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Study Resources (Accounting)

Multiple Choice Questions 1. Which of the following phrases is frequently used to refer to estate or trust accounting? a. Non-profit accounting. b. Testamentary accounting. c. Fiduciary accounting. d. All of the above phrases are used to refer to estate or trust accounting. 2. In reference to accounting for trusts or estates, which of the following statements is correct? a. Estates are subject to.
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LO3 11. Which of the following approaches is used to recognize governmental fund revenues? a. The gross amounts earned approach. b. The gross amounts levied approach. c. The net of estimated uncollectible accounts approach. d. The net of related expenditures approach. LO3 12. At any point in time, a government will be able to spend an amount equal to a. appropriations minus expenditures. b. appropriations minus expenditures.
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LO1 Exercise 5 Prepare journal entries in an Internal Service Fund of Prat County to record each of the following transactions. Purchased equipment on September 1 by paying $25,000 down and borrowing $100,000 on a 6%, 2-year note.  Billed General Fund departments $620,000 for services provided to those departments. Billings to the Enterprise.
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LO1 Exercise 1 The City of Sharpesburg entered the following transactions during 2006: 1. The city authorized a bond issue of $2,500,000 par to finance construction of a fountain in the city square. The bonds were issued for $2,560,000. The premium was transferred to the fund for which the debt will be serviced. 2..
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Multiple Choice Questions LO1 1. What basis of accounting is used by proprietary funds? a. Modified accrual accounting. b. Accrual accounting. c. Cash basis accounting. d. Fair value accounting. LO1 2. Enterprise funds are accounted for in a manner similar to a. internal service funds. b. construction project funds. c. agency funds. d. private-purpose trust funds. LO1 3. Payments in lieu of taxes from an enterprise fund should be reported as a(n) a. operating expense. b. operating transfer out. c. nonoperating.
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LO4 Exercise 4 The Rehabilitation Clinic is a private, not-for-profit organization that provides free rehabilitation health services for the uninsured. The following transactions occurred for the Rehabilitation Clinic. Unrestricted cash gifts that were received last year, but designated for use in the current year, totaled $40,000. Unrestricted pledges of $400,000 were received. Two percent.
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Exercise Ten Rufus Holt died on May 1, 2009. He left his entire estate, valued at $6,100,000 to his sole surviving family member, his daughter, Ethel. Prior to any distribution of assets, Rufus’s estate reflected the following details: Funeral expenses............................              $10,200 Executor’s fees ............................              4,500 Estate liabilities............................              145,000 Final Medical expenses.......................              22,100 Required: a.Calculate the federal tax.
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LO1 Exercise 4 The general fund trial balance for Overland City held the following balances at September 30, 2006, 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 for encumbrances 1,200 Reserve for encumbrances - prior year 2,500 Required Prepare the necessary closing entries. .
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LO1 Exercise 2 1. The city issued $6 million of refunding bonds at par. 2. The city transferred $3,700,000 from its General Fund to its Debt Service Fund to provide the additional resources needed to defease the bonds in substance. 3. The city paid $9,700,000 into an irrevocable trust established at the First Seaside.
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LO6 Exercise 10 A private, not-for-profit university received donations of $500,000 in 2005 that were restricted to capital improvements of the football stadium. The university spent $650,000 on capital improvements for the stadium in 2005 and recorded depreciation of $51,000.  In 2005, an alumnus contributed a $2,500,000 endowment for football scholarships with.
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LO1 Exercise 7 Prepare journal entries to record the following grant-related transactions of an enterprise fund. 1.  Received an operating grant in cash from the state, $2,500,000. 2.  Incurred and paid qualifying expenses on the grant program, $1,600,000. 3.  Received a federal grant to finance construction of a plant, $4,500,000 (cash received in advance). 4. .
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Multiple Choice Questions LO1 1. A not-for-profit entity has all of the following characteristics except that it will a. operate for purposes other than to provide goods or service at a profit. b. have a positive fund balance. c. not possess ownership interests like a corporation. d. receive significant contributions from providers who do not expect returns. LO2 2. A governmental not-for-profit entity has.
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LO1 Exercise 3 Prepare journal entries to record the following grant-related transactions for a municipality special revenue fund. 1.  Awarded an operating grant from the state, $2,500,000 (cash will be received after qualified expenditures are made). 2.  Incurred and paid qualifying expenditures on the grant program, $1,600,000. 3.  Received a federal grant to finance.
