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Study Resources (Accounting)

21.              What is the reporting requirement for the fund balance section of the governmental funds balance sheet? a.governmental fund balances should be reported in a single amount b.governmental fund balances should be segregated in three components: invested in capital assets, net of related debt; restricted; and unrestricted c.governmental fund balances should be segregated.
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  Problems 36.              (Conceptual problem regarding the use of Proprietary Funds) State whether the following are true or false. For the false items, explain why they are false. a.              Enterprise Funds are used only when all services are provided to non-governmental entities, and Internal Service Funds are used only when all services are provided.
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11.              An Internal Service Fund (ISF) provided services to two agencies financed by the General Fund -- the Tax Department (which it billed $200,000) and the Comptroller's Office (which it billed $100,000). In the fund financial statements, the ISF reported a loss of $30,000. How should this information be reported.
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42.(Closing entries) The preclosing trial balance of the General Fund for the City of Thomaston shows the following balances at the end of its fiscal year. Budgetary fund balance $   10,000 Fund balance, beginning (actual) 150,000 Estimated revenues620,000 Appropriations610,000 Revenues (actual)625,000 Expenditures605,000 Based on information presented above:    Prepare closing entries for the budgetary and financial accounts.   Calculate the.
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21.              Liberty County maintains an investment pool on behalf of certain cities within the county. When it prepares its statement of fiduciary net position at year-end, how should Liberty value the corporate securities that it holds on behalf of the cities? a.              at the amount of cash originally sent by the.
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31.              Jace Township's General Fund reports a balance due from another fund.  This item and the corresponding interfund liability will appear in Jace Township's government-wide statement of net position only if the debtor fund is a.              an enterprise fund b.              a capital projects fund c.              an internal service fund d.              a permanent fund 32.              If.
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  45.              (Journal entries - property tax accounting) Prepare entries to record the following transactions and events related to Dominguez County's property taxes for the year beginning January 1, 2013: a.              To raise property tax revenues of $940,000, the County sends bills to property owners totaling $950,000. This will provide $10,000 for uncollectible.
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21.              A city constructs a new building by issuing debt in the amount of $3 million. How should the city report the debt proceeds in its Capital Projects Fund statement of revenues, expenditures, and changes in fund balance? a.              as a revenue b.              as an other financing source c.              as a liability captioned.
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50.              (Classification of fund balance) The General Fund of the City of Davis Fort has a total fund balance of $1,000,000 as of its fiscal year-end, December 31, 2013.  Please review the following additional information regarding General Fund activities and determine how much fund balance should be classified as nonspendable, restricted,.
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Multiple Choice 1.              The measurement focus used by governmental fund measures: a.              capital resources b.              spendable resources c.              spendable resources and capital resources d.              economic resources 2.              A government would refer to its property tax calendar to determine whether property taxes receivable at any given time are a.              collectible in part or in full b.              delinquent or current c.             .
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Multiple Choice 1.              In what way do Internal Service Funds differ from Enterprise Funds? a.              in the basis of accounting that they use b.              in the nature of the entities to which they supply goods or services c.              in the measurement focus that they use d.              in the kinds of financial statements that they prepare 2.             .
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11.              In Proprietary Fund accounting, which of the following statements are true? a.              materials and supplies are recognized as expenditures when purchased b.              materials and supplies are recognized as expenses when consumed c.              capital assets are considered as expenditures when they are acquired d.              capital assets are not recorded in proprietary funds 12.              You are.
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Multiple Choice 1.              Which of the following characteristics is true of fiduciary funds? a.              they report assigned fund balances b.              their net assets are unavailable to finance government programs c.              they prepare statements of cash flows for external reporting d.              their net assets cannot have debit balances under any circumstances 2.              If a government participates in.
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36.              (Preparation of Pension Trust Fund schedule of funding progress) Based on the following data elements (not all of which are relevant to this problem) calculate (a) the funded ratio and (b) the unfunded actuarial accrued liability as a percentage of covered payroll for Elisa County's schedule of funding progress at.
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21.              Proprietary funds sometimes report special assessment revenues.  What are special assessments? a.              a means of financing services that benefit one group of citizens more than the general public b.              an additional assessment made so that an internal service or enterprise fund can cover all of its costs each year c.              a fee.
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40.              (Journal entries for an Enterprise Fund) These transactions relate to Metro Bus, which provides transportation services to residents of Parker County. Metro Bus is accounted for as a County Enterprise Fund. Make journal entries to account for the following 2013 transactions in the Enterprise Fund. a.              On April 1, 2013, Metro.
