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Identify and describe four types of interfund activities. 12.The following funds and account groups are recommended for use in accounting for state and municipal governmental financial operations: A. General Fund. B.Special Revenue Fund. C.Debt Service Fund. D.Capital Projects Fund. E.Agency Fund. F.Enterprise Fund. G.Internal Service Fund. H.Trust Fund. I.Government-wide Statement of Activities. J.Government-wide Statement of Net Assets. Identify, by.
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13. When must a firm present segmental disclosures for major customers? What is the reason for this requirement? 14. How are common costs distinguished from general corporate expenses for segmental purposes? 15. What is the purpose of interim financial reporting? 16. Some accountants hold the view that each interim period.
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TRUE/FALSE 1.The three themes of the text are operating systems, e-business, and internal control. 2.In an assurance service the accountant will provide the original information used for decision making. 3.Financial care for the elderly has been identified by the AICPA as a potential assurance service. 4.Wireless technologies was identified as one of the ten.
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19-7 The following events were recorded on the books of Denton Hospital for the year ended December 31, 2011. 1.Revenue from patient services totaled $12,000,000. The allowance for uncollectibles was established at $2,500,000. Of the $12,000,000 revenue, $4,500 was recognized under cost reimbursement agreements. This revenue is subject to audit and retroactive.
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11.According to the text, data retrieved by the information system from the external environment or from another area within the information system is a.input data b.output data c.business event data d.master data 12.____ represent the books of original entry used for recording most business events. a.Input data b.Output data c.Business event data d.Master data 13. A man made system consisting.
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19-4An NNO obtained cash for the acquisition of property and equipment as follows: Loan proceeds$200,000 Contributions$400,000 These funds are used to acquire land. In addition, $20,000 in principal and $2,000 in interest is paid on indebtedness relating to property and equipment. Depreciation on property and equipment for the year is $80,000. Required: Prepare all necessary.
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21.Which one of the following statements is not required for NNOs?     statement of financial position    statement of cash flows     statement of changes in net assets    statement of activities 22.Admissions, counseling and registration are considered to be:     educational and general services.    auxiliary enterprises.     student services.    institutional support. 23.A good reason for NNOs to.
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In what funds might property and other non financial resources be recorded? Why are budgeted revenues and expenditures formally recorded in the records of the general fund but not in the records of a capital projects fund? Are all major capital facilities acquisitions ac-counted for in a capital projects fund?.
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17-6At the beginning of 2011, the City of Wichita reported an Unreserved Fund Balance of $890,000 and a supplies inventory balance of $280,000. During the year, Wichita purchased $360,000 in supplies and used $350,000 worth. The city will report a reserve for supplies inventory. Required: a.Prepare the journal entries needed to account.
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What is the objective of the procedures used for the preparation of an advance cash distribution plan? What is the “loss absorption potential”? In what order must partnership assets be distributed? Business Ethics Question from the Textbook You and two of your former college friends, Freeman and Oxyman, formed a partnership called FOB, which.
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Chapter 18 Introduction to Accounting for State and Local Governmental Units Multiple Choice 1.The highest level of priority of pronouncements that a government entity should look to for accounting and reporting guidance is a.GASB Technical Bulletins. b.GASB Concepts Statements. c.AICPA Industry Accounting Guides. d.GASB Statements. 2.Which of the following funds would account for operations that are financed and.
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11.Encumbrances would not appear in which fund? a.General b.Enterprise c.Capital projects d.Special revenue 12.Which type of fund can be either expendable or nonexpendable? a.Debt service b.Enterprise c.Trust d.Special revenues 13.Which of the following funds frequently does not have a fund balance? a.General fund b.Agency fund c.Special revenue fund d.Capital projects fund 14.A city should record depreciation as an expense in its a.general fund and enterprise fund. b.internal.
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Problems 19-1The following events affected the Burlington University Loan Fund: 1.$300,000 is received from a donor to establish a student loan fund. Loans will carry a 6% annual interest rate. 2.The Loan Fund loaned the $300,000 to students. Five percent of the loans are estimated to be uncollectible. 3.Loans of $50,000 were repaid with.
