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Study Resources (Accounting)

Multiple Choice Questions 1.In accounting for private, not-for-profit organizations, revenues and expenses are reported at _________ amounts and most gains and losses are reported at ___________ amounts. a.net, gross b.gross, net c.gross, gross d.net, net 2.When the temporary-use restriction on a charitable donation is satisfied, which of the following is not reported? a.net assets released from restrictions.
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Multiple Choice Questions 1.When the bankruptcy court grants an order for relief: a.creditors may not seek payment for their claims directly from the debtor corporation. b.the reorganization plan was accepted by creditors having at least one-half of the total number of claims and the claims represent at least two-thirds of the total amount.
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Multiple Choice Questions 1. What basis of accounting is used by fiduciary funds? a.modified accrual b.accrual c.cash basis d.None of the above choices is correct. 2. County collections of property tax (on behalf of itself and its municipalities) would be accounted for in a(n): a.agency fund. b.general fund. c.special revenue fund. d.private-purpose trust fund. 3.In a proprietary fund statement of cash.
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11.Bankruptcy courts are federal courts separate but adjunct to: a.the US Claims Court. b.the US Tax Court. c.the US Appellate courts. d.the US Districts courts. 12.Bankruptcy court judges are appointed by: a.the President of the United States. b.the United States Attorney General. c.the Chief Justice of the Supreme court. d.the federal appeals court judges that have appellate control over.
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Exercise 9 The general fund trial balance for Ellwood City held the following balances at September 30, 2004, just before closing entries were made: Due from other funds....................................              $750 Unreserved fund balance.................................              5,000 Estimated revenues......................................                        20,000 Revenues..............................................                        18,950 Appropriations.........................................                        19,000 Expenditures - current year................................                        16,800 Expenditures - prior year.................................              2,500 Encumbrances..........................................              1,200 Operating transfers in....................................              4,000 Reserve.
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Exercise 3 The partnership of Paul, Sean, and Unser was dissolved, and by July 1, 2004, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on July 1, 2004 (with partner residual profit and loss sharing percentages) was as follows: Cash $ 20,000 Unser, capital(30%) $   80,000 Paul, capital(40%) (40,000) Sean,.
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Exercise 1 Wildwood Township entered into the following transactions during 2004: The township authorized a bond issue of $5 million par to finance construction of a fountain in the town square. The bonds were issued for $5,120,000. The premium was transferred to the fund for which the debt will be serviced. The township.
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Exercise 9 Prepare journal entries to record the following grant-related transactions of an enterprise fund. 1.  Received an operating grant in cash from the state, $5,000,000. 2.  Incurred and paid qualifying expenses on the grant program, $3,200,000. 3.  Received a federal grant to finance construction of a plant, $9,000,000 (cash received in advance). 4. .
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Multiple Choice Questions Use the following information for questions 1, 2 and 3. On June 30, 2004, the Ritz, Sally, and Tracy partnership had the following fiscal year-end balance sheet: Cash $ 20,000 Accounts payable $ 35,000 Accounts receivable 30,000 Loan from Sally 25,000 Inventory 70,000 Ritz, capital (20%) 70,000 Plant assets-net 60,000 Sally, capital(30%) 50,000 Loan to Ritz 30,000 Tracy, capital(50%) 30,000 Total assets $ 210,000 Total liab./equity $ 210,000 The percentages shown are the residual profit and loss sharing.
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Exercise 7 For each of the following events or transactions, identify the fund or funds that will be affected. 1. A state government collects sales taxes on behalf of the state and for some of its counties and municipalities. 2. A printing shop was established to handle the printing needs of a county.
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Exercise 1 Al, Ed, Jo, and Lu are partners who share profits and losses 40%, 25%, 25%, and 10%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2004. The partnership trial balance at December 31, 2003 is as follows: Debits Credits Cash $ 3,000 Accounts receivable 19,000 Inventory 25,000 Loan to Jo 5,000 Furniture 15,000 Equipment 10,000 Goodwill 12,000 Accounts payable $ 14,000 Note payable 30,000 Loan from Al 5,000 Al,.
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Exercise 3 Montgomery County incurred the following transactions during 2004: Marketable securities were donated to support the county's bike and nature trails. The donor acquired the securities for $35,000 ten years earlier; however, their current market value was $200,000. The donor specified that all income from the securities be used for the.
