Non-Profit And Govt Final

Front 1

Which of the following is discussed in GASB Concepts Statement No. 1 as a financial reporting objective for governmental financial statements?

Back 1

C. Assisting users in assessing the operating results, level of services provided, and the government’s ability to meet cash requirements

Front 2

Which of the following is Concept Statement No. 4's definition of assets?

Back 2

D. Resources with present service capacity that the government presently controls

Front 3

Under GASB Concepts Statement No. 4, the common denominator for defining elements of financial statements is which of the following?

Back 3

B. Resources

Front 4

The following information pertains to Comb City:

Year 3 real estate property taxes assessed and collected in year 3$14,000,000

Year 2 real estate property taxes assessed in year 1 and collected in year 3 1,000,000

Year 3 sales taxes collected by merchants in year 3 but not required
to be remitted to Comb until January of year 4
2,000,000

For the year ending December 31, year 3, Comb should recognize revenues of

Back 4

D. $17,000,000

Front 5

The following information pertains to Pine City's general fund for the current year:

Appropriations$6,500,000

Expenditures5,000,000

Other financing sources1,500,000

Other financing uses2,000,000

Revenues8,000,000

After Pine's general fund accounts were closed at the end of the year, the unassigned fund balance increased by

Back 5

B. $2,500,000

Front 6

On January 1, Fonk City approved the following general fund resources for the new fiscal period:

Property taxes$ 5,000,000

Licenses and permits400,000

Intergovernmental revenues150,000

Transfers in from other funds350,000

What amount should Fonk record as estimated revenues for the new fiscal year?

Back 6

B. $5,550,000

Front 7

Arlen City's fiduciary funds contained the following cash balances at December 31:

Under the Forfeiture Act-cash confiscated from illegal activities;
principal can be used only for law enforcement activities$300,000

Sales taxes collected by Arlen to be distributed
to other governmental units500,000

What amount of cash should Arlen report in its permanent funds at December 31?

Back 7

A. $0

Front 8

Which of the following is the primary objective for accounting principles for internal service funds?

Back 8

A. Centralized management of services and cost recovery for those operations

Front 9

The following fund types used by Ridge City had total assets at December 31 as follows:

Special revenue funds$100,000

Agency funds 200,000

Pension funds 400,000

Total fiduciary fund assets amount to

Back 9

C. $600,000.

Front 10

Which of the following can be reported in a fiduciary fund?

Back 10

D. Trusts held specifically for the benefit of third parties

Front 11

Elm City contributes to and administers a single-employer defined benefit pension plan on behalf of its covered employees. The plan is accounted for in a pension trust fund. Actuarially determined employer contribution requirements and contributions actually made for the past three years, along with the percentage of annual covered payroll, were as follows: ......

Lots of info ELM City

What account should be credited in the pension trust fund to record the year 3 employer contribution of $11,000?

Back 11

A. Revenues control

Front 12

Fish Road property owners in Sea County are responsible for special assessment debt that arose from a storm sewer project. If the property owners default, Sea has no obligation regarding debt service, although it does bill property owners for assessments and uses the moneys it collects to pay debt holders. What fund type should Sea use to account for these collection and servicing activities?

Back 12

A. Agency

Front 13

Harland County received a $2,000,000 capital grant to be equally distributed among its five municipalities. The grant is to finance the construction of capital assets. Harland had no administrative or direct financial involvement in the construction. In which fund should Harland record the receipt of cash?

Back 13

A. Agency fund.

Front 14

Which of the following statements are presented for investment trust funds?

Back 14

D. Statements of net position and changes in net position

Front 15

What is the major difference between an exchange transaction and a non-exchange transaction for governmental units?

Back 15

A. The relationship between the amount of value given and received.

Front 16

Kingwood Town paid $22,000 cash for a flatbed trailer to be used in the general operations of the town. The expected useful life of the trailer is 6 years with an estimated $7,000 salvage value. Which of the following amounts would be reported?

Back 16

C. $22,000 increase in investment in governmental activities column for fixed assets.

Front 17

Which of the following funds will Zebra Town rarely report within the same activity column as the general fund in the government-wide financial statements?

Back 17

B. Enterprise fund

Front 18

Which of the following indicates how liabilities with differing maturities should be presented in the statement of net position?

Back 18

D. Amounts due within one year and amounts due in more than one year

Front 19

Which of the following describes the modified approach for recognizing the costs of infrastructure in governmental accounting?