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MULTIPLE CHOICE 1.The three themes of the text book include all of the following except: a.enterprise systems b.risk assessment c.e-business d.internal control 2.Efficiency and effectiveness of operations are goals of: a.enterprise systems b.risk assessment c.e-business d.internal control 3.A set of interdependent elements that together accomplish specific objectives is a a.system b.subsystem c.database d.accounting information system 4.A system can be further divided into a.input data b.subsystems c.databases d.enterprise systems 5.A system that.
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Short Answer from the Textbook 1. Describe the tax treatment of partnership income.   2. Distinguish between a partner’s interest in capital and his interest in the partnership’s income and losses. Also, make a general distinction between a partner’s capital account and his drawing account. 3. Explain why a partnership is viewed.
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Problems 16-1The NOR Partnership is being liquidated. A balance sheet prepared prior to liquidation is presented below: AssetsLiabilities & Equities Cash$240,000Liabilities$  160,000 Other Assets300,000Reese, Loan60,000 Nen, Capital180,000 Ott, Capital60,000      Reese, Capital    80,000 Total Assets$540,000Total Equities$540,000 Nen, Ott, and Reese share profits and losses in a 40:40:20 ratio. All partners are personally insolvent. Required: A.Prepare the journal entries necessary to record the.
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Short Answer Questions from the Textbook Why are realization gains or losses allocated to partners in their profit and loss ratios? In what manner should the final cash distribution be made in partnership liquidation? Why does a debit balance in a partners’ capital account create problems in the UPA order of payment for.
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What is “marshaling of assets”? To what extent can personal creditors seek re-covery from partnership assets? In an installment liquidation, why should the partners view each cash distribution as if it were the final distribution? Discuss the three basic assumptions necessary for calculating a safe cash distribution. How is this safe cash distribution.
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11.Which of the following requires the use of the encumbrance system? a.Capital projects fund b.Debt service fund c.Internal service fund d.Enterprise fund 12.The following related entries were recorded in sequence in the general fund of a municipality: 1.Encumbrances15,000 Reserve for Encumbrances15,000 2.Reserve for Encumbrances15,000 Encumbrances15,000 3.Expenditures15,350 Vouchers Payable15,350 The sequence of entries indicates that a.an adverse event was foreseen and a reserve of.
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Short Answer Questions from the Textbook Eleven funds are recommended to account for the various activities and resources of a govern-mental unit. Identify these funds by title and type and briefly state (in two sentences or less) the basic purpose of each fund. Why are governments required to prepare financial statements.
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11.In a partnership liquidation, the final cash distribution to the partners should be made in accordance with the: a.partners' profit and loss sharing ratio. b.balances of the partners' capital accounts. c.ratio of the capital contributions by the partners. d.ratio of capital contributions less withdrawals by the partners. 12.In an advance plan for installment distributions of.
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Problems 15-1Unruh, Grey, and Carter are partners with capital balances of $80,000, $200,000, and $120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Grey decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by $20,000 and the value of land was increased by.
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Chapter 19 Accounting for Nongovernment Nonbusiness Organizations: Colleges and Universities, Hospitals, and Other Healthcare Organizations Multiple Choice 1.Special entities are not-for-profit organizations that are a.government owned. b.privately owned. c.publicly owned. d.either government owned or privately owned. 2.A municipality's capital projects fund is similar to a university's a.renewals and replacements fund. b.retirement of indebtedness fund. c.investment in plant fund. d.none of these. 3.Board.
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Short Answer 1.In SFAS No. 131, the FASB requires all public companies to report a variety of information for reportable segments. Define a reportable segment and identify the information to be reported for each reportable segment. 2.Publicly owned companies are usually required to file some type of quarterly (interim) report as part.
