Question : 67.A local government recorded the payment of bond principal by : 1255521

67.A local government recorded the payment of bond principal by debiting Expenditure:  bond principal and crediting Cash.  What is the worksheet entry when preparing the government-wide statements?

A)Debit Bonds Payable and credit Cash

B)Debit Bonds Payable and credit Expenditure: Bond Principal

C)Debit Cash and credit Expenditure:  Bond Principal

D)None of the above

68.In its Statement of Net Assets, a government reported:

?              assets of $90 million, including $30 million in capital assets (net), and

?              liabilities of $40 million, including long-term debt of $15 million, all related to capital asset acquisition.

The government also reported $10 million of net assets were restricted for payment of debt service. The government’s unrestricted net assets would be reported as:

A)$15 million.

B)$25 million.

C)$30 million.

D)$35 million.

69.A governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $5 million. Capital assets for that government cost $90 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect a(an):

A)Decrease of $1 million.

B)Increase of $l million.

C)Increase of $5 million.

D)Decrease of $4 million.

70.The City of Charlotte reported property tax revenues in 2014 in the amount of $10 million. The deferred property taxes reported in the General Fund’s balance sheet was $ 300,000 on December 31, 2013 and was $ 375,000 on December 31, 2014.   During 2014, $9,000,000 was collected.  What amount should the city report for Property Tax Revenue in its year ended December 31, 2014 government-wide Statement of Activities?

A)$  9,075,000

B)$  9,975,000

C)$ 10,075,000

D)$ 10,375,000

71.A government’s Statement of Revenues, Expenditures, and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000. That statement also reflected expenditures for debt service in the amount of $3,000,000, including $2,600,000 for principal payments. Assuming no other changes, the effect, 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 for governmental activities in the Statement of Activities would be a:

A)$1,000,000 increase.

B)$1,000,000 decrease.

C)$1,600,000 increase.

D)$1,600,000 decrease.

72.A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $l, 100,000; (2) a transfer from the General Fund to an enterprise fund in the amount of $1,300,000; and (3) a transfer from the General Fund to a special revenue fund in the amount of $500,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:

A)$   500,000.

B)$1,300,000.

C)$2,400,000.

D)$2,900,000.

73.Which of the following is true regarding the government-wide statements?

A)Balances from enterprise funds’ statements are entered in the business-type activities sections of the government-wide statements without adjustment.

B)Government-wide statements eliminate interfund transactions, within columns.

C)Both of the above.

D)Neither of the above.

74.A government reported an “other financing source” in the amount of $750,000, related to the sale of land in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. The land had a cost of $275,000. The adjustment in the reconciliation, when moving from the governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a(an):

A)Increase of $475,000.

B)Decrease of $475,000.

C)Increase of $275,000.

D)Decrease of $275,000.

75.A government incurred expenses for its infrastructure as follows: $20 million for general repairs; $18 million to extend the life for existing infrastructure; and $15 million for additions and betterments. The government chooses to use the modified approach to record infrastructure. The infrastructure has a basis of $400 million and would be depreciated over a 40 year life, if depreciation were charged. The amount that would be shown as expense in the Statement of Activities would be:

A)$33 million.

B)$35 million.

C)$38 million.

D)$53 million.

76.The total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time is known as:

A)Debt margin.

B)Debt limit.

C)Borrowing power.

D)Maximum debt.