module 1 homework AC 395

Which of the following statements is true regarding the basic financial statements of a state or local government?

-Separate columns should be provided in the government-wide financial statements for governmental activities and business-type activities.-Governmental fund and proprietary fund financial statements should provide a separate column for each major fund.-Aggregate information about all nonmajor governmental funds or nonmajor enterprise funds should be reported in a single column of the governmental fund or proprietary fund financial statements. ALL OF THESE ARE CORRECT

Which of the following is an example of classification by object of expense?

Debt service.

Which of the following best describes the recommended format for the government-wide statement of activities?

Expenses minus program revenues equals net (expense) revenue. Net (expense) revenue plus general revenues equals change in net position.

Which of the following fund(s) will generally be the only fund(s) that can report a positive unassigned fund balance?

General Fund

For each of the following entities, identify if the entity would be governed by GASB standards by placing a "GFASB standar by placing an "F" or FASAB standards by placing an "FB" (Hint: Search the website of the entity listed if you are unsure.)

Homeland Security: FB American Institute of Certified Public Accountants: F The Department of the Interior: FB American Diabetes Association: F New York City: G Mayo Clinic: F The county, parish , or borough in which you live: G Bay Area Rapid Transit (BART operated in the San Francisco Bay area): G The Metropolitan Museum of Art, New York City: F

What are the components that are included in the minimum requirements for general purpose external financial reporting?

MD&A, government-wide financial , statements, fund financial statements, notes to the financial statements, and RSI.

When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation?

Property used by or charitable organizations, Property exempted from taxation by the government, Property owned by governments ALL OF THESE ARE CORRECT

Which of the following amounts that are identified at the end of the fiscal year would be classified as an assigned fund balance?

Resources the city manager has set aside for a major street repair

Under the modified accrual basis of accounting:

Revenues are recognized when current financial resources become measurable and available to pay current-period obligations.

Which of the following financial statements is not a basic financial statement under FASAB standards?

Statement of cash flows.

The basic financial statements of a not-for-profit include all of the following except:

Statement of changes in functional expenses.

Which of the following statements regarding primary sources of accounting and financial reporting standards is false?

The FASB sets standards for all business and not for profit entities.

Which of the following best identifies when an encumbrance is recorded?

When good or services are ordered.

Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000. Which of the following is the correct journal entry to record the budget ?

a. estimated revenues 1,100,000 budgetary fund balance 100,000 Appropriations 1,000,000

If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded?

c. Budgetary Fund Balance 428,000 Estimated Revenue 428,000