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Study Resources (Accounting)

Problems Topic:Journal Entries to Yield Government-Wide Financial Statements from Fund Financial Statements LO:2 1.The City of Mirrenis preparing its Government-Wide financial statements for the year. Its accountant must prepare a number of journal entries to recognize assets and liabilities previously omitted from the Fund financial statements and to recognize revenues and expenses for.
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Topic: Preparation of Government-Wide Financial Statements (Continuation of P1) LO:2 2.The City of Mirrenreports the following Fund Financial Statements for its General Fund: Balance Sheet Cash $8,624 Receivables: Real Estate & Personal Property 540 Intergovernmental 5,584 Total Assets $14,748 Payables $640 Deferred Revenues 6,142 Total Liabilities 6,782 Fund Balances: Assigned 1,620 Unassigned 6,346 Total Fund Balances 7,966 Total Liabilities and Fund Balances $14,748 Statement of Revenues, Expenditures, and Changes in Fund Balances Revenues: Real Estate Taxes $20,184 Intergovernmental 3,686 Total Revenues 23,870 Expenditures: General.
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Topic:Journal Entries for Government-Wide Financial Statements ? Deferred Revenues and Compensated Absences LO:2 3.The City of Madisonis preparing its Government-Wide financial statements from its Fund financial statements.The City records Deferred Revenue with a book value of $200,000 and Compensated Absences of $30,000 at the beginning of the year. During the year, these.
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Topic:Preparation of Journal Entries for Not-for-Profit LO:1,2 3.Wind Systems is a not-for-profit organization that engages in wind energy research. During the year, the organization recorded a number of financial activities. a.The organization recognized the following revenues (the contributions are all on account and the investment returns are in cash): Revenues - Contributions (Unrestricted) 182,000 Revenues.
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Exercises Topic:Preparation of Financial Statements for Not-for-Profit LO: 1,2 1.Following is financial data for the Center for New Horizons, a not-for-profit organization promoting sustainable business operations:   Unrestricted Temporarily Restricted Permanently Restricted Revenues - Contributions $1,288,000 $128,800 $20,700 Revenues - Investment 8,832 13,248 22,080 Net Assets, beginning of year 736000 506,000 184,000 Contributions Receivable 296,700 Expenses - Program 1,196,000 PPE, net 570,400 Depreciation expense 41,400 Long-term Liabilities 315,100 Cash 5,060 Payables 216,200 Investments 1,159,200 Net Assets.
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Topic: Allocation of Interest on Capital Accounts and Profit to Partners LO: 4 12.Assume that there are three partners in a partnership, A, B, and C. Partner C provides services to the partnership and is entitled to a salary of $75,000. In addition, assume that the Partnership Agreement provides for an interest.
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Chapter 11:Accounting for Not-for-Profit Organizations Multiple Choice Topic: Statement of Financial Position LO: 1 1.Which of the following categories are included in the Statement of Financial Position? a.Assets, Liabilities, and Equity b. Net assets and equity c.Assets, Liabilities and Net Assets d. None of the above Topic: Statement of Financial Position LO: 1 2.  Which of the following statements is correct.
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Topic: Remeasurement of Financial Statements LO:2 5.Assume that our company owns a subsidiary operating in Germany. The subsidiary has adopted the Euro (€) as its functional currency. Following are the subsidiary’s financial statements (in €) for the most recent year: Subsidiary (in €) Income statement: Sales 9,000,000 Cost of goods sold (5,400,000) Gross Profit 3,600,000 Operating expenses (1,920,000) Depreciation (420,000) Remeasurement gain or.
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Topic: Fund Accounting Journal Entries – Issuance and Repayment of Bond LO:4 6.Assume that a city issues a $500,000 bond at par. The city, subsequently, pays $20,000 in interest onthe bond and $10,000 of the principal. Required: Prepare the journal entries to record the issuance of the bondand the subsequent payments. Topic: Fund Accounting.
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Topic: Disclosures Regarding Major Customers LO: 1 11.Which of the following statements about disclosures of major customers is true? a.Companies must disclose information about the extent of their reliance on major customers if revenues from transactions with a single external customer amount to 5% or more of the company’s total revenues b.Companies must disclose.
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Chapter 10:Government Accounting: Government-Wide Financial Statements Multiple Choice Topic: Comprehensive Annual Financial Report LO: 1 1.Which of the following component are required in the Comprehensive Annual Financial Report? a.Fund Financial Statements b. Government-wide financial statements c.Management discussion and analysis d. band c e. a, b, and c Topic: Government-Wide Financial Statements LO: 2 2.  Which of the following statements is correct about.