Back 19

B. An asset management system includes periodic condition assessments and preservation of assets at targeted condition levels, with annual maintenance costs rather than depreciation to expense these assets.

Front 20

Types of operating information required in the statistical section of the CAFR include which of the following?

Back 20

D. All of the above

Front 21

Programs funded with taxes, grant revenues, and other nonexchange resources are reported in the government-wide statements as which of the following?

Back 21

C. Governmental activities

Front 22

The following are Boa City's fixed assets:

Fixed assets used in enterprise fund activities$1,000,000

Infrastructure assets9,000,000

All other fixed assets1,800,000

What aggregate amount should Boa report in the governmental activities column of the government-wide financial statements?

Back 22

C. $10,800,000

Front 23

Palm City acquired, through forfeiture as a result of nonpayment of property taxes, a parcel of land that the city intends to use as a parking lot for general governmental purposes. The total amount of taxes, liens, and other costs incurred by Palm incidental to acquiring ownership and perfecting title was $20,000. The land's fair market value at the forfeiture date was $60,000. What amount should be reported in the governmental activities column of the government-wide financial statements for this land?

Back 23

B. $20,000

Front 24

Chase City uses an internal service fund for its central motor pool. The assets and liabilities account balances for this fund that are not eliminated normally should be reported in the government-wide statement of net position as...

Back 24

A. Governmental activities

Front 25

Nack City received a donation of a valuable painting. Nack planned to add the painting to its collection and display it in the protected exhibition area of city hall. Nack had a policy that if such donated art works were sold, the proceeds would be used to acquire other items for its collections. Which of the following would be correct regarding the donated painting?

Back 25

D. May be capitalized, but it is not required, and depreciation is not required.

Front 26

Which of the following are the constraints that create restricted net position in governmental accounting?

Back 26

C. Both A. and B.

Front 27

During the current year Knoxx County levied property taxes of $2,000,000, of which 1% is expected to be uncollectible. The following amounts were collected during the current year:

Prior year taxes collected within the 60 days
of the current year
$ 50,000

Prior year taxes collected between 60 and
90 days into current year
120,000

Current year taxes collected in the current year1,800,000

Current year taxes collected within the first 60 days
of the subsequent year
80,000

What amount of property tax revenue should Knoxx County report in its entity-wide statement of activities?

Back 27

C. $1,980,000

Front 28

Which of the following would be reported as program revenues on a local government's government-wide statement of activities?

Back 28

A. Charges for services

Front 29

On March 1, Wag City issued $1,000,000, ten-year, 6% general obligation bonds at par with no bond issue costs. The bonds pay interest September 1 and March 1. What amount of interest expense and bond interest payable should Wag report in its government-wide financial statements at the close of the fiscal year on December 31?

Back 29

A. Interest expense, $50,000; interest payable, $20,000

Front 30

GASB Statement No. 38 expanded the required disclosures for interfund balances and transfers because of which of the following?

Back 30

A. Users were concerned about how these transactions affected resources available in any given fund.

Front 31

Where does GASB Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments, require management's discussion and analysis (MD&A) to be presented?

Back 31

A. Before the financial statements

Front 32

Vale City has adopted GASB Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. Vale legally adopts a cash-basis budget. What basis should be used in Vale's budgetary comparison schedule?

Back 32

B. Cash

Front 33

GASB Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments, requires presentation of a budgetary comparison schedule in required supplementary information. Which of the following must this schedule include?

1. Actual inflows, outflows, and balances, stated on the basis in the government's budget, with a reconciliation between the budgetary and GAAP information
2. Original budget
3. A separate column to report the variances between the final budget and actual amounts

Back 33

B. I and II only

Front 34

Cy City's Municipal Solid Waste Landfill Enterprise Fund was established when a new landfill was opened January 3, year 1. The landfill is expected to close December 31, year 20. Cy's year 1 expenses would include a portion of which of the year 21 expected disbursements?

1. Cost of a final cover to be applied to the landfill.
2. Cost of equipment to be installed to monitor methane gas buildup.

Back 34

C. Both I and II.

Front 35

A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The actuarially-determined annual required contribution for year 1 was $13,500. The pension plan paid benefits of $8,200 and refunded employee contributions of $800 for year 1. What is the pension expenditure for the general fund for year 1?

Back 35

C. $10,000