1. For government-wide financial statements, what account is credited when
a piece of equipment is leased on a capital lease?
2. For fund financial statements, what account is credited when a piece of
equipment is leased on a capital lease?
3. Jones College, a public institution of higher education, must prepare
financial statements
4. For the purpose of government-wide financial statements, the cost of
cleaning up a government-owned landfill and closing the landfill
5. A method of depreciation for infrastructure assets that allows the
expensing of all maintenance costs each year instead of computing depreciation
is called
6. Drye Township has received a donation of a rare painting worth
$1,000,000. For Drye’s government-wide financial statements, three criteria must
be met before Drye can opt not to recognize the painting as an asset. Which of
the following is
not
one of the three criteria?
(1.) The painting is held for public exhibition, education, or research in
furtherance of public service, rather than financial gain.
(2.) The painting is scheduled to be sold immediately at auction.
(3.) The painting is protected, kept unencumbered, cared for, and preserved.
7. GASB Codification Section 2200.106-107 makes which of the following
statements regarding Management’s Discussion and Analysis?
8. Which one of the following is a criterion for identifying a primary
government?
9. A local government’s basic financial statements would include a statement
of cash flows for all
10. According to the GASB (
Governmental Accounting Standards Board
),
which one of the following is
not
a criterion for determining whether a
government is legally separate?
11. Which of the following is not a criterion of a capital lease?
12. A five-year lease is signed by the City of Wachovia for equipment with a
seven-year life. The asset will be returned to the lessor at the end of the lease.
The present value of the lease is $20,000, and annual payments of $5,411.41 are
payable beginning on the date the lease is signed. The interest portion of the
second payment is $1,604.75. The equipment is to be used in City Hall and was
purchased from appropriated funds of the General Fund.
What should be recorded in the General Fund on the date the lease is signed?
13. A five-year lease is signed by the City of Wachovia for equipment with a
seven-year life. The asset will be returned to the lessor at the end of the lease.
The present value of the lease is $20,000, and annual payments of $5,411.41 are
payable beginning on the date the lease is signed. The interest portion of the
second payment is $1,604.75. The equipment is to be used in City Hall and was
purchased from appropriated funds of the General Fund.
What should be recorded in the General Fund one year from the date the lease is
signed?
14. A five-year lease is signed by the City of Wachovia for equipment with a
seven-year life. The asset will be returned to the lessor at the end of the lease.
The present value of the lease is $20,000, and annual payments of $5,411.41 are
payable beginning on the date the lease is signed. The interest portion of the
second payment is $1,604.75. The equipment is to be used in City Hall and was
purchased from appropriated funds of the General Fund.
What entry should be made for the government-wide financial statements on the
date the lease is signed?
15. A five-year lease is signed by the City of Wachovia for equipment with a
seven-year life. The asset will be returned to the lessor at the end of the lease.
The present value of the lease is $20,000, and annual payments of $5,411.41 are
payable beginning on the date the lease is signed. The interest portion of the
second payment is $1,604.75. The equipment is to be used in City Hall and was
purchased from appropriated funds of the General Fund.
What entry should be made for the government-wide financial statements one
year from the date the lease is signed?
16. Which of the following is a section of the general purpose external
financial statements of a state or local government?
(1) Management’s discussion and analysis (MD&A).
(2) Required supplementary information (other than MD&A).
(3.) Basic financial statements and notes to financial statements.
17. Which of the following must be presented in the MD&A of a government?
18. What are the three broad sections of a state or local government’s CAFR?
19. Which of the following is a financial statement of a proprietary fund?
20. Which criteria must be met to be considered a special purpose
government?
(1.) Have a separately elected governing body
(2.) Be legally independent
(3.) Be fiscally independent
21. Which statement is
false
regarding the government-wide Statement of Net
Assets?
22. Which item is not included on the government-wide Statement of
Activities?
23. Which statement is
false
regarding the Balance Sheet for Fund Financial
Statements?
24. The city operates a public pool where each person is assessed a $2
entrance fee. Which fund is most appropriate to record these revenues?
25. Which statement is
false
regarding the Statement of Revenues,
Expenditures, and Changes in Fund Balance when it is included with
government-wide financial statements?