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Multiple Choice Questions 24.Which of the following describes the primary objective of the balance sheet? A. To measure the net income of a business up to a particular point in time. B. To report the difference between cash inflows and cash outflows for the period. C. To report the financial position of the.
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  Exercises Topic:Quantitative Thresholds for Classification as an Operating Segment LO: 1 1.Our company has 5 business units that we classify as operating segments. Financial data for these units follows: ($1,000s) A B C D E Sales $1,000 $400 $1,600 $2,400 $1,000 Profit ($400) $60 $1,000 ($400) $400 Assets $2,000 $160 $1,400 $8,000 $1,600 Required:Which of these operating segments should be disclosed in the footnotes to.
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Topic: Translation of Financial Statements – Computation Using Direct Method LO: 1 7.Assume that our subsidiary reports the following: BOY Net assets €4,657,500 Net income €966,000 Dividends €(96,600) BOY Cumulative Translation Adjustment $1,798,946 Also assume the following exchange rates for the year ($:€1): BOY Rate $1.30 EOY rate $1.40 Avg. rate $1.35 Dividend rate $1.39 Required: Compute the Cumulative Translation Adjustment balance at the end-of-year.
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11.The financial statement that shows an entity's economic resources and claims against those resources is the balance sheet. 12.Stockholders' equity on the balance sheet includes common stock and retained earnings. 13.The amount of cash paid by a business for dividends would be reported as an operating activity cash flow on.
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Topic: Liquidation Schedule—Positive Capital Accounts LO:5 14.The ABC partnership reports the following condensed balance sheet: Cash $487,500 Liabilities $600,000 Noncash assets 956,250 Partner A, capital 337,500 Partner B, capital 337,500 Partner C, capital 168,750 Total assets $1,443,750 Total liabilities and partner capital $1,443,750 The partners wish to liquidate the partnership. The noncash assets are sold for $750,000 with the loss distributed to the partners in.
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Problems Topic: Consolidation of Foreign Subsidiary Using Current-Rate Method LO:1,3 1.Assume that our company owns a subsidiary operating in France. The subsidiary maintains is books in Euros (€) as its functional currency. Following are the subsidiary’s financial statements (in €) for the most recent year: Subsidiary (in €) Income statement: Sales 900,000 Cost of goods sold (540,000) Gross Profit 360,000.
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Topic: Admission of New Partner—Goodwill Method LO: 3 10.Assume that the partnership’s balance sheet reflects Partner Capital of $1,200,000 and $1,800,000, respectively, for Partner A and Partner B immediately prior to the admission of Partner C. Partner C is contributing $2,400,000 for a one-third ownership interest. Required:Prepare the journal entry to admit.
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Topic: Admission of a New Partner – Goodwill Method LO: 3 8. Refer to the fact set in Exercise 6. Assume that the partners believe that the payment by Partner Cprovides evidence of a previously unrecorded intangible asset in the partnership and the partners wish to record the intangible on the post-realignment.
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  Exercises Topic:Journal Entries for Government-Wide Financial Statements ? Capital Assets LO: 2 1.The City of Hebron is preparing its Government-Wide financial statements from its Fund financial statements. The City identifies Capital Assets with a book value of $200,000 at the beginning of the year that are depreciated at the rate of $20,000 per.
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Topic: Statement of Net Assets LO: 2 11.Which of the following statements about the Statement of Net Assets is false? a.The difference between assets and liabilities must be labeled as net assets, and cannot be labeled as equity, net fund balance, or other similar label. b.Assets are presented in order of liquidity and liabilities.
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Exercises Topic:Formation of Partnership – Bonus Method LO: 2 1.Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports the following balance sheet: Cash .$  60,000 Accounts payable. $80,000 Receivables 80,000 Accrued liabilities 60,000 Inventories 100,000 Total liabilities $140,000 Total assets $240,000 Net assets $100,000 Partner B is contributing cash of $140,000. The partners agree that the initial.
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Topic:Translation of Financial Statements LO: 1 3.Assume that our subsidiary reports the following financial statements in Euros (€): Subsidiary (in €) Income statement: Sales 1,125,000 Cost of goods sold (675,000) Gross Profit 450,000 Operating expenses (292,500) Net income 157,500 Statement of retained earnings: BOY retained earnings 590,625 Net income 157,500 Dividends (15,750) Ending retained earnings 732,375 Balance sheet: Assets Cash 320,175 Accounts receivable 261,000 Inventory 335,250 PPE, net 620,100 Total Assets 1,536,525 Liabilities and Stockholders’ Equity Current.
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True / False Questions 1.A business entity's accounting system creates financial accounting reports which are provided to external decision makers. 2.Business managers utilize managerial accounting reports to plan and manage the daily operations. 3.Borrowing money is an investing activity. 4.The balance sheet includes assets, liabilities, and stockholders' equity as of a.
