)The amount paid plus the amount that will be paid with available expendable financial resources. c)The amount paid so long as it does not exceed the contractually agreed amount. d)The contractually agreed amount. |
B |
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The amount of pension expense that a government should recognize in its government-wide financial statements during the current year is a) The amount paid. b) The amount paid plus the amount that will be paid with avai lable expendable financial resources. c) The amount paid so long as it does not exceed the contractua lly agreed amount. d) The contractually agreed amount. |
D |
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This 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 estimate s the city will be held liable by the courts and a judgment of $300,000 will result. Because of the na ture of the case it will likely be four years before the city makes any payment relat ed to the accident. The present value of the likely future payment is $251,000. In the general fund, at the end of the current fiscal year, Port City should recognize a liability of a) $300,000. b) $251,000. c) $0. d) $75,000. |
C |
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This year, Port City was sued for injuries sustained whe n a citizen slipped and broke her hip on the icy City Hall steps. The city attorney estimate s the city will be held liable by the courts and a judgment of $300,000 will result. Because of the na ture of the case it will likely be four years before the city makes any payment relat ed to the accident. The present value of the likely future payment is $251,000. In the government-wide financial statements, at the end of the current fiscal year, Por t City should recognize a liability of a) $300,000. b) $251,000. c) $0. d) $75,000. |
A |
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Several years ago, Grant County was sued by a former cou nty employee for wrongful discharge. Although it was to be contested by the county, a t the time of the lawsuit the attorneys believed that the county was likely to lose the suit and the estimated amount of the ultimate judgment would be $100,000. This year, the case was fi nally 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 facilitat e the preparation of its fund financial statements, the entry in the current year should be a) Debit Expenditures $150,000; Credit Cash $150,000. b) Debit Expenses $150,000; Credit Cash $150,000. c) Debit Expenditures $50,000 and Claims payable $100,000; Credit Cash $150,000. d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000. |
A |
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Several years ago, Grant County was sued by a former cou nty employee for wrongful discharge. Although it was to be contested by the county, a t the time of the lawsuit the attorneys believed 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 s ettled with a judgment against the county of $150,000, which was paid. Assuming that the co unty maintains its books and records in a manner to facilitate the preparation of its gove rnment-wide financial statements, the entry in the current year should be a) Debit Expenditures $150,000; Credit Cash $150,000. b) Debit Expenses $150,000; Credit Cash $150,000. c) Debit Expenditures $50,000 and Claims payable $100,000; Credit Cash $150 ,000. d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150, 000. |
D |
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The City of Upper Falls accounts for its inventory using the purchases method. During the year the city bought $500,000 of supplies, for which it owed $100,000 at year-end. The city will pay for the supplies from available expendable financia l resources. The entry that should be recorded in the city’s general fund is a) Debit Expenditures $500,000; Credit Cash $400,000 and Accounts payable $100,000. b) Debit Expenditures $400,000; Credit Cash $400,000. c) Debit Supplies inventory $500,000; Credit Cash $400,000 and Accounts pay able $100,000. d) Debit Supplies inventory $400,000; Credit Cash $400,000. |
A |
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Bay City uses the purchases method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purcha sed $600,000 of supplies for use by activities accounted for in the general fund. The city used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statem ents, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be a) Expenditures $600,000; Supplies inventory $200,000. b) Expenditures $600,000; Supplies inventory $0. c) Expenditures $400,000; Supplies inventory $200,000. d) Expenditures $400,000; Supplies inventory $0. |
A |
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Shoshone County uses the consumption method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $450,000 of supplies for use by activities accounted for in the general fund. The city used $300,000 of those supplies during the year. At fiscal year-end, the appropri ate account balances on the general fund financial statements would be a) Expenditures $450,000; Supplies inventory $150,000. b) Expenditures $450,000; Supplies inventory $0. c) Expenditures $300,000; Supplies inventory $150,000. d) Expenditures $300,000; Supplies inventory $0. |
C |
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Shoshone County uses the consumption method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $450,000 of supplies for use by activities accounted for in the general fund. The city used $300,000 of those supplies during the year. At fiscal year-end the appropria te account balances on the government-wide financial statements would be a) Expenses $450,000; Supplies inventory $150,000. b) Expenses $450,000; Supplies inventory $0. c) Expenses $300,000; Supplies inventory $150,000. d) Expenses $300,000; Supplies inventory $0. |
C |
