Chapter 10: Government-Wide Financial Statements
Chapter 10: Government-Wide Financial Statements
Multiple Choice
1. To what extent should fund or fund type data be displayed on the face of government-wide financial statements? a. Information should be displayed for the government as a whole, but individual funds or fund types should not be displayed. b. Information should be displayed by fund type, with a total for the government as a whole. c. Information should be displayed by major fund, with a total for the government as a whole. d. Information should be displayed by major fund, except for fiduciary funds.
Answer: a
2. Which measurement focus should be used in government-wide financial statements? a. the …show more content…
In accordance with a bond agreement, assets are being accumulated in a sinking fund to pay bonds due in 20 years. The assets are reported as Investments. What other information should be reported about that item on the face of the government-wide financial statements? a. It should be reported as part of net assets invested in capital assets, net of related debt. b. It should be reported as part of net assets restricted for debt service. c. It should be reported as part of net assets reserved for debt service. d. It should be reported as part of fund balance reserved for debt service.
Answer: b
7. A city health department charges fees for copies of birth certificates provided to its citizens. How should those fees be reported in the government-wide statement of activities? a. as a separate item of revenue in the revenue section b. as a direct reduction of the expenses of the health department c. as an element of program revenues, which reduce gross expenses of the health department d. as a special item
Answer: …show more content…
How much should the city report in its December 31, 2004, government-wide financial statements as net assets invested in capital assets, net of related debt? a. $70,000 b. $60,000 c. $58,333 d. $10,000
Answer: b
21. Just before the close of its fiscal year, a city government issues $2 million of bonds to finance the acquisition of capital assets. However, no part of the debt is repaid by year-end and no part of the debt is used to purchase capital assets. What adjusting entry is needed to prepare the city's government-wide financial statements from its fund-level financial statements? a. No adjusting entry is needed. b. Available for capital assets 2,000,000 Bonds payable 2,000,000 c. Invested in capital assets, net of related debt 2,000,000 Bonds payable 2,000,000 d. Proceeds from bond issue 2,000,000 Bonds payable 2,000,000
Answer:
Multiple Choice
1. To what extent should fund or fund type data be displayed on the face of government-wide financial statements? a. Information should be displayed for the government as a whole, but individual funds or fund types should not be displayed. b. Information should be displayed by fund type, with a total for the government as a whole. c. Information should be displayed by major fund, with a total for the government as a whole. d. Information should be displayed by major fund, except for fiduciary funds.
Answer: a
2. Which measurement focus should be used in government-wide financial statements? a. the …show more content…
In accordance with a bond agreement, assets are being accumulated in a sinking fund to pay bonds due in 20 years. The assets are reported as Investments. What other information should be reported about that item on the face of the government-wide financial statements? a. It should be reported as part of net assets invested in capital assets, net of related debt. b. It should be reported as part of net assets restricted for debt service. c. It should be reported as part of net assets reserved for debt service. d. It should be reported as part of fund balance reserved for debt service.
Answer: b
7. A city health department charges fees for copies of birth certificates provided to its citizens. How should those fees be reported in the government-wide statement of activities? a. as a separate item of revenue in the revenue section b. as a direct reduction of the expenses of the health department c. as an element of program revenues, which reduce gross expenses of the health department d. as a special item
Answer: …show more content…
How much should the city report in its December 31, 2004, government-wide financial statements as net assets invested in capital assets, net of related debt? a. $70,000 b. $60,000 c. $58,333 d. $10,000
Answer: b
21. Just before the close of its fiscal year, a city government issues $2 million of bonds to finance the acquisition of capital assets. However, no part of the debt is repaid by year-end and no part of the debt is used to purchase capital assets. What adjusting entry is needed to prepare the city's government-wide financial statements from its fund-level financial statements? a. No adjusting entry is needed. b. Available for capital assets 2,000,000 Bonds payable 2,000,000 c. Invested in capital assets, net of related debt 2,000,000 Bonds payable 2,000,000 d. Proceeds from bond issue 2,000,000 Bonds payable 2,000,000
Answer: