Question 1

The minimum requirements for general purpose external financial reporting does not include

Accepted Answer

Fund financial statements, management's discussion and analysis, and required supplementary information are all required minimum components of general purpose external financial reporting according to generally accepted accounting principles (GAAP). However, a transmittal letter is not required, although it may be included to provide context or additional information about the financial statements.

Question 2

In the government-wide statement of net position, interfund receivables and payables

Accepted Answer

B

Question 3

In the statement of activities, depreciation is reported on

Accepted Answer

Depreciation is reported on all depreciable capital assets of the government except for infrastructure assets that are being maintained using the modified approach, where such assets are not depreciated as their maintenance is ensured to keep them in essentially perpetual good condition.

Question 4

Below is information on total assets for various funds of the City of Dublin all amounts are in thousands of dollars.
 $\begin{array}{|l|r|}
\hline{\text { Fund }} &{\text { Assets }} \
\hline \text { General } & \$ 1,300 \
\hline \text { Federal Grants Special Revenue } & 500 \
\hline \text { State Grants Special Revenue } & 200 \\hline \text { City Hall Capital Projects } & 900 \
\hline \text { Debt Service } & 700 \
\hline \text { Water and Sewer Enterprise } & 8,000 \
\hline \text { Swimming Pool Enterprise } & 1,000 \
\hline \text { Fleet Management Internal Service } & 10,800 \
\hline \text { Employee Pension Fund } & 6,500\
\hline
\end{array}$ Requirement: Prepare a schedule computing the threshold for asset amounts that should be used to determine which funds must be reported as major. Identify which funds are major funds.

Accepted Answer

The answer of Below is information on total assets for...

Question 5

The government-wide statement of net position would report the following component of net position except

Accepted Answer

The government-wide statement of net position includes unrestricted net position, restricted net position, and net investment in capital assets as major components of the net position. However, "designated net position" is not a recognized component of the statement of net position. It is possible that some governments may create additional categories of net position for their internal reporting purposes, but it is not a standard component that would be reported in the government-wide financial statements.

Question 6

In the proprietary fund statements, a government should include a separate column for

Accepted Answer

In the proprietary fund statements, a government should include a separate column for each major Enterprise Fund, nonmajor Enterprise Funds in the aggregate, Enterprise Funds total, and Internal Service Funds in the aggregate. This is because all of these funds are considered proprietary funds, which means they are used to account for operations that are similar to those of a business. By including separate columns for each of these funds, the government can provide readers with a more detailed picture of the financial performance of each fund, as well as the overall financial performance of the proprietary funds as a whole. Additionally, including separate columns for each major fund and the aggregates helps to provide a clearer picture of the financial health of the entirety of the government's operations.

Question 7

The following information was drawn from the records of Wise County all amounts are in thousands of dollars.
  $\begin{array}{ll}
 \text { Local gas tax restricted for street maintenance}&\$13,000\
  \text { State grant restricted for police training.}&4,000\
  \text { Federal grant for new library.}&1,222\
  \text { Gain on sale of general capital assets}&300\
  \text { License and permit fees}&70\
  \text { Interest collected on investments}&108\
  \text { Fines and forfeitures.}&500\
  \text { Contributions to permanent fund which supports education}&635\
  \text { Shared state revenues restricted to public health.}&1,100
\end{array}$ Requirement: Prepare schedules computing amounts to be reported as Charges for Services, Operating Grants and Contributions, Capital Grants and Contributions, and General Revenues.

Accepted Answer

The answer of The following information was drawn from the...

Question 8

In the government-wide statements, business-type activities include

Accepted Answer

Business-type activities in government-wide statements primarily include only Enterprise Fund operations. These are activities that the government operates in a manner similar to private businesses, where the costs of providing services to the public on a continuing basis are financed or recovered primarily through user charges.

Question 9

The fund financial statements included in the basic financial statements include separate balance sheets or statements of net position for all of the following except

Accepted Answer

The fund financial statements included in the basic financial statements include separate balance sheets or statements of net position for governmental funds, proprietary funds, and fiduciary funds. Discretely presented component units are reported in separate financial statements outside of the basic financial statements, and therefore their financial statements are not included in the fund financial statements within the basic financial statements.

Question 10

Which financial statement may be presented as required supplementary information?

