Question 1

Using the worksheet approach,general (governmental)long term assets and long term debt have a balance of zero until the worksheet entries are made.

Accepted Answer

This is true because the worksheet approach involves creating temporary accounts to track the balances of long-term assets and long-term debt until they are recorded in the permanent accounts. Therefore, they start with a balance of zero on the worksheet until the necessary entries are made.

Question 2

Government-wide financial statements are prepared using the accrual basis of accounting

Accepted Answer

Government-wide financial statements must be prepared using the accrual basis of accounting as per the Generally Accepted Accounting Principles (GAAP). This helps provide a more accurate picture of a government's financial position, performance, and cash flows.

Question 3

GASB Statement No.34 states that general capital assets should not be reported as assets in governmental funds but should be reported in the governmental activities column of the government-wide statement of net assets.

Accepted Answer

According to GASB Statement No.34, general capital assets should not be reported as assets in governmental funds but should be reported in the governmental activities column of the government-wide statement of net assets.

Question 4

Government-wide statements are prepared using the accrual basis; therefore,enterprise fund-basis statements need to be adjusted from their original modified accrual basis.

Accepted Answer

Enterprise funds use accrual accounting so no adjustment is necessary.

Question 5

Fiduciary activities are reported in a separate column of the government-wide statements.

Accepted Answer

Fiduciary activities are not reported in the government-wide financial statements; they are reported in fiduciary fund financial statements.

Question 6

Government-wide statements are prepared using the accrual basis; therefore,governmental fund-basis statements need to be adjusted from their original modified accrual basis.

Accepted Answer

Government-wide statements are prepared using the accrual basis which is different from the modified accrual basis used in governmental fund-basis statements. Therefore, to ensure consistency and comparability, adjustments need to be made to the governmental fund-basis statements to convert them into accrual basis statements.

Question 7

Capital assets acquired through proprietary funds are reported in both the Statement of Net Assets of those funds and the government-wide Statement of Net Assets.

Accepted Answer

Capital assets acquired through proprietary funds are reported in both the Statement of Net Assets of those funds and the government-wide Statement of Net Assets as part of the overall financial reporting of the government.

Question 8

The government-wide statements include a government-wide Statement of Cash Flows.

Accepted Answer

The government-wide financial statements include the Statement of Net Position and the Statement of Activities, but not a Statement of Cash Flows.

Question 9

The difference between assets and liabilities in the government-wide statements is called Net Assets.

Accepted Answer

Net Assets is calculated by subtracting liabilities from assets in the government-wide statements.

Question 10

When preparing the government-wide statements,worksheet entries are never booked; they are only used on the worksheets.

Accepted Answer

Worksheet entries are used to prepare the government-wide statements and are not actually booked in the accounting records. They are only used as a tool to consolidate and adjust accounts for financial reporting purposes.

Question 11

Enterprise funds are reported in the business-type activities column of the government-wide statements.

Accepted Answer

Enterprise funds are proprietary funds that are used to account for services or goods provided by the government to the public for a fee, such as a water utility or a public transportation system. They are considered business-like activities and are therefore reported in the business-type activities column of the government-wide statements.

Question 12

When preparing the government-wide statements,no entry is required to record depreciation expense on general capital assets

Accepted Answer

Depreciation expense on general capital assets must be recorded in the government-wide financial statements to reflect the allocation of the cost of these assets over their useful lives.

Question 13

When preparing the government-wide statements,worksheet entries are made to add the balances of the fiduciary funds

Accepted Answer

Fiduciary funds are not included in the government-wide financial statements. They are reported separately in the fiduciary fund financial statements.

Question 14

GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting.

Accepted Answer

Proprietary funds use accrual accounting.

Question 15

Balances from enterprise fund statements,Statement of Net Assets and Statement of Revenues,Expenses,and Changes in Fund Net Assets,are reported in the business-type activities sections of government-wide statements.

Accepted Answer

Balances from enterprise fund statements, Statement of Net Assets and Statement of Revenues, Expenses, and Changes in Fund Net Assets, are reported in the business-type activities sections of government-wide statements.

Question 16

The difference between assets and liabilities in the government-wide statements is called fund balance.

Accepted Answer

The difference between assets and liabilities in the government-wide statements is called net position, not fund balance. Fund balance is a term used in the fund financial statements, which provide more detailed information about individual funds.

Question 17

GASB requires a reconciliation from governmental fund financial statements to the government-wide statements governmental-activities columns from modified accrual accounting to accrual accounting.

Accepted Answer

This statement is true. GASB requires a reconciliation from governmental fund financial statements to the government-wide statements governmental-activities columns from modified accrual accounting to accrual accounting.

Question 18

In addition to the fund basis statement,GASB Statement 34 requires government-wide statements that are prepared using the accrual basis and the current financial resources measurement focus.

Accepted Answer

The answer of In addition to the fund basis statement,GASB...

Question 19

GASB requires that general fixed assets acquired through General,special revenue or capital projects funds be included in the government-wide financial statements.

Accepted Answer

GASB 34 requires that general fixed assets acquired through General, special revenue or capital projects funds be included in the government-wide financial statements.

Question 20

When preparing the government-wide statements,a worksheet entry is required to eliminate the current period expenditures for capital outlay and record those expenditures as capital assets

Accepted Answer

This process is known as capitalization of assets and is required in government-wide financial statements to ensure that capital assets are properly reflected in the financial statements.

Quiz 8: Government-Wide Statements, Capital Assets, Long-Term Debt