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Study Resources (Accounting)

77.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet:Additional information is as follows:? The investments are currently worth $13,000.? It is estimated that $32,000 of the accounts receivable are collectible.? The inventory can be sold for $74,000.? The prepaid expenses.
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42.What organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established? 43.What is a special revenue fund used to account for? 44.What is the definition of the term fund? 45.For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples. 46.What are.
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Multiple Choice Questions 1.For government-wide financial statements, what account is credited when a piece of equipment is leased on a capital lease? A.Equipment - Capital Lease B.Encumbrances - Long Term C.Encumbrances - Lease Obligations D.Capital Lease Obligation E.The lease is not recorded. 2.For fund financial statements, what account is credited when a piece of equipment is leased.
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Essay Questions 63.What is the dissolution of a partnership? 64.By what methods can a person gain admittance to a partnership? 65.What events cause the dissolution of a partnership? 66.For what events or conditions should the Articles of Partnership make provision? 67.How is accounting for a partnership different from accounting for a corporation? .
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Short Answer Questions72.Reed, Sharp, and Tucker were partners with capital account balances of $80,000, $100,000, and $70,000, respectively. They agreed to admit Upton to the partnership. Upton purchased 30% of each partner's interest, with payments directly to Reed, Sharp, and Tucker of $32,000, $40,000, and $28,000, respectively. Before the admission.
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57.What is the purpose of fund financial statements? 58.What is the purpose of government-wide financial statements? 59.The board of commissioners of the city of Jarmaine adopted a General Fund budget for the year ending June 30, 2011, which indicated revenues of $1,300,000, bond proceeds of $520,000, appropriations of $1,170,000, and operating transfers.
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Essay Questions36.What is the role of the accountant during the liquidation process?37.The partnership of Rayne, Marin, and Fulton was being liquidated by the partners. Rayne was insolvent and did not have enough assets to pay all his personal creditors. Under what conditions might Rayne's personal creditors have claimed some of.
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21.Which statement is false regarding the government-wide Statement of Net Assets? A.the purpose of the Statement of Net Assets is to report the economic resources of the government as a whole. B.assets are reported excluding capital assets. C.capital assets are reported net of depreciation. D.investments are reported at fair value rather than historical cost. E.Business-type.
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11.Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the remainder of.
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Multiple Choice Questions 1.Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the partnership. The accountant for the partnership believed that the dissolved partnership and the newly formed partnership were two separate entities. What method would the accountant have used for recording the admission.
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41.Which of the following statements is correct regarding the admission of a new partner? A.A new partner must purchase a partnership interest directly from the business. B.The right of co-ownership in the business property can be transferred to a new partner without the consent of other existing partners. C.The right to participate in.
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21.Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the remainder of.
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62.A new truck was ordered for the sanitation department at a cost of $122,200 on September 3, 2011.Required:(A.) Prepare the required journal entry in the General Fund for the Fund Financial Statements. (B.) Prepare the required journal entry for the Government-Wide Financial Statements. 63.The school system had some booklets printed by.
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52.As of January 1, 2011, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses:The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $10,000.If the noncash assets are sold for.
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21.According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports? A.The Securities Exchange Commission, the citizenry, and legislative and oversight bodies. B.The Securities Exchange Commission, legislative and oversight bodies, and investors and creditors. C.The Securities Exchange Commission, the citizenry, and.
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21.Which of the following will not result in the termination and liquidation of a partnership?1) Partners are incompatible and choose to cease operations.2) There are excessive losses that are expected to continue.3) Retirement of a partner. A.1 only B.1 and 2 only C.2 and 3 only D.3 only E.1, 2, and 3 22.What accounting transactions are.
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81.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet:Additional information is as follows:? The investments are currently worth $13,000.? It is estimated that $32,000 of the accounts receivable are collectible.? The inventory can be sold for $74,000.? The prepaid expenses.
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41.The parking garage and parking lots owned by the City of Danton reported the following balances for 2011:Required:What amount of net revenue (or expense) should be reported by the fund that was used to account for parking operations assuming the preparation of government-wide financial statements? 42.The City of Nextville operates a.
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37.What is meant by the term legally independent? 38.How is the Statement of Cash Flows for Proprietary Funds similar and dissimilar to a Statement of Cash Flows for a for-profit business? 39.The City of Wetteville has a fiscal year ending June 30. Examine the following transactions for Wetteville:(A.) On 6/1/11, Wetteville enters.
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Essay Questions41.For each of the following transactions, select the area of accounting records in which an entry will be recorded. (A) General Fund only.(B) Governmental Activities only.(C) General Fund and Governmental Activities.(D) General Fund and Debt Service Fund.(E) Capital Projects Fund and Governmental Activities.(F) Debt Service Fund and Governmental Activities.(G).
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Multiple Choice Questions 1.Which standard issued by the Governmental Accounting Standards Board in 1999 required two distinct sets of financial statements for state and local governments? A.GASB Statement No. 32. B.GASB Statement No. 33. C.GASB Statement No. 34. D.GASB Statement No. 35. E.GASB Statement No. 36. 2.Which group of governmental financial statements reports all revenues and all.