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Sugar City uses the purchases method to record all prepaymen ts. The city has a 6/30 fiscal year-end. On 12/31/14, the city purchased a three-year insuran ce policy covering all city owned vehicles acquired by the general fund to be used in general government activities. Cost of the policy was $360,000. After the 6/30/15 closing entries, the appropriate balance sheet accounts and balances in the city’s general fund associ ated with this transaction are a) Prepaid insurance $300,000; Expenditures $60,000. b) Prepaid insurance $300,000; Expenditures $360,000 c) Prepaid insurance $0; Expenditures $360,000. d) Prepaid insurance $0; Expenditures $60,000. |
C |
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Campbell County uses the consumption method to record all in ventories and prepayments. The County has a 9/30 fiscal year-end. On April 1, 2015, th e county purchased a two-year insurance policy at a total cost of $400,000, paying for the pol icy out of the general fund. In the fund financial statements, the amount of insurance expenditures for the fiscal year ended 9/30/15 would be a) $400,000. b) $300,000. c) $200,000. d) $100,000. |
D |
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On July 1, Gilbert County bought computer equipment for use i n the administrative offices of the county. The equipment has an estimated useful life of three years and salvage of $10,000. The county has a 6/30 fiscal year-end. Assuming tha t the county maintains its books and records in a manner that facilitates the preparat ion of fund financial statements, the $85,000 cost of this equipment would require which of the f ollowing entries? a) Debit Expenditures $85,000; Credit Cash $85,000. b) Debit Equipment $85,000; Credit Cash $85,000. c) Debit Expenses $85,000; Credit Cash $85,000. d) No entry in the city’s governmental funds. |
A |
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On July 1, Gilbert County bought computer equipment for use i n the administrative offices of the county. The equipment has an estimated useful life of three years and salvage of $10,000. The county has a 6/30 fiscal year-end. Assuming tha t the county maintains its books and records in a manner that facilitates the preparat ion of government-wide financial statements, the $85,000 cost of this equipment would requi re which of the following entries? a) Debit Expenditures $85,000; Credit Cash $85,000. b) Debit Equipment $85,000; Credit Cash $85,000. c) Debit Expenses $85,000; Credit Cash $85,000. d) No entry is required. |
B |
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The City of Roswell has a 6/30 fiscal year-end. The ci ty uses the consumption method for recognizing inventories and prepayments. On July 1, 2014, the city leased computer equipment for use in the city’s general activities. The lease is a three-year lease that qualifies as an operating lease. The city prepaid the entire th ree-year rental fee of $45,000. At June 30, 2015, the appropriate account balances in the general fund as sociated with this transaction would be a) Prepaid lease $0; Expenditures $45,000; Fund balance-nonspendable $0. b) Prepaid lease $45,000; Expenditures $0; Fund balance-nonspendable $45,000. c) Prepaid lease $30,000; Expenditures $45,000; Fund balance-nonspendable $30,000. d) Prepaid lease $30,000; Expenditures $15,000; Fund balance-nonspendable $0. |
D |
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Pocahontas School District, an independent public school distric t, financed the acquisition of a new school bus by signing a note for $105,000 plus interest on the unpaid balance at 6 percent. Annual principal payments of $35,000, plus interest, are du e each July 1. Assuming that the district maintains its books and records in a manner that facilitates the preparation of the fund financial statements, the appropriate entry in the general fund at the date of acquisition is a) Debit Expenditures $105,000; Credit Notes payable $105,000. b) Debit Capital assets $105,000; Credit Notes payable $105,000. c) Debit Expenditures $105,000; Credit Other financing sources $105,000. d) Debit Capital assets $105,000; Credit Other financing sources $105, 000. |
C |
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Pocahontas School District, an independent public school distric t, financed the acquisition of a new school bus by signing a note for $105,000 plus interest on the unpaid balance at 6 percent. Annual principal payments of $35,000, plus interest, are du e each July 1. Assuming that the district maintains its books and records in a manner that facilitates the preparation of the government-wide financial statements, the appropriate entr y at the date of acquisition is a) Debit Expenditures $105,000; Credit Notes payable $105,000. b) Debit Capital assets $105,000; Credit Notes payable $105,000. c) Debit Expenditures $105,000; Credit Other financing sources $105,000. d) Debit Capital assets $105,000; Credit Other financing sources $105, 000. |
B |
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Star City leased a bulldozer for use in activities acco unted for in the general fund. The city paid $40,000 and agreed to pay $40,000 per year for 3 years. The bul ldozer has a useful life of six years. The lease qualified as a capital lease. Assuming that the city maintains is books and records in a manner that facilitates the preparation of the fund financial statements, the appropriate entry in the general fund at the date of acqui sition would be a) Debit Expenditures $160,000; Credit Cash $40,000 and Other financing sour ces $120,000. b) Debit Expenditures $40,000 and Prepaid lease $120,000; Credit Cash $40,000 and Other financing sources $120,000. c) Debit Equipment $160,000; Credit Cash $40,000 and Other financing sources $120,000. d) Debit Expenditures $160,000; Credit Cash $40,000 and Lease payable $120,000. |
A |
