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Study Resources (Accounting)

64.List the seven fund financial statements that are required as part of the basic financial statements by GASB standards. What measurement focus and basis of accounting should be used in preparing each of these statements? 65.Explain the nature of the three major activity categories of a state or local government:.
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114.The transactions described in the following questions occurred in a voluntary health and welfare organization during the year ended December 31, 20X8. For each transaction, indicate its effect(s) on the organization's statement of activities prepared for the year ended December 31, 20X8. List all effects of transactions affecting more than.
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60.Following are some of the county’s governmental funds.The county has asked you to determine is any of the funds listed should be classified as major funds based on the GASB size criteria.Clearly indicate which fund(s) you believe should be classified as major and provide support for your choice(s). General FundSpecial Revenue.
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True / False Questions 1.Special purpose governments generally provide a wider range of services to their residents than do general purpose governments. 2.Examples of general purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide. 3.The Governmental Accounting Standards Board (GASB) is the body authorized.
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38.Which of the following is a fiduciary fund? A.Investment trust fund. B.Special revenue fund. C.Debt service fund. D.Enterprise fund. 39.Which of the following funds would be most appropriate when accounting for an activity that provides goods or services to the public for a fee that is intended to make the.
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39.Wilbur Corporation is to be liquidated under Chapter 7 of the Bankruptcy Code. The balance sheet on December 31, 20X8, is as follows:The following additional information is available:1. Marketable securities consist of 2,000 shares of Bristol Inc. common stock. The market value per share of the stock is $8. The.
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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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63.Explain the difference between measurement focus and basis of accounting. Also, explain the difference between the economic resources measurement focus and the current financial resources measurement focus as well as the difference between the accrual and modified accrual bases of accounting. Which funds and government-wide activities use each focus and.
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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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48.The measurement focus and basis of accounting that are most unlike those used by business entities are those used by A.Governmental funds. B.Fiduciary funds. C.Proprietary funds. D.Contribution funds. 49.Which of the following governmental funds must be reported as a major fund? A.The General Fund. B.Any fund with total assets, liabilities,.
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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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Short Answer Questions 58.The following are categories of funds described in Chapter 2: A. Governmental funds B. Proprietary funds C. Fiduciary funds For each of the following descriptive phrases, indicate the type of fund from the list above that best matches by placing the appropriate letter in the blank space next to the.
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21._____ have liens, or security interests, on specific assets. A.Secured creditors B.Creditors with priority C.Unsecured creditors D.Assured creditors 22.As defined by the Bankruptcy Code, creditors with priority:I. have collateral claim against specific assets.II. are unsecured creditors who have priority over other unsecured creditors.III. are the first to be paid from any proceeds available to unsecured.
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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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40.Briefly explain the three classes of creditors specified in the Bankruptcy Code. 41.A trustee has been appointed for Smith Company, which is being liquidated under Chapter 7 of the Bankruptcy Code. The following transactions occurred after the assets were transferred to the trustee:1. Credit sales by the trustee were $100,000. Cost.
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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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Essay Questions 61.List the basic financial statements required by GASB standards and briefly explain their purposes. 62."The primary purpose of an accounting system for a state or a local government is to make it possible for financial statements to demonstrate compliance with finance-related legal and contractual provisions." Explain why you believe.
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Multiple Choice Questions 1.What is defined as a condition in which a company is unable to meet debts as the debts mature? A.Deficit B.Liability C.Insolvency D.Credit squeeze 2.Under a composition agreement, A.creditors agree to accept less than the face amount of their claims. B.debtors in financial difficulty transfer assets "without recourse." C.a creditors' committee is initiated with a plan.
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Essay Questions37.To obtain cash quickly, DebCo. sold $750,000 of its receivables to Finco., with recourse. As the accountant for DebCo., what issues do you need to resolve in order to determine the appropriate accounting treatment? 38.What are the conditions necessary for using fresh start reporting in reorganization? 20-1 .