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LO6 Exercise 9 The following information is available about the operations for a private, not-for-profit university. The university sold $9,000,000 of 8% bonds to finance the construction of a new building for the business school. The bonds were sold on January 1 and pay interest on December 31 of each year. The bonds.
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LO1 Exercise 4 Journalize the following utility transactions in the Brown County enterprise fund: Billings to external customers $1,600,000, billings to Brown County    governmental funds $130,000. Collected refundable deposits from new utility customers $10,000. Collected 95% of all billings by fiscal year-end. Refunded $4,000 in deposits to former utility customers. Unbilled services to outside customers at year-end.
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LO2 Exercise 8 Based upon the provided 2006 annual cash flow information, prepare a cash flow statement for the Blue Valley Aquatic Center 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 in.
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LO2 Exercise 9 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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11. Under the Uniform Probate Code, the personal representative must publish for what time period a notice in a newspaper of general circulation in the county in which the decedent resided? a. For one week. b. For two weeks. c. For three weeks. d. For five weeks. 12. If estate assets are insufficient to pay all claims in full, under the.
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LO1 Exercise 2 Spencer College assessed $1,350,000 in student tuition for the fall semester. The college estimates bad debts will be 2% of the gross assessed tuition. Spencer is located in Montana where a scholarship program provides for tuition waivers totaling $120,000. Estimated uncollectible tuition is $13,500. Determine the amount of revenue to.
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Exercise Seven Use the information from Exercise Six above. Assume that on February 28, 2009, Norma finalized the estate and transferred the balance of the estate assets to Dixon’s nephews, Chuck Fuller and Shelly Williams. Each received one-half of the residual estate. Required: 1.   Prepare the closing entries on February 28, 2009. 2.Prepare the.
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LO5 Exercise 5 Little Town Hospital is a private, not-for-profit hospital.  The following information is available about the operations. Gross patient services charges totaled $4,000,000. Included in the above revenues are: charity services, $125,000; contractual adjustments, $350,000; courtesy allowances, $10,000; and estimated uncollectible amounts, $150,000. Premium fees receipts were $125,000. Purchased $40,000 of hospital supplies on.
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LO4 Exercise 10 The unadjusted trial balance for the general fund of the City of Pegasus at June 30, 2006 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 fund balance 30,000 Reserve for encumbrances 60,000 Revenues 990,000 Taxes received in advance 15,000 Vouchers payable 200,000 Supplies on hand at June 30, 2006.
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LO3 11. Which of the following does not appear on the statement of cash flows as an operating activity? a. Receipts from interfund reimbursements. b. Payments for taxes and in lieu of taxes. c. Payments for interest. d. Fines for late service payments. LO3 12. Which of the following is not a fiduciary fund? a. A permanent fund. b. A proprietary fund. c. A trust fund. d. An agency fund. LO3 13. What basis.
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LO5 Exercise 6 Remote Reconstructive is a private, not-for-profit hospital.  The following information is available about the operations. Gross patient services charges totaled $4,500,000. Included in the above revenues are: charity services, $165,000; contractual adjustments, $400,000; and courtesy allowances, $14,000. Received marketable securities valued at $115,000 for the purchase of new diagnostic equipment. The marketable.
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LO1 Exercise 6 Journalize the following utility transactions in the Starkey County enterprise fund: The utility sold $4,000,000 of 6.5% revenue bonds at 98 on July 1 (an interest payment date). The bond proceeds are to be used for new plant construction and the issue will mature in 20 years. Depreciation for the year-ended.
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LO3 Exercise 2 The following information was taken from the accounts and records of the Archive Foundation, a private, not-for-profit organization. All balances are as of June 30, 2006, 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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LO6 Exercise 8 A private, not-for-profit university received donations of $2,000,000 in 2005 that were restricted to certain research projects on zero gravity material science. The university incurred $1,150,000 of expenses on this research in 2005. In 2005, an alumnus contributed a $1,000,000 endowment for genetic research with all endowment income restricted.
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LO1 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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LO3 Exercise 1 The following information was taken from the accounts and records of the Astronomy Foundation, a private, not-for-profit organization. All balances are as of December 31, 2005, 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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LO4 11. Voluntary health and welfare organizations classify fund-raising costs as a. costs of services sold. b. program services. c. functional expenses. d. supporting services. LO4 12. Voluntary health and welfare organizations a. may report fund accounts as supplementary according to FASB Statement No. 117 specifications. b. are required to report unrestricted and restricted net assets according to fund accounting principles. c. must report fund accounts if management.
