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11.According to the latest GASB exposure draft, which of the following is the only governmental fund type that may report an unassigned fund balance? A.General fund B.Special revenue fund C.Capital projects fund D.Permanent fund 12.Which governmental fund includes resources that are legally restricted so that the governmental entity must maintain the principal and can use.
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51.The governing board of a hospital operated by a religious organization designated $3,000,000 of cash to be used for plant expansion. The cash was invested in stocks and bonds which earned $250,000 of dividend and interest income. The income from investments should be reported on the hospital's statement of operations.
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11.When a capital projects fund transfers a premium from the issuance of general obligation bonds to another fund, the transfer should be accounted for as which type of interfund transaction or transfer? A.As a loan. B.As an interfund transfer. C.As revenue. D.As a reimbursement. 12.Upon completion of construction and full payment of all construction costs.
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77.Akron established an internal service fund for its data processing activities on July 1, 20X8. During the fiscal year ended June 30, 20X9, the following transactions and events occurred:1) On July 1, 20X8, the city council authorized the general fund to contribute $1,000,000 to help establish the internal service fund.
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Multiple Choice Questions 1.The CRT partnership has decided to terminate operations and to liquidate the partnership assets. There are no partner loans, and all partners have positive capital balances. Gains and losses on liquidation and cash distributions to partners should be allocated as follows: A.Option A B.Option B C.Option C D.Option D 2.According to UPA 1997,.
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61.The general fund of Reston acquired computer equipment costing $70,000 during the fiscal year ended June 30, 20X9. Machinery and Equipment should be reported in Reston's General Fund Balance Sheet and government-wide Statement of Net Assets at June 30, 20X9, as follows: A.Option A B.Option B C.Option C D.Option D 62.Which of the following fiduciary.
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21.Under the modified accrual basis of accounting, revenue should be recognized when it is: A.measurable and earned. B.received in cash. C.available and earned. D.measurable and available. 22.Which of the following funds should use the accrual basis of accounting? A.Enterprise and private-purpose trust funds. B.Permanent funds and internal service funds. C.Debt service and agency funds. D.Special revenue and capital projects.
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78.Discuss major differences between a governmental entity's uses of the modified accrual method and a for-profit corporation's use of the accrual method. 79.The town of Stow was incorporated and began governmental operations on July 1, 20X8. Stow's transactions and events for the fiscal year ended June 30, 20X9, are listed below..
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Multiple Choice Questions 1.Which of the following funds use the accrual basis of accounting?I. Enterprise fund II. Agency fundIII. Internal service fund A.I only B.II only C.I and III only D.I, II, and III 2.A special revenue fund should be used in which of the following situations for a state government? A.For sales taxes which are.
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50.When Disney and Charles decided to incorporate their partnership, the trial balance was as follows:The partnership's books will be closed, and new books will be used for D & C Corporation. The following additional information is available:1. The estimated fair values of the assets follow:2. All assets and liabilities are.
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77.The adjusted trial balance for White River for the fiscal year ended June 30, 20X9, is presented below.Required:a. Prepare a statement of revenues, expenditures, and changed in fund balance for White River for the year ended June 30, 20X9. Assume there were no supplies or outstanding encumbrances at the beginning.
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55.A personal statement of financial condition dated December 31, 2008, is to be prepared for Wilhelm Holz. He provides the following information for your use in preparing the statements. All amounts are as of December 31, 2008.1) Cash on hand and in bank is $4,000.2) Investments costing $30,000 have a.
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81.A voluntary health and welfare organization reports pledges receivable on its statement of financial position at the present value of the future cash collections. How is the increase in the present value of the pledges receivable, which is due to the passage of time, reported on the voluntary health and.
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Essay Questions95.Private Not-For-Profit (NFP) Entities.Select from this list of terms to answer the following questions.A. Fair valueB. Unrestricted net assetsC. GASBD. FASBE. Statement of Revenues, Expenditures, and Changes in Fund BalanceF. Lower of cost or marketG. Accrual methodH. Statement of ActivitiesI. General fund, restricted fund, endowment fundJ. Modified accrual methodK..
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62.In the JAW partnership, Jane's capital is $100,000, Anne's is $80,000, and William's is $75,000. They share income in a 3:2:1 ratio, respectively. William is retiring from the partnership.Required:Prepare journal entries to record William's withdrawal according to each of the following independent assumptions:a. William is paid $80,000, and no goodwill.
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11.Note: This is a Kaplan CPA Review QuestionGray College, a private not-for-profit institution, received a contribution of $100,000 for faculty research. The donation was received in 20X1 and $80,000 was spent in 20X1. As a result of these transactions, Gray College should report on its 20X1 statement of activities a: A.$100,000.
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41.All restricted funds of private, not-for-profit hospitals account for resources: A.whose use is restricted by the donor. B.received and expended in the hospital's primary health care mission. C.that are only temporarily restricted. D.received or pledged by donors for use in future periods. 42.A private, not-for-profit hospital received a donation of medicine from the XYZ Pharmaceutical.
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101.Private Not-For-Profit (NFP) Entities.Select from this list of terms to answer the following questions.A. Fair valueB. Unrestricted net assetsC. GASBD. FASBE. Statement of Revenues, Expenditures, and Changes in Fund BalanceF. Lower of cost or marketG. Accrual methodH. Statement of ActivitiesI. General fund, restricted fund, endowment fundJ. Modified accrual methodK. Permanently.