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Exercise 6 A cash distribution plan for the Matthews, Norell, and Reams partnership was as follows: Priority Creditors Matthews Norell Reams First $300,000 100% Next $80,000 70% 30% Next $70,000 3/7 4/7 Remainder 22% 34% 44% Required: If $550,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Matthews, Norell, and Reams? Exercise 7 A cash distribution plan for the A, B, and C partnership.
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Exercise 2 The balance sheet of the Sam, Matt, and Coe partnership on January 1, 2004 (the date of partnership dissolution) was as follows: Cash $ 4,000 Liabilities $ 8,020 Other assets 26,000 Loan from Sam 1,000 Loan to Coe 2,000 Sam, capital (20%) 1,980 Matt, capital (40%) 9,000 Coe, capital (40%) 12,000 Total assets $ 32,000 Total liab./equity $ 32,000 In January, other assets with a book value of $16,000 were sold for $10,000 in.
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Multiple Choice Questions 1.If a government is the recipient of a pass-through grant, but has no administrative or financial involvement in the program, the pass-through grant is accounted for in a(n): a.trust fund. b.agency fund. c.general fund. d.enterprise fund. 2.A nonrecurring and nonroutine transfer of equity between funds, such as an initial capital contribution from.
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Exercise 9 The balance sheet of the Tom, Dick, and Joe partnership on October 1, 2004 (the date of partnership dissolution) was as follows: Cash $ 3,000 Liabilities $ 9,000 Other assets 33,000 Loan from Tom 1,000 Loan to Dick 4,000 Tom, capital (20%) 3,000 Dick, capital (30%) 6,000 Joe, capital (50%) 21,000 Total assets $ 40,000 Total liab./equity $ 40,000 In October, other assets with a book value of $15,000 were sold for $17,000 in.
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Exercise 3 The following information was taken from the accounts and records of the Salmon Foundation, a private, not-for-profit organization. All balances are as of December 31, 2003, unless otherwise noted. Unrestricted Support - Contributions.........................              $5,000,000 Unrestricted Support - Membership Dues......................                   600,000 Unrestricted Revenues - Investment Income....................                     96,000 Temporarily restricted gain on sale.
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Exercise 7 The following information regarding the fiscal year ended September 30, 2004, was drawn from the accounts and records of the Washington County general fund: Revenues and other asset inflows: Taxes............................................              $12,000,000 Licenses and permits..........................................              2,500,000 Intergovernmental grants.......................................                1,000,000 Proceeds of short-term note issuances.............................                1,200,000 Collection of interfund advance to other fund.......................                   800,000 Receipt.
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11.A type of fund that may be either expendable or nonexpendable is a(n): a.agency fund. b.enterprise fund. c.internal service fund. d.private-purpose trust fund. 12.Which of the following does not appear on the statement of cash  flows as an investing activity?   a.Receipts or payments from the disposal or acquisition of capital assets. b.Receipts or payments regarding.
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Multiple Choice Questions 1.The proceeds from a bond issuance for the building of a new public school should be recorded in the ______________ fund at the time the bonds are sold.  The fund balance increase is classified as ______________. a.capital projects, revenues b.general, revenues c.general, other financing sources d.capital projects, other financing sources 2.When a capital.
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Exercise 9 River Corporation is being liquidated under Chapter 7 of the Bankruptcy Act. The trustee has determined that the unsecured claims will receive $.50 on the dollar. Denon Corporation holds a $100,000 mortgage note receivable from River that is secured by marketable securities with a $75,000 book value and an.
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Exercise 2 The Meals for the Homeless is a private, not-for-profit organization that provides free meals for the destitute in a large city. Record the following transactions in the accounts of Meals for the Homeless. 1.  Unrestricted cash gifts that were received last year, but designated for use in the current year,.
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Exercise 8 The four cash flow activities required in a government proprietary fund's statement of cash flows are listed below and assigned a letter code. A) Cash flows from operating activities B) Cash flows from noncapital financing activities C) Cash flows from capital and related financing activities D) Cash flows from investing activities Required: Use the.
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Exercise 6 Prepare journal entries in an Internal Service Fund to record each of the following transactions. Purchased equipment on September 1 by paying $50,000 down and borrowing $200,000 on a 6%, 2-year note.  Billed General Fund departments $1,240,000 for services provided to those departments. Billings to the Enterprise Fund totaled $330,000..