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What is the relationship (if any) between board-designated funds and nonmandatory transfers? May board designated funds ever be accounted for in the unrestricted current fund? Explain. When should an NNO record donated services in its accounting records? The donated services of volunteer workers on fundraising campaigns are usually not given ac-counting.
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15-7Agler, Bates and Colter are partners who share income in a 5:3:2 ratio. Colter, whose capital balance is $150,000, retires from the partnership. Required: Determine the amount paid to Colter under each of the following cases: (1)$50,000 is debited to Agler capital account; the bonus approach is used. (2)Goodwill of $60,000 is recorded;.
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11.In accounting for loan funds, revenue is recorded when the a.contribution is received. b.loan is made to students. c.loan is repaid by students. d.students graduate. 12.All of the following are a plant fund in colleges and universities except a.unexpended plant fund. b.funds for renewals and replacements. c.investment in plant. d.plant replacement and expansion fund. 13.Most property, plant and equipment.
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Chapter 16 Partnership Liquidation Multiple Choice 1.Which of the following statements is correct? 1.Personal creditors have first claim on partnership assets. 2.Partnership creditors have first claim on partnership assets. 3.Partnership creditors have first claim on personal assets. a.1 b.2 c.3 d.Both 2 and 3 2.The first step in the liquidation process is to a.convert noncash assets into cash. b.pay partnership creditors c.compute any net.
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Problems 18-1During 2010, the City of Lebo started a street paving project. The project is being financed by the proceeds from the issue of five-year, 6% special assessment bonds payable at a face value of $3,000,000. The bonds were issued July 1, 2010 at their par value. One-fifth of the principal.
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18-3Prepare entries, in general journal form, to record the following transactions in the proper fund(s) and/or account group(s).  Designate the fund or account group in which each entry is recorded. 1.Bond proceeds of $2,000,000 were received to be used in constructing a new City Jail.  An equal amount is contributed from.
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21.The management process includes marketing and sales. 22.Information that is capable of making a difference in a decision-making situation, by reducing uncertainty or increasing knowledge for that particular decision, has the quality of relevance. 23.Information about a customer’s credit history that is received after the decision to grant additional credit lacks completeness. 24.The.
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16-4Due to the fact that the partnership had been unprofitable for the past several years, A, B, C, and D decided to liquidate their partnership. The partners share profits and losses in the ratio of 40:30:20:10, respectively. The following balance sheet was prepared immediately before the liquidation process began: A B.
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Expenditures may be classified by function, activity, object, or organizational unit. Give an ex-ample of each classification for a municipality. Which classification is the most appropriate for external financial reporting? Distinguish between an appropriation, an en-cumbrance, an expenditure, and a disbursement. Distinguish between an expense and an expenditure. Explain and justify the difference between.
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17-4The following information regarding the fiscal year ended June 30, 2011, was drawn from the accounts and records of the Chase County general fund: Revenues and other asset inflows: Property taxes$6,000,000 Licenses and permits750,000 State grants150,000 Collection of interfund advance to other fund80,000 Proceeds from sale of equipment 40,000 Expenditures and other asset outflows: General government $2,250,000 Public safety1,130,000 Judicial.
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Short Answer Questions from the Textbook What authoritative body(s) is (are) responsible for establishing financial accounting standards for NNOs? Why do most NNOs use fund accounting? NNOs distinguish between restricted and un restricted funds. Why is this distinction important? What is the major difference in accounting for the general fund of.
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21.Steve and Robby are partners operating an electronics repair shop. For 2011, net income was $50,000. Steve and Robby have salary allowances of $90,000 and $60,000, respectively, and remaining profits and losses are shared 4:6. The division of profits would be: a.$20,000 and $30,000 b.$50,000 and $-0- c.$30,000 and $20,000 d.$25,000 and $25,000 22.Steve and Robby.
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What columns would you suggest for a subsidiary ledger account in order that it might be a subsidiary not only to the “appropriations” control account but also the “encumbrances” and the “expenditures” control accounts? Why is depreciation on fixed assets not recorded in the records of expendable fund entities? How does the.
