Question :
57.Governmental fund-basis statements prepared using the________, and must be converted : 1255520
57.Governmental fund-basis statements are prepared using the________, and must be converted to the ________ to be incorporated in the government-wide statements.
A) Accrual basis, modified accrual basis.
B) Accrual basis, tax basis.
C) Modified accrual basis, accrual basis.
D) Cash basis, accrual basis.
58.The governmental funds follow __________ where the government-wide statements follow ___________.
A) Modified accrual accounting, accrual accounting.
B) Accrual accounting, modified accrual accounting.
C) Accrual accounting, accrual accounting.
D) None of the above.
59.The reconciliations required to be presented on the face of the governmental fund financial statements or in separate schedule immediately after the fund financial statements include:
A) Reconciliation from the governmental fund Balance Sheet to the Statement of Net Assets.
B) Reconciliation from the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities.
C) Both A & B.
D) No reconciliations are required to be submitted.
60.When preparing government-wide financial statements, the modified accrual basis governmental funds are adjusted for all of the following events except?
A)Long-term debt related events
B)Change in current assets and current liabilities from year to year
C)Internal service fund activities
D)Interfund activities
61.When preparing government-wide financial statements, the modified accrual basis governmental funds are adjusted for which of the following events?
A)Capital asset related events
B)Long-term debt related events
C)Internal service fund activities
D)All of the above
62.Which of the following would not be an adjustment for long-term debt when preparing government-wide financial statements?
A)Changing “proceeds of bonds’ to debt liabilities
B)Changing expenditures for debt service principal to reduction of liabilities
C)Amortizing bond premiums
D)Recording the cash received from a debt issue
63.Which of the following statements is not correct with respect to the preparation of government-wide statements?
A)A worksheet entry is required to record depreciation expense on capital assets of governmental activities
B)Enterprise funds are reported in the business-type activities column of the government-wide statements.
C)Worksheet entries must be made to eliminate operating profits earned by enterprise funds.
D)A worksheet entry is required to eliminate the charge to expenditures for capital outlay and record those expenditures as capital assets
64.A local government purchased a building and recorded the event by debiting Expenditures – Capital Outlay and crediting Cash. What would be the worksheet entry to prepare the government-wide statements?
A)Debit to Capital Assets and credit to Expenditures – Capital Outlay
B)Debit to Capital Assets and credit to Cash
C)Debit to Capital Assets and credit to Accumulated Depreciation-Capital Assets and Expenditures – Capital Outlay
D)Debit to Capital Assets for the book value of the asset and credit to Expenditures – Capital Outlay
65.A local government recorded the sale of a capital asset at a gain by recording a debit to cash and credit to proceeds of sale of capital asset. What is the worksheet entry when preparing the government-wide statements?
A)Debit to Proceeds of sale of capital asset and credit to Gain on sale of capital asset
B)Debit to Cash and credit to capital asset (net) and credit to Gain on sale of capital asset
C)Debit to Proceeds of sale of capital asset and credit to capital asset (net) and Gain on sale of capital asset
D)None of the above
66.A local government issued bonds and recorded the event by debiting Cash and crediting Other Financing Source – Proceeds of Bonds and Other Financing Source – Premium on Bonds. What is the worksheet entry when preparing the government-wide statements?
A)Debit Other Financing Sources – Proceeds of Bonds and Other Financing Sources – Premium on bonds and Credit Bonds Payable and Premium on Bonds
B)Debit Cash and Credit Bonds Payable and Premium on bonds
C)Debit Other Financing Sources – Proceeds of Bonds and Credit Bonds payable and Premium on Bonds
D)No adjustment is necessary