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Star City leased a bulldozer for use in activities acco unted for in the general fund. The city paid $40,000 and agreed to pay $40,000 per year for 3 years. The bul ldozer has a useful life of six years. The lease qualified as a capital lease. Assuming that the city maintains is books and records in a manner that facilitates the preparation of the government-wide financial statements, the appropriate entry at the date of acqui sition would be a) Debit Expenditures $160,000; Credit Cash $40,000 and Other financing sour ces $120,000. b) Debit Expenditures $53,333 and Prepaid lease $106,667; Credit Cash $40,000 and Other financing sources $120,000. c) Debit Equipment $160,000; Credit Cash $40,000 and Lease payable $120, 000. d) Debit Expenditures $160,000; Credit Cash $40,000 and Lease payable $120,000. |
C |
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The City of Hiawatha issued $10 million of term bonds as o f April 1, 2014. The bonds bear interest at 6 percent, due and payable each October 1 and April 1. Assuming the city maintains its books and records in a manner that facilit ates the preparation of its fund financial statements the appropriate entity to record i nterest on the debt at June 30, 2015 (the city’s fiscal year-end) is a) Debit Expenditures $300,000; Credit Interest payable $300,000. b) Debit Expenditures $300,000; Credit Other financing uses $300,000. c) Debit Expenditures $300,000; Credit Due to bondholders $300,000. d) No entry required. |
D |
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Banker County has outstanding $4 million of term bonds that bear interest at 6 percent payable semiannually each January 30 and July 30. The count y’s fiscal year-end is 12/31. On December 28, 2015, the County transferred $240,000 to a debt service fund. At December 31, the maximum amount the debt service fund may recognize as interest expenditure is a) $120,000 b) $240,000. c) $100,000. d) $0. |
C |
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Several years ago, Durham City issued $1 million in zero coupon bonds due and payable in 2023. The bonds were sold at an amount to yield investors 6 percent over the life of the bonds. During the current year, how much in interest expendit ures should Durham City recognize related to these bonds? a) Difference between the present value of the bonds at the be ginning of the period and the present value of the bonds at the end of the period. b) Face amounts of bonds times 6 percent. c) Book value of bonds times 6 percent. d) None. |
D |
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The City of Holbrook transferred $100,000 from the general fund t o a debt service fund for payment of interest. The appropriate entry in the general fund to record this transfer would be a) Debit Expenditures $100,000; Credit Cash $100,000. b) Debit Nonreciprocal transfer-out $100,000; Credit Cash $100,000. c) Debit Fund balance$100,000; Credit Cash $100,000. d) Debit Reciprocal transfer-out $100,000; Credit Cash $100,000. |
B |
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The City of Holbrook transferred $100,000 from the general fund t o a debt service fund for payment of interest. The appropriate entry in the debt ser vice fund to record this transfer would be a) Debit Cash $100,000; Credit Revenue $100,000. b) Debit Cash $100,000; Credit Reciprocal transfer-in $100,000. c) Debit Cash $100,000; Credit Fund balance $100,000. d) Debit Cash $100,000; Credit Nonreciprocal transfer-in $100,000. |
D |
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Harris County transferred $300,000 from the general fund to the M otor Pool Internal Service Fund to pay for the use of automobiles during the first six months of FY 2015. The appropriate entry in the general fund to record this trans fer of cash would be a) Debit Expenditures $300,000; Credit Cash $300,000. b) Debit Nonreciprocal transfer-out $300,000; Credit Cash $300,000. c) Debit Fund balance—transfer out $300,000; Credit Cash $300,000. d) Debit Nonreciprocal transfer-in $300,000; Credit Cash $300,000. |
A |
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Which of the following items is NOT an example of an item that would be reported as Other Financing Sources/Uses in the general fund? a) $10 million received from the issuance of bonds. b) $7,000 received from the sale of a used bulldozer. c) $200,000 capital lease obligation for a new bulldozer. d) $100,000 paid to a Motor Pool Internal Service Fund for automobi le usage during the period. |
D |
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Other financing sources/uses would appear on which of t he following statements? a) Balance sheet. b) Statement of revenues, expenditures, and changes in fund bal ances. c) Cash flows statement. d) None of the above. |
B |
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tate employees earn $10 million in vacation leave. $7 mi llion is paid in the current year and the remaining amount is deferred to future years. Which of the following the accounts will be credited in the general fund entry and the government-wide entry? General Fund Government-wide a)Cash Cash & accrued vacation pay b)Cash & accrued vacation pay Cash c)Cash Cash d)Cash No entry e)No entry Cash |
A |
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The construction of a bike path in Bay City was accou nted for in a capital projects fund. Financing for the project came from the following sources: Transfer from Bay City’s general fund $10,000 Proceeds from general obligation bond issue $100,000 Grant from state government $50,000 Which of the following amounts should appear in this year’s gove rnmental funds statement of revenues, expenditures, and changes in fund balances for other financing sources? a) $160,000 b) $110,000 c) $100,000 d) $10,000 e) $60,000 |
B |
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Which of the following is not an accepted modification of the accrual basis concerning the recognition of expenditures in governmental funds? a) Vacations and sick leave should never be accrued. b) Capital assets should be reported as expenditures when the assets are acquired. c) Inventory and the costs of using supplies may be accounted for using the purchases method. d) Claims and judgments should be reported as expenditures onl y insofar as they will be paid out of current financial resources. |
A |