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Short Answer Questions from the Textbook What characteristics distinguish nonbusiness organizations from profit-oriented enterprises? Define a fund as the term is applied in accounting for the activities of governmental units and other nonbusiness organizations. What is the significance of the “unreserved fundbalance” of an expendable fund entity? What are the major classifications of increases.
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6. What segmental disclosures are required, if any, for interim reports? 7. What type of disclosure is required of a firm when the major portion of its operations takes place within a single reportable segment? 8. List the types of information that must be presented for each reportable segment of.
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11.The following balance sheet information is for the partnership of Abel, Ball, and Catt: Cash$  210,000Liabilities$   510,000 Other assets1,500,000 Abel, Capital (40%)300,000 Ball, Capital (40%)480,000        Catt, Capital (20%)     420,000 $1,710,000$1,710,000 Figures shown parenthetically reflect agreed profit and loss sharing percentages. If assets on the initial balance sheet are fairly valued, Abel and Ball consent and Dent.
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11.According to the Sarbanes-Oxley Act of 2002, management must audit and report on auditors’ assertions about the organizations’ systems of internal controls. 12.According to the Sarbanes-Oxley Act’s Section 409, material changes in the organization’s financial condition must be disclosed to the public on a rapid and current basis. 13.The Sarbanes-Oxley Act’s Section.
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Chapter 15 Partnerships: Formation, Operation, and Ownership Changes Multiple Choice 1.When a partner retires and withdraws assets in excess of his book value, the remaining partners absorb the excess a.equally. b.in their profit-sharing ratio. c.based on their average capital balances. d.based on their ending capital balances. 2.In a partnership, interest on capital investment is accounted for as a(n) a.return.
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18-7The following transactions take place: 1.On January 1, the city issued 9% general obligation bonds with a face value of $4,000,000 payable in 10 years to finance the construction of city offices. Total proceeds were $4,500,000. 2.On December 20, construction was completed and occupancy taken of the city offices. The full cost.
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Chapter 17 Introduction to Fund Accounting Multiple Choice 1.Governmental units include all of the following except a.counties. b.school districts. c.industrial development districts. d.voluntary health and welfare organizations. 2.Which type of fund entities are used to account for the activities of nonbusiness organizations that are similar to those of business enterprises? a.Expendable fund entities b.Proprietary fund entities c.Budgetary fund entities d.Restricted fund entities 3.When.
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18-4           The following schedule of capital assets was prepared for Pratt County. Government ActivitiesBeg. BalanceAdditionsRetirementsEnding Balance Total Capital Assets              $850,000              250,000              (185,000)              $915,000 Less:  Accumulated              ( 500,000)              ( 50,000)              150,000              ( 400,000) Depreciation                                                                                         Net Capital Assets              $350,000              $200,000              ( 35,000)              .
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16-7           Using the information from Problem 16-6, assume the noncash assets are sold for $160,000. Determine the amount of cash to be distributed to each partner assuming all partners are personally solvent. 16-8The December 31, 2010, balance sheet of the Deng, Danielson, and Gibson partnership, along with the partners’ residual profit.
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Problems 17-1During 2011, the City of Paola was involved in the following transactions: 1.A budget consisting of estimated revenues of $1,500,000 and appropriations for expenditures of $1,550,000 was approved by the city council. 2.Statements of property tax assessments totaling $1,100,000 were mailed to property owners. Experience indicates that 2% of assessed taxes will.
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7. What is meant by dissolution and what are its causes? 8. Discuss the methods used to record changes in partnership membership. 9. Differentiate between the admission of a new partner through assignment of an interest andthrough investment in the partnership. 10.Under what two conditions will the bonus and goodwill methods.
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15-4Rice and Thome formed a partnership on January 2, 2011. Thome invested $120,000 in cash. Rice invested land valued at $30,000, which he had purchased for $20,000 in 2005. In addition, Rice possessed superior managerial skills and agreed to manage the firm. The partners agreed to the following profit and.
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