Question :
97.Which of the following not required to convert from the : 1255507
97.Which of the following is not required to convert from the modified accrual basis to the accrual basis in preparing the government-wide statements?
A)Record general capital assets
B)Change expenditures for debt service principal to reduction of liabilities
C)Make adjustments to revenues deferred under the 60 day rule
D)Accrue interest on enterprise fund bonds
98.The following balances exist at year end within the governmental activities of a government unit:
A)A debit of $120,000 to Transfers In
B)A debit of $30,000 to Transfers In
C)A debit of $120,000 to Transfers Out
D)None of the above
99.A donated collection is not required to be capitalized. If a government decides not to capitalize them, how will they be accounted for at the time of the donation?
A)Debit revenue, credit expense/expenditure
B)Debit expense/expenditure, credit revenue
C)Debit collections, credit revenue
D)Debit collections, credit cash
100. Which of the following situations would be unlikely to result in the recognition of an asset impairment?
A)A city warehouse is damaged by fire.
B)Recently purchased city-owned voting booths are rendered obsolete by a federal law requiring a new technology.
C)Ridership on city buses declines.
D)Construction on a municipal sports complex stops when the city’s major league baseball team moves to another city.
101. A government reported, in its government-wide Statement of Net Assets:
? assets of $81 million, including $40 million in capital assets (cost), with $12 million in accumulated depreciation, and
? liabilities of $50 million, including long-term debt of $15 million related to capital asset acquisition.
In addition, $4 million of cash was restricted for payment of debt service. The government’s unrestricted net assets would be reported as:
A)$17 million.
B)$14 million.
C)$ 6 million.
D)$ 4 million.
102. Which of the following adjustments would be made when moving from the governmental funds balance sheet to the governmental activities column in the government-wide Statement of Net Assets?
A)Add balances of internal service fund assets and liabilities.
B)Add beginning capital assets, net of depreciation.
C)Both of the above.
D)Neither of the above.
103. Which of the following is true regarding the government-wide financial statements?
A)Government-wide statements include the Statement of Net Assets, the Statement of Activities, and the Statement of Cash Flows.
B)Government-wide statements are prepared using the economic resources measurement focus and accrual basis of accounting.
C)Both of the above are true.
D)Neither of the above is true.
104. On April 1, 2014, a local government issued bonds in the amount of $1,500,000. The bonds were issued at par and carried an interest rate of 5%, payable October 1 and April 1. When moving from the change in fund balances in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the change in net Assets in the governmental funds column of the Statement of Activities, both for the fiscal year ended June 30, 2014, the effect for the interest accrual only would be:
A)An increase of $18,750
B)A decrease of $18,750
C)A decrease of $37,500
D)An increase of $37,500
105. Where in the basic financial statements, in most cases, would one find internal service activities reported?
A)In the proprietary funds statements and in the business-type activities column of the government-wide statements.
B)In the governmental funds statements and in the governmental activities column of the government-wide statements.
C)In the governmental funds statements and in the business-type activities column of the government-wide statements.
D)In the proprietary funds statements and in the governmental activities column of the government-wide statements.
106.Where in the basic financial statements would one find fiduciary activities reported?
A)In the fiduciary funds statements and in the governmental activities column of the government-wide statements.
B)In the fiduciary funds statements and in the business like activities column of the government-wide statements.
C)In the fiduciary funds statements only.
D)In the government-wide statements only.
The following data applies to the next three questions:
The City of Charlestown levied property taxes in the amount of $9,000,000. It is estimated that 2% will not be collected. The taxes were levied July 1, 2013 for the fiscal year ended June 30, 2014. During the year ended June 30, 2014, $7,900,000 in property taxes were collected from this levy. It is estimated that $620,000 will be collected during the next 60 days, $300,000 will be collected more than 60 days after June 30, 2014, and $180,000 will never be collected.
107. When preparing the government-wide financial statements, how much property tax revenue should be recognized for the year ended June 30, 2014?
A)$7,900,000.
B)$8,820,000.
C)$8,200,000.
D)$9,000,000.
108. How much will the city report as Deferred Property Taxes in its June 30, 2014 government-wide Statement of Net Assets?
A)$ 620,000.
B)$ 320,000.
C)$ 300,000.
D)$ 0.
109. When preparing the General Fund financial statements, how much property tax revenue should be recognized from this levy for the year ended June 30, 2014?
A)$7,900,000.
B)$8,520,000.
C)$8,820,000.
D)$9,000,000.
