Flashcards in Mod 21 Wrong Answers Deck (41):
GASB 34 (as Ammended) indicates that the basic financial statements include only the...3
1 government wide financial statements
2 fund statements
3 notes to the financial statements
In accordance with governmental accounting standards, depreciation expenses on infrastructure assets is not required if...
Government chooses modified approach
Under the modified approach, infrastructure assets are reported on the government wide statement of net position at...
Their cost without reduction for accumulated depreciation
On the government wide statement of activities, the cost to extend the life of the infrastructure assets is reported as...2
and certain information about infrastructure assets is disclosed
As required supplementary information
In accordance with GASB 68, the effects on the net pension liability of differences between expected and actual investment returns for a defined benefit plan is recognized in pension expense over...
A closed period of 5 years
GASB 33, indicates that imposed nonexchange revenues result from assessments by governments on...
Nongovernmental entities, including individuals other than
Assessments on non exchange transactions
Imposed non exchange revenues include...2
1 property taxes
2 fines and penalties
According to guidance provided by GASB 33, sales tax revenues are an example of...
A derived tax revenue
Derived revenues result from...
Taxes assessed by government on exchange transactions
Sales taxes and income taxes are classified as...
Derived tax revenues
Under modified accrual accounting On December 31, 2012, Sales tax advance of $10,000 should be reported as...
2) what is the journal entry
As revenue in 2012 if it is available to pay expenditures incurred
By General fund in 2012
Sales tax revenues. 10,000
Under modified accrual accounting, revenues are recognized when...
They are both measurable and available to pay expenditures
Incurred during current fiscal period
On December 31, 2013, Under modified accrual accounting, cash received from property owners of $10,000 should not be reported as revenue for 2013, if...
2) What is the journal entry?
The money cannot be used to pay for expenditures in 2013
Deferred inflow. 10,000
Encumbrances outstanding at year end represent...
Estimated amount of expenditures that could result if unperformed
Contracts in process at year end are computed
Encumbrances outstanding at year end are not...
Expenditures or liabilities
Where appropriations do not lapse at year end, encumbrances outstanding at year end should be reported as...
Reserve of general fund
Where appropriations lapse at year end, the governmental unit may...
Honor the contracts in process at year end or cancel them
If the governmental unit intends to honor contracts in progress on encumbrances they should be disclosed as...
Reserve in general fund
When closing entries are made for a governmental unit, estimated revenues control is...
Journal entry example
Credited for same amount it was debited for in the beginning
Of the year budget entry
Revenues control. 17,000,000
Estimated revenues control. 20,000,000
In closing entries of the general fund, the appropriations account would...
Would be closed in the reversal of the budget entry and has no
Effect on fund balance
Under the closing entries of the general fund, the excess of revenues and other financing sources over expenditures would be...
Credited to fund balance-unreserved
Inter fund services provided and used are treated as revenues or expenditures/expenses if they are involved with...
Organization's external to government
3 examples of inter fund services provided by organizations external to government
1 city utility providing electricity to general fund
2 internal service fund billings to departments
3 routine employer contributions from German fund to pension
The proper use of inter fund services provided and used transactions is to treat them as revenues in...
Fund providing the goods or services
The proper use of inter fund services provided and used transactions is to treat expenditures/expenses in the fund...
2) For revenues and expenditures this is done...
Receiving goods and services
2) exactly as if the transactions involved parties external to the government
Special revenue funds are used to account for the proceeds of...
Specific revenue sources (other than expendable trusts or for
Major capital projects)
That are legally restricted to expenditures for specified purposes
Levies to property owners to install sidewalks would be recorded in agency fund if...
Special assessment debt is not backed by government
Levies to property owners to install sidewalks would be recorded in debt service fund if...
Debt is backed by government
In the capital projects fund, the inflow of bond proceeds should be accounted for...
In the year received, regardless of when bond proceeds are
When the capital projects fund receives $5,000,000 of bond proceeds, they should be treated as...
Other financing source in the operating statement of the fund
GASB 42 states that impairment of a capital asset should be recognized when an event or change in circumstance causes...3
1 decline in service Utility of asset
2 decline is of large magnitude
3 is outside normal life cycle of capital asset
GASB Codification requires that hospitals be reported as...
A single enterprise fund when they are included as part of
Another government's reporting entity
Fiduciary funds (agency funds and trust funds) are used to account for assets...
Held by a governmental unit in a trustee capacity or agent for
Individuals, private orgs or other government units
The entry for Grove County to record a 1% fee on $1,000,000 and disbursement to municipalities would be.
2) what entry would be made by the General fund?
Due to various municipalities. 1,000,000
Due to grove county. 10,000
General fund cash. 990,000
Due from agency fund. Xxx
Revenue from tax collector. Service. Xxx
Agency funds have...
Only assets and liabilities as accounts
Agency funds do not record...3
Agency funds do not have...
When grove county collects property taxes levied within its boundaries and receives a 1% fee for administering these collections on municipalities located within the county it accounts using...
An agency fund
The employer pension contribution is...
An inter fund services provided and used transaction
4 types of inter fund transactions for services provided and used