Chapter 18 – Governmental Entities: Special Funds and Government–Wide Financial Statements
P18-20 Matching Questions Involving the Statement of Revenues,
1.
C
2.
D
3.
C
4.
C
5.
B
6.
A
7.
C
8.
D
9.
A
10.
C
11.
B
12.
B
13.
D
Chapter 18 – Governmental Entities: Special Funds and Government–Wide Financial Statements
P18-21 Question on Fund Transactions [AICPA Adapted]
a.
1.
G
2.
K
3.
L
4.
L
5.
E
6.
J
7.
D
8.
A
9.
F
10.
B
b.
11.
B and J
12.
F and J
13.
C and J
14.
J
15.
B and J
16.
G and J
17.
A
18.
D
19.
I and J
20.
H and J
Chapter 18 – Governmental Entities: Special Funds and Government–Wide Financial Statements
P18-22 Major Fund Tests
Step 1: 10 percent criterion tests
Denominators for 10 percent tests are the total of each of the four items for that fund type (for
governmental and then for enterprise)
10 percent criterion tests:
Governmental fund type:
Assets
Liabilities
Revenues
Expenditures
Percent of:
$2,112,400
$951,300
$5,790,000
$5,659,800
General fund – is always a major fund
Special Revenue
1.28%(a)
2.00%
5.65%
5.80%
Capital Project – Library
21.30%*
3.99%
7.94%
7.39%
Capital Project – Arena
1.33%
1.68%
0.71%
0.99%
Debt Service
1.94%
0.00%
5.72%
5.12%
Permanent
11.65%*
0.00%
0.19%
0.32%
Enterprise fund type:
Assets
Liabilities
Revenues
Expenses
Percent of:
$3,996,000
$2,900,700
$618,000
$543,000
Enterprise – Electric
66.07%*
62.08%*
46.76%*
45.12%*
Enterprise – Water
33.93%*
37.92%*
53.24%*
54.88%*
(a) 1.28% = $27,000 / $2,112,400
* Meets the 10 percent criterion test
Chapter 18 – Governmental Entities: Special Funds and Government–Wide Financial Statements
P18-25 Determining Whether a Special Revenue Fund Is a Major Fund
Test 1: 10% criterion: Are the assets, liabilities, revenues, or expenditures of the
Totals for
Amount Reported by
Items Tested
Governmental Funds
Special Revenue Fund
1.
Assets
$50,000,000
$4,100,000 (8.2%)
(10% test failed)
2.
Liabilities
22,000,000
3,900,000 (17.7%)
(10% test met)
3.
Revenues
70,000,000
6,700,000 (9.6%)
(10% test failed)
4.
Expenditures
60,000,000
6,500,000 (10.8%)
(10% test met)
Test 2: 5% criterion: Two items met the 10% criterion test—liabilities and expenditures.
The 5% criterion test is met if at least one of the items that met the 10% criterion first test
is at least 5% of the respective amounts for all governmental and enterprise funds.
Totals for
Amount reported
Governmental and
by Special
Items Tested
Enterprise Funds
Revenue Fund
2.
Liabilities
$37,000,000
$3,900,000 (10.5%)
(5% test met)
4.
Expenditures/expenses
82,000,000
6,500,000 (7.9%)
(5% test met)