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Exercise 4 Itek Corporation owes Ames Finance Company $660,000 plus $43,000 of accrued interest. Itek has a cash flow shortage and arranges for an equity settlement of the loan with Ames by issuing 55,000 shares of its $10.00 par value common stock to Ames on April 1, 2004. Itek common stock.
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Exercise 5 Bob, Carl, Ted, and Al are partners who share profits and losses 30%, 20%, 35%, and 15%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2004. The partnership trial balance at December 31, 2003 is as follows: Debits Credits Cash $ 3,000 Accounts receivable 10,000 Inventory 25,000 Loan to Carl 4,000 Furniture 15,000 Equipment 18,000 Goodwill 10,000 Accounts payable $ 12,000 Note payable 30,000 Loan from Ted 6,000 Bob,.
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Exercise 3 Record the following transactions in the Brown State Hospital enterprise fund: Gross patient services revenues: $10,000,000. Included in the above revenues are: charity services, $200,000; contractual adjustments, $700,000; and estimated uncollectible amounts, $350,000. Purchased equipment by issuing a 5-year note for $80,000. Received cash donations restricted for a capital building addition program, $2,200,000. Incurred.
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Exercise 2 Tuftym Company is in bankruptcy and is being liquidated  under the provisions of Chapter 7 of the bankruptcy code. The trustee has converted all assets into $60,000 cash and has prepared the following list of approved claims: Accounts payable, unsecured $ 15,000 Trustee’s fees and other costs of liquidation 8,000 Mortgage payable, secured by property.
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Exercise 5 List the financial statements and/or schedules required to be presented for each of the following funds and entities as well as the required basis of accounting. 1.Debt Service Fund 2.Permanent Fund 3.Pension Trust Fund 4.Internal Service Fund Exercise 6 List the financial statements and/or schedules required to be presented for each of the following funds.
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21) In CIM systems, computers control management-designed parts of the manufacturing process. 22) Flexible manufacturing systems can be reprogrammed to produce entirely different products. 23) The process management approach aids in the management and improvement of a company's processes in order to increase customer satisfaction while ignoring the company's cost structure. 24) ERPs.
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11.A partnership in liquidation has converted all assets into cash and paid all liabilities. If the partners’ capital accounts have credit balances, how are the final cash payments distributed? a.according to the balances in the partners’ capital accounts b.according to the partners’ residual profit and loss sharing ratios c.according to the partners’ profit.
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Exercise 5 Prepare journal entries to record the following grant-related transactions for a municipality special revenue fund. 1.  Awarded an operating grant from the state, $5,000,000 (cash will be received after qualified expenditures are made). 2.  Incurred and paid qualifying expenditures on the grant program, $3,200,000. 3.  Received a federal grant to finance.
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31) Operational transaction cycles have traditionally grouped activities of a business into six common operational processes. 32) Transactions are used by auditors to verify account balances and internal controls. 33) The internal audit function and the accounting functions should not be segregated in order to increase a company's internal control. 34) The director.
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Exercise 1 Prepare journal entries to record the following transactions in the enterprise fund for a state university. Tuition and fees assessed total $8,000,000 of which 80% was collected by year-end; scholarships were granted for $300,000 and $200,000 was estimated to be uncollectible. Revenues collected from sales and services to the university.
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11.The unmatured liability for general long-term debt is reported in the: a.long-term debt records. b.debt service fund. c.Both of the above report the data. d.None of the above report the data. 12.Capital improvement costs incurred for general government special assessments projects requires recognition in the: a.special revenue fund. b.general fund. c.capital projects fund. d.permanent fund. 13.The general fixed assets records.
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Exercise 8 Parkland General is a private, not-for-profit hospital. Record the appropriate journal entries for each of the following hospital transactions. Gross patient services charges totaled $9,000,000. Included in the above revenues are: charity services, $330,000; contractual adjustments, $800,000; and courtesy allowances, $28,000. Received marketable securities valued at $225,000 for the purchase of.
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Exercise 5 Based upon the provided 2003 annual cash flow information, prepare a cash flow statement for the Red River Municipal Golf Course enterprise fund. Green fees received                                $500,000 Membership fees received                             30,000 League outing fees received                         120,000 Interest revenue received                             2,000 Cash received from short-term note payable           75,000 Payments to employees                               350,000 Payments to suppliers                               198,000 Cash paid.