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Chapter 13:Accounting for Partnerships Multiple Choice Topic: Partnership Form of Organization LO: 1 1.Which of the following doesnot describe the partnership form of organization? a.Partnerships allow numerous individuals to combine their efforts for a variety of business purposes in an organization that can last indefinitely. b. Partnerships can survive the admission of new partners and.
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Topic:LIFO Liquidation in an Interim Reporting Period LO:2 3.Assume that our records include the following two LIFO inventory cost pools: Units Cost/Unit BOQ 1,200 $40 Purchase #1 1,600 $60 Total 2,800 At the beginning of the quarter (BOQ), we report 1,200 units on hand at a cost of $40 per unit. Duringthe quarter, we sell 2,000 units.
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Topic:Journal Entries to Yield Government-Wide Financial Statements from Fund Financial Statements LO: 2 3.The City of Mundeleinis preparing its Government-Wide financial statements for the year. Its accountant must prepare a number of journal entries to recognize assets and liabilities previously omitted from the Fund financial statements and to recognize revenues and expenses.
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Topic:Preparation of Journal Entries and Financial Statements for Not-for-Profit LO:1, 2 2.TeensCouncil is a not-for-profit organization that provides support for teenage students. Prepare journal entries for each of the following activities: Required: 1.Prepare journal entries for each of the following activities: The organization recognized the following revenues (the contributions are all on account and the.
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Topic: Preparation of Fund Financial Statements LO:5 2.Assume that at the beginning of the fiscal year, the City of Maxwellreports the following balances in its accounts for the General Fund: General Fund Beginning Balances: DR CR Cash 4,830 Receivables: Real Estate & Personal Property 450 Intergovernmental 5,400 Payables 180 Deferred Revenues 5,850 Fund Balances: Assigned 1,350 Unassigned 3,300 10,680 10,680 Required:Using the journal entries you record for Problem 1 (above): Prepare the pre-closing trial balance for.
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44.Which financial statement would you use to determine a company's earnings performance during an accounting period? A. Balance sheet. B. Statement of stockholders' equity. C. Income statement. D. Statement of cash flows. 45.Which of the following equations best describes the income statement?  A. Assets - Liabilities = Stockholders' Equity. B. Net income = Revenues.
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Chapter 12:Segment Disclosures and Interim Financial Reporting   Multiple Choice Topic: Motivation for Segment Disclosures LO: 1 1.Which of the following best describes the motivation for and/or argument against segment reporting? a.Users argue for increased disclosures so that they may better understand the drivers of a company’s financial performance. b. Companies have argued against increased disclosures.
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  Topic:Liquidation Schedule—One Negative Capital Account with No Capital Contribution LO: 5 16.The ABC partnership reports the following condensed balance sheet: Cash $1,010,000 Liabilities $1,600,000 Noncash assets 2,550,000 Partner A, capital 900,000 Partner B, capital 900,000 Partner C, capital 160,000 Total assets $3,560,000 Total liabilities and partner capital $3,560,000 The partners wish to liquidate the partnership. The noncash assets are sold for $2,000,000 with the loss.
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Topic: Purchase of PPE Assets LO: 4 21.Which of the following statements is true? a.PPE assets that are purchased by a government are recorded as assets in fund-based financial statements and are depreciated over their estimated useful lives. b.PPE assets that are purchased by a government are recorded as assets in fund-based financial statements,.
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34.Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?  A. Income statement. B. Balance sheet. C. Statement of stockholders' equity. D. Statement of cash flows. 35.Which of the following is considered to be an expense on.
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Topic:Fund Accounting Journal Entries – Closing Entries LO: 4 4.Assume that a city records $540,000 of encumbrances outstanding as of the end of the year. Required:  Prepare the journal entries to close the encumbrance account and to reestablish the encumbrance in the succeeding year, assuming that encumbrances lapse at year-end (i.e., budgetary authority.
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Topic: Preparation of Government-Wide Financial Statements (Continuation of P3) LO: 2 4.The City of Mundelein reports the following Fund Financial Statements for its General Fund: Balance Sheet Cash $17,750 Receivables: Real Estate & Personal Property 1,332 Intergovernmental 13,774 Total Assets $32,856 Payables $1,576 Deferred Revenues 15,152 Total Liabilities 16,728 Fund Balances: Reserved for - Encumbrances 3,996 Unreserved 12,132 Total Fund Balances 16,128 Total Liabilities and Fund Balances $32,856 Statement of Revenues, Expenditures, and Changes in Fund Balances Revenues: Real.