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46.(Preparation of governmental funds financial statements) Following are December 31, 2013 pre-closing trial balances (budgetary accounts excluded) for the General Fund, Debt Service Fund, and Capital Projects Fund for Hebert County. Prepare a governmental funds balance sheet and a statement of revenues, expenditures, and changes in fund balances as of and.
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41.(True or false) State whether each of the following is true or false regarding the financial reporting entity. Explain why the false statements are false. a.              An example of a state's ability to impose its will on the operations of a legally separate toll road is its ability to approve the road's.
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11.              A Pension Trust Fund prepares two financial statements and two supplementary schedules. Where does the obligation (calculated by the actuary) for the total benefits earned by employees and retirees, as of a specific point in time, appear? a.              in the Statement of Fiduciary Fund Net Position b.              in the Schedule of.
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  Problems 36.(Classification of resource inflows in Fund operating statements) A county's Debt Service and Capital Projects Funds had the following resource inflows during 2013. State whether each of the inflows should be reported as revenues or as other financing sources in the fund-level statements of revenues, expenditures and changes in fund balances. a.             .
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Multiple Choice 1.              What is the purpose of a Debt Service Fund? a.              to account for resources that are restricted or otherwise limited to pay the debt service on all debt of the government, including Enterprise fund debt and short-term debt used to finance General Fund operations b.              to account for resources that.
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49.(Journal entries - comprehensive problem) The Town of Elderville accounts for its revenues and day-to-day operating expenditures in its General Fund. The Town uses encumbrance accounting to keep budgetary control over the appropriation for "other expenditures." Prepare journal entries to record these transactions in the General Fund for the calendar year.
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51.(Treatment of inventory—purchases method) The General Fund of the City of Mineral Wells shows $40,000 in supplies inventory on January 1, 2013.  During the year 2013, General Fund cash is used to purchase $110,000 of supplies.  On December 31, 2013, the city conducts an inventory count and finds $50,000 of supplies.
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  Problems 34.              (MatchingBfiduciary fund concepts) Listed immediately below are the 4 generic fiduciary funds.  Following these are 12 statements.  Match each fund with the 3 statements that best correspond to each fund.  No statement applies to more than 1 fund Pension trust fund Private purpose trust fund Investment trust fund Agency fund 1.              May be used to.
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39.(Journal entries for an Agency Fund) A state collects sales taxes both for itself and for counties that have elected to "piggy-back" their taxes on the state tax. The state takes several weeks to process returns and determine how much each participating government should receive, so tax collections are temporarily invested. .
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Multiple Choice 1.              An organization is a component unit of a primary government and hence part of the primary government's financial reporting entity, provided that: a.the primary government provides grants to the organization b.the primary government sells tax-exempt debt on behalf of the organization c.the primary government is financially accountable for the organization d.the primary.
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48.              (Property tax revenue recognition) In its General Fund balance sheet at December 31, 2013, Marathon City reported Property taxes receivable of $40,000, deferred property tax revenues of $15,000, and an allowance for uncollectible taxes of $0. At the start of the year 2014, Marathon City made the following journal entry.
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  Problems 39.(Matching captions with financial statements) Match the specific line items in the left-hand column below with the letter of the financial statement within which each line item would properly appear.  (Note that financial statements are identified generically and answers can be used more than once). 1.                                 Beginning fund balancea.Debt Service.
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  Problems 39.              (Reporting Internal Service Fund activity in government-wide financial statements) Regina County has an Internal Service Fund (ISF) that operates a motor pool for various county agencies, all of which receive appropriations from the General Fund. The amounts billed by the ISF during 2012 were: General government programs - $60,000; Public.
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31.              In the statement of revenues, expenditures, and changes in fund balances, a transfer received by the Debt Service Fund from the General Fund should be reported by the Debt Service Fund as a: a.              transfer in, in the other financing sources/uses section b.              negative expenditure, in the expenditure section c.              direct addition.
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46.              (Journal entries - tax revenue accounting - year-end adjustments) Prepare entries to record the following transactions and events related to Colfax County's tax revenues for the year beginning January 1, 2013: a.              To raise property tax revenue of $800,000, the County bills its property owners a total of $802,000, providing $2,000.
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39.(Journal entries with emphasis on Debt Service Fund) The Shannon Township Debt Service Fund accumulates resources to pay its $2 million general obligation debt. The debt is payable in equal annual installments of principal over 10 years with 5% interest on the unpaid principal.  Prepare journal entries to record the following.
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38.              (Computation of net investment in capital assets) The following information is taken from the financial statements of Corwin Water District 2, an Enterprise Fund. The revenue bonds were issued to construct water mains.  Based on these data, compute the amount that the Fund should report on its statement of net.