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11.A gift-in-kind, for which there is little or no discretion on disposition, should be accounted by a not-for-profit entity as: a.a contribution b.an exchange transaction c.an agency transaction d.a conditional promise to give 12.Not-for-profit organizations report unconditional promises to give that will be collected in future years at: a.the present value of the amounts expected to.
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11.A comprehensive annual financial report has the following three  major sections: a.introductory, financial, and management's discussion and analysis. b.introductory, financial, and statistical. c.transmittal, financial, and statistical. d.transmittal, financial, and management's discussion and analysis. 12. Which of the following is accounted for in governmental funds? a.general government short-term liabilities b.general government long-term liabilities c.Both of the above are included. d.None.
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Exercise 7 James Corporation is being liquidated under Chapter 7 of the Bankruptcy Act. The trustee has determined that the unsecured claims will receive $.30 on the dollar. Crown Corporation holds a $70,000 mortgage note receivable from James that is secured by equipment with a $35,000 book value and a $14,000.
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Exercise 1 Prepare journal entries to record the following transactions for a private, not-for-profit university. Tuition and fees assessed total $10,000,000, 85% of which was collected by year-end; tuition scholarships were granted for $800,000, and $400,000 was expected to be uncollectible. Revenues collected from sales and services by the university bookstore were.
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Exercise 10 The following information was taken from the accounts and records of the Plutarch Foundation, a private, not-for-profit organization. All balances are as of June 30, 2004, unless otherwise noted. Unrestricted Support - Contributions.........................              $3,000,000 Unrestricted Support - Membership Dues......................                   700,000 Unrestricted Revenues - Investment Income....................                     76,000 Temporarily restricted gain on sale.
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Exercise 9 A private, not-for-profit university received donations of $1,000,000 in 2003 that were restricted to capital improvements of the football stadium. The university spent $1,300,000 on capital improvements for the stadium in 2003 and recorded depreciation of $102,000.  In 2003, an alumnus contributed a $5,000,000 endowment for football scholarships with.
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11) Some organizations that use computers to process transactional data must have an information system function. 12) The operations function allows specialization in areas such as operating systems and software and communications technology. 13) Cloud computing describes the increasing trend for data processing capabilities to be provided as a service via the.
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Exercise 6 The Mental Health Clinic is a private, not-for-profit organization that provides free mental health services for the uninsured. Record each of the following transactions in the accounts of the Mental Health Clinic. Unrestricted cash gifts that were received last year, but designated for use in the current year, totaled $10,000. Unrestricted.
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Exercise 4 A private, not-for-profit university received donations of $4,000,000 in 2003 that were restricted to certain research projects on gene splicing. The university incurred $2,300,000 of expenses on this research in 2003. In 2003, an alumnus contributed a $2,000,000 endowment for genetic research with all endowment income restricted for that.
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Exercise 8 The unadjusted trial balance for the general fund of the City of Allensville at June 30, 2004 is as follows: Debits Accounts receivable...........................................              $40,000 Cash.......................................................                75,000 Due from agency fund.........................................                25,000 Encumbrances.........................................  60,000 Estimated revenues............................................              975,000 Expenditures.........................................750,000 Taxes receivable..............................................              250,000 Credits Allowance for doubtful accounts.................................              5,000 Allowance for uncollectible taxes................................                50,000 Appropriations...............................................              785,000 Due to utility fund............................................                40,000 Unreserved.
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Exercise 1 Macco Corporation is liquidating under Chapter 7 of the Bankruptcy Act. The accounts of Macco at the  time of filing are summarized as follows: Book Value Estimated Realizable Value Cash $ 10,000 $ 10,000 Accounts receivable-net 60,000 50,000 Inventory 110,000 70,000 Equipment-net 70,000 70,000 Land 20,000 40,000 Building-net 200,000 150,000 Goodwill 42,000 $ 512,000 Accounts payable $ 120,000 Wages and salaries 30,000 Contributions due to pension plan 20,000 Taxes payable 80,000 Accrued interest payable (includes $10,000 from the mortgage payable and $2,000 from the note payable) 12,000 Note.
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Exercise 1 a.Borrowed $10,000 by issuing a three-month note. b.Paid $2,000 for equipment. c.Services for $250 were billed and collected. d.Issued general obligation bonds, par value of $5,000, at 101 (101% of par value) to finance construction of a building. e.Incurred and paid construction costs of $2,500 on the building. Required: Analyze the above transactions by using.
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