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LO3 Exercise 8 Address the following situations separately. 1.For the budgetary year beginning July 1, 2006, Center Township expected the following cash flow resources: Property taxes, licenses, and fees........................$3,000,000 Proceeds of debt issue................................1,000,000 Interfund transfers from debt service........................750,000 In the budgetary entry, what amount did Center Township record for estimated revenues? 2. During the fiscal year ended June.
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LO1 Exercise 5 The general fund trial balance for Owens Creek City held the following balances at June 30, 2006, just before closing entries were made: Due from other funds $ 2,700 Unreserved fund balance 51,000 Estimated revenues 208,000 Revenues 198,900 Appropriations 196,500 Expenditures - current year 193,800 Expenditures - prior year 4,500 Encumbrances 3,200 Operating transfers in 6,000 Reserve for encumbrances 3,200 Reserve for encumbrances - prior year 4,500 Required Prepare the necessary closing entries. .
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LO4 Exercise 9 The following information regarding the fiscal year ended September 30, 2006, was drawn from the accounts and records of the Jasper 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 of net assets of terminated fund 1,800,000 Expenditures and other.
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LO2 Exercise 10 Based upon the provided 2006 annual cash flow information, prepare a cash flow statement for the Downtown University Motor Pool internal service fund. Cash received from customers                       $850,000 Cash received general fund (noncapital loan)         20,000 Interest revenue received                             1,000 Cash received from short-term note payable           40,000 Payments to employees                               450,000 Payments to suppliers                               250,000 Cash paid.
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LO1 Exercise 3 Record the following transactions in the Porter 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 and.
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11) Which of the following is true about Canadian governmental reporting standards? A) PSAB standards are recommendations only. B) PSAB standards are rules that must be followed. C) PSAB standards must be applied to all provincial public utilities. D) PSAB standards were developed by the OSC. 12) A private company that is closely held and.
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Multiple Choice Questions LO1 1. When a capital lease is used to acquire general fixed assets, the governmental fund acquiring the fixed assets records a(n) __________________at the _____________________. a. expenditure, lease payment cost. b. fixed asset, lease payment cost. c. expenditure, present value of the minimum lease payments. d. fixed asset, present value of the minimum lease payments. LO1 2. The estimated revenues control.
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Exercise 5 Byron Ratliff has been appointed to serve as the executor of the estate of Ms. Juanita Davis, who passed away at the age of 104 on April 5, 2009. Ms. Davis’s assets consisted of the following: Asset            Book Value Fair Value Cash $20,000 $20,000 Money market accounts 210,000 210,000 Cooper Incorporated common stock 52,000 205,530 Porsche 911 Carrera 120,000 78,000 Condominium in Jackson,.
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LO4 Exercise 3 Food for the Golden Years is a private, not-for-profit organization that provides free meals for the post-65 age group in the suburbs of a large city. Record the following transactions in the accounts of Food for the Golden Years. The following transactions affected the accounts of Food for the.
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Exercise Three Bill Barker is the executor for the estate of Ruth Johnson. Ruth owned a home worth $200,000, with a remaining mortgage amount of $80,000, personal effects worth $8,000, an investment portfolio worth $150,000 on the date of death, and approximately $7,500 in cash in various accounts. The home was.
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LO1&2 Exercise 7 Johnson County incurred the following transactions during 2006: 1. The county authorized a new general obligation bond issue of $5 million par to purchase an office building with a contract price of $4,975,000. The bonds were issued for $4,960,000. 2. The county levied real property taxes of $10,000,000. Sixty per.
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Exercise Eight You are the trustee for the Houdini/Max Trust from the previous Exercise. The following transactions occurred during 2009. Houdini and Max are going to live with Norma Carrell, the trustee and devoted cat lover. February 18 The Houdini/Max Trust was established at First State Bank by depositing Dixon Cooper’s $200,000.
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LO6 Exercise 7 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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1) What do business enterprises have that NFPs do not have? A) Specified products or services B) Identifiable customers or clients C) Employees D) Boards of directors 2) Which of the following statements about the adoption of IFRS is true? A) Many European countries adopted IFRS prior to 2011. B) Canada adopted IFRS in 2012. C) All European.
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LO1&2 Exercise 6 El Dorado County incurred the following transactions during 2006: 1. 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.
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