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Study Resources (Accounting)

  Problems 43.              (Identifying the net asset classifications and funds used for transactions by NFPOs) The following transactions pertain to the activities of the Whitt Shakespeare Company (WSC), a not-for-profit entity. For each transaction, state which classification of net assets is affected: unrestricted, temporarily restricted, or permanently restricted. In addition, state the fund.
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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 a defined contribution pension plan, which.
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47.(Discussion problem - contributions to collections) Art on Wheels is a newly-formed not-for-profit corporation. Its purpose is to promulgate public appreciation of 19th century American artists. It plans to solicit works of art from donors and to display them both in a museum and in a specially constructed bus that will.
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Problems 41.(Journal entries for patient service revenues; computation of net patient service revenue) Prepare journal entries to account for the following transactions for Cort Hospital. Also, compute the net service revenue to be reported in the Hospital's statement of operations. a.Cort provided services to patients during the year, billing a total of $59,500,000.
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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 between.
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Multiple Choice 1.Which of the following statements is generally true about the basis of accounting used by governmental and not-for-profit hospitals? a.both use the full accrual basis of accounting b.both use the modified accrual basis of accounting c.governmental hospitals use the modified accrual basis of accounting and not-for-profit hospitals use the full.
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31.A donor had previously donated $2,000 to a not-for-profit entity, stipulating that the gift must be used to finance the annual Fall Harvest festival. The festival is held and the gift is used for the stipulated purpose. Which of the following best describes the effect of the journal entries needed.
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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 government.
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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 computing an hourly billing rate for.
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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 charged to cover 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 cities.
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45.              (Distinguishing among the three net asset classifications) Assume that Andy Kelly Hospital (Problem 44) is a not-for-profit hospital. For each of the six transactions or events shown in that problem, state which of the three net asset classifications are affected: unrestricted; temporarily restricted; or permanently restricted. 46.(Preparing a not-for-profit hospital operating.
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31.              Differences between a hospital's established rates and amounts negotiated with third-party payers are referred to as: a.contractual adjustments b.unrecovered costs c.equity adjustments d.restricted revenues 32.Which of the following is reported as an expense by not-for-profit hospitals? a.charity care b.bad debts c.contractual adjustments d.volunteer and employee discounts 33.The accounting and financial reporting procedures for which fund category apply to governmental.
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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 safety.
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41.              (Entries to prepare government-wide financial statements - revenue and expense accruals) For the following situations, make adjusting entries necessary to prepare government-wide financial statements. Where appropriate, take account of the amounts reported in the fund-level financial statements. a.To prepare its government-wide financial statements for the year ended December 31,2012, 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 a government uses the "modified approach".
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43.(Accounting for donations and donor-restricted and board-designated resources) A not-for-profit hospital uses the following funds to account internally for its resources: General Fund (GF); Specific Purpose Funds (SPF); Plant Replacement and Expansion Funds (PREF); and Endowment Funds (EF). The hospital is establishing a special trauma unit for brain-related injuries, and is.
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43.(Preparation of Government-Wide Financial Statements) On the following page is the government-wide adjusted trial balance for the Town of Catlettville as of June 30, 2013, the end of the fiscal year.  The adjustments needed to convert accounting information from the current financial resources measurement focus and modified accrual basis of accounting.
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Problems 20.(Matching) Match the entity that takes the action with the nature of the action taken by putting the number of the action taken (second column) next to the letter for the entity (first column). Entity that takes action Nature of action taken a. Congress1. Allots b. Office of Management and Budget2. Appropriates c. Treasury.
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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 for the government.
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  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 to.
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Multiple Choice 1.For not-for-profit entities, external financial reporting focuses on: a.individual funds b.fund groups c.the organization as a whole d.major funds 2.When a not-for-profit entity's funds are classified as restricted, who has imposed the restrictions? a.the entity's board of trustees b.donors c.the bondholders d.government regulators 3.Under which of the following circumstances would a not-for-profit organization's net assets be classified as temporarily.
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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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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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11.What can a financial analyst learn from a hospital's number of days' revenue in receivables? a.the hospital's accounts receivable collection efficiency b.the average length of stay of patients in the hospital c.the average daily occupancy rate of the hospital's beds d.the proportion of hospital beds occupied by patients covered by self-pay patients 12. and 13. This.
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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 account for.
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Problems 26.(Assessment of a hospital's accounts receivable collection efficiency) Assess Plains Regional Hospital's accounts receivable collection efficiency based on the following set of facts: a.Days' revenue in patient accounts receivable at December 31, 2012, for Plains Regional Hospital - 76 days b.Extracts from Plains Regional Hospital's calendar year 2013 financial statements: Net patient accounts.
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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 in.
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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.
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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 Funding Progress c.in.
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45(Journal entries to record transactions) Prepare journal entries to record the following transactions of Weatherford Teen Foundation, Inc. (WTFI), a not-for-profit entity that provides counseling, training, and other programs for young people. WTFI accounts for all transactions in a single fund, recording them so as to identify the three classes.
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11.In response to a fund-raising campaign, an electric utility provides free electricity to a not-for-profit entity. How should the not-for-profit entity report this gift in its statement of activities? a.It should not be reported in the statement. b.It should not be reported on the face of the statement, but should be disclosed.
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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.
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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 financially accountable for a legally.
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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.A school district wants to establish.
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11.A federal agency received allotments of $95,000. It does not use commitment accounting. It placed three orders totaling $70,000, received all the supplies ordered, and approved invoices totaling $73,000 for the three orders. It then consumed $55,000 of those supplies. It then placed another order for $12,000, but the agency.
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Multiple Choice 1.What is the major purpose of the statement of net position from a financial analysis perspective? a.to describe the major sources of revenue and types of expense b.to show the inflows and outflows of cash during the reporting period c.to show whether the entity was efficient and effective in delivering services d.to provides.
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23.(Journal entries - set of transactions) The Federal Bureau of Nutrition Standards (BNS), a unit of the Health Department, is responsible for establishing standards for the quality and nutritional content of packaged food products. Prepare budgetary and proprietary entries to record the following transactions for the month of October, 2013. a.BNS received.
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21.After it prepares its financial statements, a hospital has historically received malpractice claims for events occurring before the balance sheet date. How should the hospital handle these incurred but not reported (IBNR) claims its financial statements? a.take no action until it actually receives claims. b.disclose, in the notes to its financial statements,.
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28.(Financial statement analysis of a governmental enterprise hospital) Following is a trial balance (with 000 omitted for simplification) showing the accounts of Beta Hospital at December 31, 2013. Using the information from the trial balance, analyze Beta's financial statements by answering the following questions. Show all calculations. a.What is the current ratio?.
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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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Multiple Choice 1.In the federal government, which organizations make appropriations and which make apportionments? a.The Congress makes appropriations, and department heads apportion the appropriations to individual agencies or divisions within the department. b.The Congress makes appropriations, and the Treasury Department appropriates to individual departments the total amount apportioned by the Congress. c.The President makes.
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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 borrows.
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11.A not-for-profit hospital provided charity care. The value of the hospital's service for the year, at its normal billing rates, was $4 million. How should the hospital report the charity care services in its financial statements? a.include the $4 million as part of patient service revenue and report an operating expense.
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30.              (Analyzing a governmental entity's financial statements) The following data comes from the 2013 financial statements of the Village of Matthews. Although presented in summarized format, the balance sheet debits and credits are equal and the operating statement information is complete. General Fund - Balance Sheet Elements Cash$1,200,000 Short-term investments405,000 Property taxes receivable - delinquent282,000 Due.
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