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Topic: Measurement Focus LO: 3 11.“Current Financial Resources” include: a.Only cash assets. b.Both cash and investments. c.All assets and liabilities. d.Only current liabilities. e. None of the abovecompletely describe the concept of “current financial resources.”   Topic: Modified Accrual Basis of Accounting LO: 3 12.Under the “modified accrual basis of accounting”: a.Revenues are recognized when they are both measurable and.
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Topic: Preparation of Statement of Activities LO:2 5.The City of San Almosreports the following revenues for the fiscal year: Real Estate And Personal Property Taxes $38,164 Motor Vehicle And Other Excise Taxes 1,988 Grants And Contributions Not Restricted 1,956 The City also reports the following revenues from fees it charges for services and operating grants and contributions.
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Topic: Contributions LO: 2 11.Which of the following statements about contributions is false? a.If the contribution is made in the form of a donor’s promise to pay, revenue is recognized and a receivable is recorded when the promise is made, provided that there is sufficient evidence in the form of verifiable documentation that.
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Topic: Fund Accounting Journal Entries – Accounting for Inventories (Purchases Method) LO: 4 8.Assume that a town purchases $5,000 of supplies on account toward the end of the year. A year-endaudit reveals that $1,000 of the inventories remain unused. Required: Prepare the journal entry for the purchase of the inventories and the year-end.
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Topic: Remeasurement of Financial Statements LO:2 6.Assume that our company owns a subsidiary operating in Switzerland. The subsidiary has adopted the Swiss Franc (CHF) as its functional currency. Following are the subsidiary’s financial statements (in CHF) for the most recent year: Income statement: Sales 2,700,000 Cost of goods sold (1,620,000) Gross profit 1,080,000 Operating expenses (576,000) Depreciation (126,000) Remeasurement gain or loss Net.
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Chapter 9:Government Accounting: Fund-Based Financial Statements Multiple Choice Topic: Fund Financial Statements LO: 5 1.Which of the following best describes the notion of “accountability”? a.Accountability refers to the requirement that governments maintain an appropriate chart of accounts to aid them in the maintenance of their accounting records. b. Accountability is based on the belief that.
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  Topic: Liquidation Schedule—Safe Payment Schedule LO: 5 18.On the date the partners in the ABCD partnership decided to dissolve their partnership, the partners had the following pre-liquidation Capital Account balances: Partner A, capital $112,000 Partner B, capital 164,000 Partner C, capital 72,000 Partner D, capital 48,000 A, B, C and D share residual profits and losses in a 4:3:2:1 ratio. Accrued.
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Topic: Preparation of Journal Entries for Not-for-Profit LO: 1,2 2.The Basset HoundBoosters is a not-for-profit organization that supports the raising and promotion of Basset Hounds. During the year, the organization recorded a number of financial activities. The organization recognized the following revenues (the contributions are all on account and the investment returns.
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Problems Topic: Fund Accounting Journal entries – Series of Transactions LO:4 1.Following are a number of events relating to the City of Maxwell(all amounts in $1,000s). a.The citizens approve the following budget for the year: Estimated revenues $23,678 Estimated other financing sources 4,000 Appropriations (23,184) Budgetary fund balance $   4,494 b.The City records the following revenues (on account) and other financing sources (paid.
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Topic:Consolidation of Foreign Subsidiary using Current-Rate Method LO:1 2.Assume that our company owns a subsidiary operating in Great Britain. The subsidiary maintains is books in Pound sterling (£) as its functional currency. Following are the subsidiary’s financial statements (in £) for the most recent year: Subsidiary (in  £) Income statement: Sales 5,100,000 Cost of goods sold (3,060,000) Gross.
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Problems Topic: Preparation of Journal Entries and Financial Statements for Not-for-Profit LO:1, 2 1.Solidarity Bridge is a not-for-profit organization that providescritical medical care to those living in poverty. Required: 1.Prepare journal entries for each of the following activities: The organization recognized the following revenues (the contributions are all on account and the investment returns are.
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Topic:Admission of New Partner LO:3 4. Assume that Partners A and B each report a Capital Account of $1,200,000. Partner C wants to join thepartnership as an equal one-third partner in consideration for a combined payment to Partners A and B of$800,000. Required:Record the journal entry on the books of the partnership.
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Topic:Translation of Financial Statements LO: 1 4.Assume that our subsidiary reports the following financial statements in Brazilian Real (R$): Subsidiary (in R$) Income statement: Sales 1,500,000 Cost of goods sold (900,000) Gross Profit 600,000 Operating expenses (390,000) Net income 210,000 Statement of retained earnings: BOY retained earnings 787,500 Net income 210,000 Dividends (21,000) Ending retained earnings 976,500 Balance sheet: Assets Cash 426,900 Accounts receivable 348,000 Inventory 447,000 PPE, net 826,800 Total Assets 2,048,700.
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