Governmental Accounting

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GOVERNMENTAL ACCOUNTING
EXAM 3 - CHAPTERS 8 THRU 10

Select the best answer for each question and enter your answers on the answer sheet sent with the exam. Submit only the completed answer sheet, not the entire exam. Please write your name on the answer sheet.

1. General long-term debt of a governmental entity includes a) All future financial obligations. b) All future financial obligations that result from past transactions. c) All future financial obligations that result from past transactions for which the government has already received a benefit. d) All future financial obligations that are backed by the government’s general credit and revenue raising power and that result from past transactions for which the government has already received a benefit.

2. In governmental fund-type financial statements, the assets acquired under a capital lease would be reported at a) They are not reported in the fund financial statements. b) The present value of the required lease payments. c) The undiscounted total of required lease payments. d) The total of all payments required under the lease.

3. In the government-wide financial statements, the assets acquired under a capital lease would be reported at a) They are not reported in the fund financial statements. b) The present value of the required lease payments. c) The undiscounted total of required lease payments. d) The total of all payments required under the lease.

4. In the government-wide financial statements, long-term liabilities of governmental entities are generally reported at a) Face value. b) Face value plus (minus) unamortized premium (discount). c) Present value. d) Market value of the obligation.

5. Pulling County has a December 31 fiscal year-end. In November, the County borrowed $8 million from a local bank, due in

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