Accepted Answer

The General Fund and major Special Revenue Funds statement of revenues, expenditures, and changes in fund balances-budget and actual may be presented as required supplementary information. This information is typically used to provide budgetary comparison information to aid in evaluating budgetary compliance.

Question 11

For general purpose external financial reporting, discretely presented component unit information

Accepted Answer

Discretely presented component unit information is included in the government-wide statements only, as it allows for a distinction between the primary government and its component units while still presenting a comprehensive financial picture.

Question 12

In the fund financial statements, a government should include a separate column for all of the following except

Accepted Answer

In the fund financial statements, governments are required to report major funds individually, with separate columns for each major fund. This includes major Enterprise Funds, Capital Projects Funds, and Permanent Funds. However, Internal Service Funds are typically not reported in separate columns unless they are deemed to be major, which is less common. The emphasis is usually on funds that are externally focused, such as Enterprise and Capital Projects Funds, or those with significant permanent endowments, like Permanent Funds.

Question 13

Governmental activities in the government-wide financial statements would potentially report the following equity classifications except

Accepted Answer

The equity classifications reported in the government-wide financial statements include restricted net position, unrestricted net position, and net investment in capital assets. However, restricted fund balance is a classification used in the fund financial statements, not the government-wide financial statements.

Question 14

Which of the following classifications is not used in the government-wide statement of activities?

Accepted Answer

The answer of Which of the following classifications is not...

Question 15

Which governmental fund must always be reported in a separate column in the governmental fund financial statements?

Accepted Answer

The General Fund must always be reported in a separate column in the governmental fund financial statements because it is the chief operating fund of a government, accounting for all financial resources except those required to be accounted for in another fund.

Question 16

A budgetary comparison schedule is required for

Accepted Answer

The answer of A budgetary comparison schedule is required for
...

Question 17

Which of the following may be reported in the government-wide statements and the fund financial statements?

Accepted Answer

The answer of Which of the following may be reported...

Question 18

When preparing external financial statements that are in accordance with generally accepted accounting principles, the minimum financial report will include

Accepted Answer

When preparing external financial statements that are in accordance with generally accepted accounting principles, the minimum financial report will include basic financial statements, management's discussion and analysis, and other required supplementary information. Therefore, option A is the correct answer. Option B is wrong because not all organizations are required to produce a comprehensive annual financial report. Option C and D are incorrect because they do not include all of the required components.

Question 19

The City of Raymond reports the following fund information all amounts are in thousands of dollars:
  $\begin{array}{ll}
\text {All governmental funds' fund balance}&\$13,000\
 \text {Restricted fund balances:}\
 \text {Special Revenue Fund}&1,200\
 \text {Debt Service Fund}&1,700\
 \text {General capital assets}&10,800\
 \text {Accumulated depreciation on capital assets}&4,100\
 \text {General long-term liabilities:}\
 \text {Bonds payable for capital assets}&5,700\
 \text {Liability for compensated absences}&3,200\
 \text {Internal Service Fund serving governmental activities}&\
 \text {Net position}&3,000\
 \text {Capital assets net of accumulated depreciation}&1,700\
 \text {Liability, capital related}&500
\end{array}$ Requirement: Prepare the net position section for governmental activities for the statement of net position for the City of Raymond for the year ended December 31, 20X9.

Accepted Answer

The answer of The City of Raymond reports the following...

Question 20

The City of Floyd reports the following fund information all amounts are in thousands of dollars:
  $\begin{array}{ll}
\text {All governmental funds' fund balance}&\$13,000\
 \text {Restricted fund balances:}\
 \text {Special Revenue Fund}&1,200\
 \text {Capital Projects Fund unspent bond proceeds}&900\
 \text {Debt Service Fund}&1,700\
 \text {General capital assets}&10,800\
 \text {Accumulated depreciation on capital assets}&4,100\
 \text {General long-term liabilities:}\
 \text {Bonds payable for capital assets}&5,700\
 \text {Liability for compensated absences}&3,200\
 \text {Internal Service Fund serving governmental activities}&\
 \text {Net position}&3,000\
 \text {Capital assets net of accumulated depreciation}&1,700\
 \text {Liability, capital related}&500
\end{array}$ Requirement: Prepare the net position section for governmental activities for the statement of net position for the City of Floyd for the year ended December 31, 20X9.

Accepted Answer

The answer of The City of Floyd reports the following...

Quiz 13: Financial Reportingthe Basic Financial Statements and Required Supplementary Information