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44.(Selected journal entries for several funds) Prepare entries to record the following selected transactions. Identify the fund affected by the transaction.  If a transaction affects more than one fund, prepare entries for all affected funds.  Use these abbreviations for the funds: GF - General FundCPF - Capital Projects Fund DSF- Debt Service FundPF.
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37.              (Development of billing rate for an Internal Service Fund) The City of Casa Cortez uses an Internal Service Fund (ISF) to provide centralized printing services for all City agencies. City agencies are billed on a per-page basis (number of pages in a document times the number of documents printed). The.
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11.Accrued interest on the following type of debt is reported in a governmental fund: a.              short-term tax anticipation notes payable b.              serial bonds c.              general obligation bonds d.              long-term bank notes 12.Which of the following groups of accounts best describes the types of assets and liabilities likely to be found in Capital Projects Funds? a.              cash,.
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47.              (Journal entries - interfund transactions) Theodore County uses a General Fund, a Special Revenue Fund, and an Enterprise Fund. The Special Revenue Fund is financed by a grant from the state to provide care for the elderly. The Enterprise Fund provides bus service both to the public and to government.
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31.What is the general rule for reporting on funds in the fund-level financial statements for fiduciary funds? a.There is no requirement for reporting on fiduciary funds in the fund-level statements. b.All individual major funds must be reported in separate columns of the fund-level financial statements for fiduciary funds; nonmajor funds may be.
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40.(Journal entries to record a capital lease transaction) A town enters into a lease-purchase agreement with Trucks, Inc. to acquire four garbage trucks. The agreement provides that the town pay $100,000 at the end of each year for four years. Upon full payment, the trucks become town property. The agreement is.
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38.(Journal entries with emphasis on Capital Projects Fund) Prepare journal entries in the Capital Projects Fund to record the following transactions related to the construction of a building by the Village of Navajo Falls. (Note that only Capital Projects Fund journal entries are required.) The Village adopts a formal budget and.
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41(Preparing closing entries and financial statements from a trial balance.) Presented on the following page is the adjusted trial balance for the Water Enterprise Fund of the City of Whitt at December 31, 2013, the end of the fiscal year.  Based on this information, a.              prepare the entry necessary to close the.
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21.              Just before the close of its fiscal year, a city government issues $2 million of bonds to finance the acquisition of capital assets. However, no part of the debt is repaid by year-end and no part of the debt is used to purchase capital assets. What adjusting entry is.
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11.              Which fund categories should be included in the fund-level financial statements? a.              governmental, proprietary, and fiduciary b.              only governmental and proprietary c.              only governmental, proprietary, and blended component units d.              only governmental, proprietary, and discretely-presented component units 12.              Which of the following is one of the two basic criteria that makes a primary government.
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45.(Journal entries for several funds) Prepare entries to record the following transactions, showing which funds are affected. If a transaction affects more than one fund, prepare entries for all affected funds. a. The county adopts the following budget for its General Fund on January 1, 2013. Estimated revenues: Property taxes$520,000 Sales taxes80,000 Appropriations: Salaries480,000 Supplies and other60,000 Transfer to.
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38.              (Journal entries for Private Purpose Trust Fund) Towry School District accepts donations that are used to provide awards to graduating seniors. Record the following transactions in the Towry Private Purpose Trust Fund - Awards Fund.  Also, prepare a statement of changes in fiduciary net position for the Fund for the.
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43.(Preparation of closing entries and fund level financial statements) Following is a trial balance of City of Peachville's General Fund at December 31, 2013. Prepare: (a) closing entries; (b) a post-closing trial balance; (c) a statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 2013;.
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Multiple Choice 1.              To what extent should fund or fund type data be displayed on the face of government-wide financial statements? a.              Information should be displayed for the government as a whole, but individual funds or fund types should not be displayed b.              Information should be displayed by fund type, with a total.
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42.(Preparing entries to close a Capital Projects Fund) [see p. 195… uses “close” not “abolish”] You are the Finance Director of the Town of Blue Mountain.  Presented below is the trial balance for a Capital Projects Fund of the Town at October 31, 2013.  The Town Engineer has advised you that.
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21.              Which of the following liabilities normally would not be reported in governmental funds? a.              accrued salaries payable b.              bonds payable c.              vouchers payable d.              all of the above are commonly reported in governmental funds e.              none of the above are commonly reported in governmental funds 22.              Governmental fund liabilities are: a.              claims against current financial resources b.             .
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11.              Which of the following best describes the general principle for recognizing property tax revenues in the General Fund? a.              They should be recognized in the current period to the extent that cash is collected b.              They should be recognized for the entire amount levied for the current period, regardless of when.
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