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41.Note: This is a Kaplan CPA Review QuestionFixed assets of an enterprise fund should be accounted for in the A.Enterprise fund but no depreciation on the fixed assets should be recorded. B.General fixed asset account group but no depreciation on the fixed assets should be recorded. C.General fixed asset account group and depreciation.
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60.Paul and Ray sell musical instruments through their partnership. To bring in additional funds and expertise, they decide to admit Janet to the partnership. Paul's capital is $400,000, Ray's capital is $200,000, and they share income in a ratio of 7:3, respectively.RequiredRecord Janet's admission and the recording of goodwill or.
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Multiple Choice Questions 1.A not-for-profit organization received a donation temporarily restricted as to use. The donated amount was later spent in accordance with the restriction. In which category(ies) of net assets should the related revenues and expenses be recognized? A.Option A B.Option B C.Option C D.Option D 2.According to ASC 958, Not-For-Profit entities should recognize depreciation/amortization:I..
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31.Which of the following statement is true regarding permanent funds? A.Permanent funds do not have any donor restrictions when they are established. B.Permanent funds have a donor restriction on the fund principal but the income from the fund may be used to benefit the government's program. C.Permanent funds have a donor restriction on.
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54.The partnership of Rachel, Adams, and Nixon has the following trial balance on September 30, 2009:The partners share profits and losses as follows: Rachel, 50 percent; Adams, 30 percent; and Nixon, 20 percent. The partners are considering an offer of $180,000 for the accounts receivable, inventory, and plant and equipment.
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53.The partnership of Rachel, Adams, and Nixon has the following trial balance on September 30, 2009:The partners share profits and losses as follows: Rachel, 50 percent; Adams, 30 percent; and Nixon, 20 percent. The partners are considering an offer of $180,000 for the accounts receivable, inventory, and plant and equipment.
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41.Which of the following observations concerning encumbrances is NOT true? A.Their purpose is to ensure that the expenditures within a period do not exceed the budgeted appropriations. B.They provide a control system and safeguard for governmental unit administrators. C.They are a unique element of governmental accounting. D.They are recognized only at the time disbursements.
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41.Note: This is a Kaplan CPA Review QuestionThe condensed balance sheet of Adams & Gray, a partnership, at December 31, 20X1, follows:On December 31, 20X1, the fair values of the assets and liabilities were appraised at $240,000 and $20,000, respectively, by an independent appraiser. On January 2, 20X2, the partnership.
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59.The PQ partnership has the following plan for the distribution of partnership net income (loss):Required:Calculate the distribution of partnership net income (loss) for each independent situation below (for each situation, assume the average capital balance of P is $140,000 and of Q is $240,000).1. Partnership net income is $360,000.2. Partnership.
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31.Net assets restricted as to time or purpose should be classified as:I. temporarily restricted.II. permanently restricted. A.I only B.II only C.Both I and II D.Neither I nor II 32.On the statement of operations prepared for a private, not-for-profit hospital, patient service revenue earned during the year is reported net of amounts for which of the.
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78.Newport Village was recently incorporated and began financial operations on January 1, 20X8, the beginning of its fiscal year. The following transactions occurred during this first fiscal year, January 1, 20X8, to December 31, 20X8:1. The village council adopted a budget for general operations for the fiscal year ending December.
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61.The transactions listed in the following questions occurred in a private, not-for-profit hospital during 20X8. For each transaction, indicate its effect on the hospital's statement of operations for the year ended December 31, 20X8.Transaction: Endowment income was earned. The donor placed no restrictions on the investment earnings.Effect on Statement of.
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51.Listen and Hear are thinking of dissolving their partnership. Listen has a friend who told him to complete a "lump-sum" liquidation. Hear wants to complete an "installment" liquidation. They have come to you for advice. What do you recommend and Why? 52.On March 1, 20X9, the ABC partnership decides to complete.
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61.Miller and Davis, partners in a consulting business, share profits and losses in the ratio of 3:2, respectively. Prior to recording the admission of Shaw as a new partner, Miller has a capital balance of $80,000, and Davis has a capital balance of $40,000.Required:For each of the following independent cases,.
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51.Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies.
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61.The general ledger of Broadway contains the following selected account balances:Broadway wants to order additional goods and services before the fiscal year end. What is the unencumbered balance of the budget that may be expended by Broadway? A.$850,000 B.$760,000 C.$180,000 D.$130,000 62.At any time, the remaining appropriating authority available to the fund managers is equal.
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Multiple Choice Questions 1.Which organization has the authority to establish generally accepted accounting principles for state and local government entities? A.The National Council on Governmental Accounting B.The Governmental Accounting Standards Board C.The Financial Accounting Standards Board D.The Municipal Officers Finance Organization 2.Which of the following characteristics are emphasized in the accounting for state and local government.
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31.During the liquidation of the FGH partnership, a cash distribution was made to all the partners, who share profits and losses 60 percent, 20 percent, and 20 percent, respectively. Assuming that the cash distribution referred to was made properly, how much would G receive if an additional $60,000 was distributed? A.$60,000 B.$20,000 C.$17,000 D.$12,000 32.Which.
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21.Note: This is a Kaplan CPA Review QuestionLisa County issued $5,000,000 of general obligation bonds at 101 to finance a capital project. The $50,000 premium was to be used for payment of principal and interest. This transaction should be accounted for in the: A.debt service funds and the general long-term debt.
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