Exam 1 Quest and Answers
Acccounting 248:51
Spring 2014
Midterm Exam April 7, 2014
Instructor: Dan Cunningham
Email: dan@dancunningham.org
Phone/Text: 518.431.9796
Instructions: Please record your answers on the answer page provided. Your answers must be submitted on or before 11:59PM on April 12. Please upload your answer sheet to the appropriate file on
ANGEL.
1. The City of Newport issued $1,500,000 of general obligation refunding bonds at a 2% premium. Bond issuance costs of $15,000 were incurred. The proceeds, net of the premium and bond issue costs, are being used to refund the outstanding bonds. Debt
Service Fund Expenditures will be debited for
A. $15,000.
B. $30,000.
C. $1,455,000.
D. $1,470,000.
2. Which of the following statements is true concerning accounting and financial reporting practices related to capital asset acquisitions?
A. Routine capital purchases such as vehicles and equipment often may be financed and accounted for in a General Fund.
B. Most capital lease transactions related to governmental funds are accounted for in either the General Fund or a Debt Service Fund.
C. Capital Project Funds may be used only for acquisition or construction of major capital facilities.
D. Most capital projects last only for on fiscal year.
3. A government was billed $3,000,000 during the year on its capital project, of which
$2,700,000 was paid. The total contracted cost is $5,200,000. The government does not plan to pay the $300,000 balance currently owed to the contractor until the project has been completed and approved. The government should report Capital Projects
Fund expenditures for the current year equal to
A. $2,700,000.
B. $3,000,000.
C. $4,900,000.
D. $5,200,000.
4. Construction in Progress would be reported as an asset in
A. A Capital Projects Fund.
B. The General Fund.
C. The General Capital Asset accounts.
D. Construction in Project is not an asset in governmental accounting.
Acccounting 248:51
Spring 2014
Midterm Exam
Spring 2014
Midterm Exam April 7, 2014
Instructor: Dan Cunningham
Email: dan@dancunningham.org
Phone/Text: 518.431.9796
Instructions: Please record your answers on the answer page provided. Your answers must be submitted on or before 11:59PM on April 12. Please upload your answer sheet to the appropriate file on
ANGEL.
1. The City of Newport issued $1,500,000 of general obligation refunding bonds at a 2% premium. Bond issuance costs of $15,000 were incurred. The proceeds, net of the premium and bond issue costs, are being used to refund the outstanding bonds. Debt
Service Fund Expenditures will be debited for
A. $15,000.
B. $30,000.
C. $1,455,000.
D. $1,470,000.
2. Which of the following statements is true concerning accounting and financial reporting practices related to capital asset acquisitions?
A. Routine capital purchases such as vehicles and equipment often may be financed and accounted for in a General Fund.
B. Most capital lease transactions related to governmental funds are accounted for in either the General Fund or a Debt Service Fund.
C. Capital Project Funds may be used only for acquisition or construction of major capital facilities.
D. Most capital projects last only for on fiscal year.
3. A government was billed $3,000,000 during the year on its capital project, of which
$2,700,000 was paid. The total contracted cost is $5,200,000. The government does not plan to pay the $300,000 balance currently owed to the contractor until the project has been completed and approved. The government should report Capital Projects
Fund expenditures for the current year equal to
A. $2,700,000.
B. $3,000,000.
C. $4,900,000.
D. $5,200,000.
4. Construction in Progress would be reported as an asset in
A. A Capital Projects Fund.
B. The General Fund.
C. The General Capital Asset accounts.
D. Construction in Project is not an asset in governmental accounting.
Acccounting 248:51
Spring 2014
Midterm Exam