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31.When a city received a federal grant for books to be purchased for a library, the money should have been recorded in A.the Permanent Fund. B.an Expendable Trust Fund. C.a Capital Projects Fund. D.an Agency Fund. E.a Special Revenue Fund. 32.When a city holds pension monies for city employees, the monies should be recorded in A.the General.
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68.Why are the terms of the Articles of Partnership important to partners? 69.Brown and Green are forming a business as partners. If they do not create a formal written partnership agreement, what risks are they exposing themselves to? 70.What theoretical argument could be made against the recognition of goodwill when there is.
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31.A partnership began its first year of operations with the following capital balances:The Articles of Partnership stipulated that profits and losses be assigned in the following manner:Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman.Each partner was to be attributed with interest equal.
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71.Shell City transfers $100,000 from the General Fund to the Debt Service fund.Required:Prepare the required journal entries and identify the funds in which they are recorded. 72.Prepare the journal entry and identify the fund to record the purchase order of two trucks owned by Simple City for $100,000. Identify the fund.
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Essay Questions 31.What three criteria must be met to identify a governmental unit as a primary government? 32.What three criteria must be met before a governmental unit can elect to not capitalize and therefore report a work of art or historical treasure as an asset? 33.What are the three broad sections of a.
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52.When should property taxes be recognized under modified accrual accounting? 53.What are the two groups of financial statements mandated by GASB Statement No. 34? For each group, what are the names of the individual statements that must be produced? 54.What is the primary difference between monies accounted for in the general fund.
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75.The Town of Anthrop receives a $10,000 grant to make the Town Hall handicapped-accessible.Required:Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant. 76.The Town of Anthrop has recorded the receipt of a $10,000 grant to make its Town Hall handicapped-accessible..
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11.The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation:Included in Perry's capital balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000.All.
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11.Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt? A.at the end of each accounting period. B.when payment is due within one fiscal year. C.when payment is due. D.when cash is available to pay the interest. E.when the interest is incurred. 12.Which of the following funds is most likely.
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11.Historically, what was the pattern of reporting of not-for-profit organizations?(1) Patterned after for-profit accounting(2) Emphasis on separate fund types(3) Disregard for the entire entity A.1 only. B.2 only. C.1 and 2 only. D.1, 2 and 3. E.2 and 3 only. 12.Which of the following statements is required for voluntary health and welfare organizations, but not for.
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67.On January 1, 2011, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were used.Required:Record the journal entries for these transactions using the purchases method. (Disregard the encumbrance entries.) 68.On January 1, 2011, Wakefield City purchased $40,000 office supplies. During the year $35,000 of these supplies were.
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39.What criteria must be met before a voluntary health and welfare organization can recognize donated services as a means of support? 40.For a voluntary health and welfare organization, what are supporting services expenses? 41.What financial statements would normally be prepared by a voluntary health and welfare organization? 42.What are third party payors? Why.
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Short Answer Questions47.The Albert, Boynton, and Creamer partnership was in the process of liquidating its assets and going out of business. Albert, Boynton, and Creamer had capital account balances of $80,000, $120,000, and $200,000, respectively, and shared profits and losses in the ratio of 1:3:2. Equipment that had cost $90,000.
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21.Which entry would be the correct entry on the donor's books when the donor relinquishes control of an asset that it contributes to a not-for-profit organization? A.Option A B.Option B C.Option D D.Option D E.Option E 22.Which entry would be the correct entry on the donor's books when the donor retains control of an asset that.
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41.What financial schedule would be prepared for a partnership that has begun liquidation but has not yet completed the process? What is the purpose of this schedule? 42.What events or circumstances might force the termination of a partnership and liquidation of its assets? 43.For a partnership, how should liquidation gains and losses.
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77.Determine the balance in both capital accounts at the end of 2011 to the nearest dollar. 78.The ABCD Partnership has the following balance sheet at January 1, 2010, prior to the admission of new partner, Eden.Eden contributes $49,000 into the partnership for a 25% interest. The four original partners share profits.
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Multiple Choice Questions 1.Reciprocal transfers where both parties give and receive something of value are A.contributed services. B.unconditional promises to give. C.endowment transactions. D.exchange transactions. E.required contributions. 2.Which of the following types of health care organizations follow FASB Accounting Standards Codification for GAAP? A.Option A B.Option B C.Option C D.Option D E.Option E 3.Which of the following types of health care organizations recognize.
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Multiple Choice Questions 1.When a partnership is insolvent and a partner has a deficit capital balance, that partner is legally required to: A.declare personal bankruptcy. B.initiate legal proceedings against the partnership. C.contribute cash to the partnership. D.deliver a note payable to the partnership with specific payment terms. E.None of the above. The partner has no legal.
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Essay Questions34.Give several examples of voluntary health and welfare organizations. 35.What are the objectives of accounting for a not-for-profit organization? 36.What term is used by voluntary health and welfare organizations for contributions? 37.What two classifications are used for the expenses incurred by voluntary health and welfare organizations? 38.What is the main source of financial.
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