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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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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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Multiple Choice Questions 24.Which of the following best describes the recommended format for the government-wide statement of activities?  A. Program revenues minus expenses minus other revenues and expenses equals change in net position. B. Program revenues plus general revenues minus expenses equals change in net position. C. Program revenues minus expenses.
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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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121.Following are four independent transactions or events that relate to a voluntary health and welfare organization:1. Cash disbursement of $45,000 was made from the general fund's unrestricted assets for the purchase of new equipment for the organization.2. The organization receives an unrestricted cash gift of $80,000 from a donor.3. Common.
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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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Multiple Choice Questions 28.Which of the following is true regarding financial reporting for internal service funds? A.Internal service funds are reported in the governmental fund financial statements. B.Internal service funds are aggregated and reported as a major fund in the proprietary fund financial statements. C.Internal service funds are generally reported in.
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11.Interperiod equity refers to the concept that current-year revenues are sufficient to pay for services provided that year, so that future taxpayers will not be required to assume the burden for services previously provided. 12.The minimum requirements for general purpose external financial reporting are (1) management's discussion and analysis (MD&A), (2).
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108.The CFO of a "Not-for-Profit" hospital is making a presentation at your college. The presentation is for Business and Health-Science majors. During the presentation the CFO mentions assets being reported "above the line." On the way out your roommate a health-science major asks, you an accounting major, to explain what.
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36.A comprehensive annual financial report (CAFR) prepared in conformity with GASB recommendations should include which of the following sections? A.Letter of transmittal, management's discussion and analysis (MD&A), and financial. B.Introductory, financial, and statistical. C.Introductory, MD&A, and financial. D.Letter of transmittal, financial, and supplementary. 37.Which of the following would be included in a properly prepared comprehensive.
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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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21.The GASB concept statements indicate that an asset that is going to be converted to cash should be reported at a remeasured amount at the financial statement date. 22.Proprietary funds primarily provide services to the general public for a fee. 23.A permanent endowment is an example of a nonspendable fund.
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Multiple Choice Questions 26.The Governmental Accounting Standards Board is assigned responsibility for setting accounting and financial reporting standards for A.Governments such as federal agencies, states, cities, counties, villages, and townships. B.State and local government entities and governmentally-related units and agencies, such as utilities, authorities, hospitals, and colleges and universities. C.Not-for-profit organizations. D.State and local governments.
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True / False Questions 1.Fund-based financial statements are intended to provide detailed financial information about the governmental, proprietary, and fiduciary activities of the primary government.  2.Government-wide financial statements include financial information for all governmental, proprietary, and fiduciary funds.  3.The government-wide statement of net position displays the net expense or revenue for.
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11.The maximum sets of fund financial statements a government would present are three. 12.When revenues are legally restricted by external resource providers or committed by enabling legislation for particular operating purposes, a private purpose trust fund is created. 13.A debt service fund is used to account for financial resources segregated.
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11.All encumbrances must be closed at year-end.  12.An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.  13.GASB standards require that all state and local governments present a statement of revenues, expenditures, and changes in fund balances-budget and actual.
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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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True / False Questions 1.Governmental activities are to be classified as governmental or business-type. 2.Governmental funds are identical to governmental activities, proprietary funds are identical to business-type activities, and fiduciary funds are identical to fiduciary activities of a government. 3.Only those governmental and proprietary funds that meet the GASB size criteria.
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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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31.What is the general form of the trustee's opening entry, accepting the assets of the debtor company? A.Option A B.Option B C.Option C D.Option D 32.Which monthly report shows the results of the trustee's fiduciary actions beginning at the point the trustee accepts the debtor's assets? A.Statement of affairs B.Statement of realization and liquidation C.Statement of financial position D.Statement.
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11.Chapter 11 of the Bankruptcy Code provides for:I. Reorganization.II. Liquidation. A.I only B.II only C.Both I and II D.Neither I nor II 12.Which of the following could be true of the proceedings under Chapter 11 of the Bankruptcy Code? A.Always administered by the bankruptcy courts. B.The debtor's assets are sold and its liabilities extinguished. C.The company does not.
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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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