Accy 161 Exam 2-4.txt

Card Set Information

Author:
Anonymous
ID:
245373
Filename:
Accy 161 Exam 2-4.txt
Updated:
2013-11-06 06:51:03
Tags:
Accy 161 Exam
Folders:

Description:
Accy 161 Exam 2-4.txt
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Anonymous on FreezingBlue Flashcards. What would you like to do?


  1. Accountability for general capital asset expenditures funded by tax receipts of a government should be established in
    A. a. and b. and c. are all correct answers
    B. The governmental activities accounts at the government-wide level.
    C. Both b. and c.
    D. The capital projects fund
    E. The appropriate governmental funds.
    D. The capital projects fund
    (this multiple choice question has been scrambled)
  2. Which of the following funds of a government uses the modified accrual basis of accounting?
    A. Private-purpose trust fund.
    B. Enterprise.
    C. Capital projects.
    D. Internal service.
    C. Capital projects.
    (this multiple choice question has been scrambled)
  3. The city of Columbus issued bonds at par for the construction of a new city office building. Receipt of the bond proceeds would result in journal entries in which funds? Select the best answer.
    A. Capital Projects Fund: No; Debt Service Fund: No
    B. None of these answers would be appropriate
    C. Capital Projects Fund: Yes; Debt Service Fund: No
    D. Capital Projects Fund: No; Debt Service Fund: Yes
    E. Capital Projects Fund: Yes; Debt Service Fund: Yes
    C. Capital Projects Fund: Yes; Debt Service Fund: No
    (this multiple choice question has been scrambled)
  4. With regard to depreciation of general capital assets
    A. Depreciation expense should be charged in the appropriate governmental funds, and reported in the governmental activities accounts.
    B. Depreciation expense must be recorded in the governmental fund, but no depreciation expense can be recorded in the governmental activities accounts.
    C. No depreciation can be recorded in any governmental fund, but depreciation expense must be reported in the governmental activities accounts.
    D. No depreciation can be recorded in any governmental fund, nor is it permissible to record depreciation expense in the governmental activities accounts.
    C. No depreciation can be recorded in any governmental fund, but depreciation expense must be reported in the governmental activities accounts.
    (this multiple choice question has been scrambled)
  5. For which of the following assets can the "modified approach" be elected in lieu of depreciation?
    A. Just a. and c.
    B. Eligible infrastructure assets.
    C. a. and b. and c. are all correct.
    D. Newly acquired general capital assets.
    E. All capital assets.
    B. Eligible infrastructure assets
    (this multiple choice question has been scrambled)
  6. A debt service fund is a (an)
    A. Fiduciary fund.
    B. Nonexpendable fund.
    C. Governmental fund.
    D. Proprietary fund.
    C. Governmental fund.
    (this multiple choice question has been scrambled)
  7. Which of the following resource inflows would be recorded as a revenue of a debt service fund?
    A. Both a. and b. are correct
    B. a. and b. and c. are all correct.
    C. Property taxes levied by the debt service fund for debt service purposes.
    D. Taxes collected by the General Fund and transferred to the debt service fund
    E. Transfer of the residual equity of a capital project from a capital projects fund to the debt service fund.
    C. Property taxes levied by the debt service
    (this multiple choice question has been scrambled)
  8. Transactions related to capital assets such as acquisitions and disposals are reported in:
    A. the fund financial statements
    B. the government-wide financial statements
    C. both the government-wide and fund financial statements
    C. both the government-wide and fund financial statements
    (this multiple choice question has been scrambled)
  9. Interest expenditures on bonds payable should be recorded in a debt service fund
    A. At the end of the fiscal period if the interest due date does not coincide with the end of the fiscal period.
    B. When paid.
    C. When bonds are paid off.
    D. When legally payable.
    e. All the above are correct depending on the circumstances
    D. When legally payable.
    (this multiple choice question has been scrambled)
  10. Which of the following debt service fund accounts would not be closed at the end of each fiscal year?
    A. They would all be closed at the end of the year.
    B. Fund Balance.
    C. Estimated Revenues.
    D. Revenues.
    E. Expenditures—Bond Interest.
    B. Fund Balance.
    (this multiple choice question has been scrambled)
  11. Debt service funds are used to account for which of the following
    A. Payment of principal and interest on general long-term debt.
    B. Payment of principal and interest on all debt of the government, including that of enterprise funds.
    C. Payment of interest only on general long-term debt.
    D. Payment of principal only on general long-term debt.
    A. Payment of principal and interest on general long-term debt.
    (this multiple choice question has been scrambled)
  12. Which of the following is a true statement regarding in-substance defeasance of bonds?
    A. The government must pledge to transfer amounts to an escrow agent prior to the due date for each interest and principal payment for the debt being defeased.
    B. The government must place cash or other assets in an irrevocable trust sufficient to pay all future interest and principal payments for the debt being defeased.
    C. The government must agree to maintain sufficient cash and investment balances in its debt service fund to cover all interest and principal payments for the debt being defeased.
    d. Any of the above approaches are acceptable under GAAP.
    B. The government must place cash or other assets in an irrevocable trust sufficient to pay all future interest and principal payments for the debt being defeased.
    (this multiple choice question has been scrambled)
  13. When bonds are issued there will be
    a: a. credit to a bonds payable account on the capital projects funds accounts
    b. credit to a bonds payable account on the general funds accounts
    c. credit to other financing sources account
    d. a. and c. are both correct e. b. and c. are both correct
    c. credit to other financing sources account
  14. When the budget is recorded for City of Caitlin for the sale of the bonds
    A. a. and b. are correct
    B. there will be a credit to estimated other financing sources in the general fund
    C. no entries are required on the debt service fund
    D. a. and c. are correct
    E. there will be a credit to estimated revenues in the general fund
    C. no entries are required on the debt service fund
    (this multiple choice question has been scrambled)
  15. When the bonds were sold, there was a (an): a. debit to cash in the debt service fund accounts
    b. a debit to cash in the general fund accounts
    c. a credit to other financing uses
    d. both a. and c. are correct
    e. both b. and c. are correct
    b. a debit to cash in the general fund accounts
  16. Since the bond repayment are managed by the debt service fund, when debt repayment transaction occurs:
    A. there will be no entry on the governmental activities accounts
    B. only b. and c. are correct
    C. there will be a credit to other financing uses
    D. there will be a credit to appropriations
    e. none of the above are correct
    C. there will be a credit to other financing uses
    (this multiple choice question has been scrambled)
  17. 20. Bond anticipation notes:
    A. are noncurrent liabilities
    B. are current liabilities
    C. can be either current or noncurrent liabilities
    C. can be either current or noncurrent liabilities
    (this multiple choice question has been scrambled)
  18. Generally speaking, "interest payable" could be found in:
    A. the government-wide financial statements
    B. both a. and c. are correct
    C. the debt service fund
    D. a. and b. and c. are all correct
    E. the capital projects fund
    A. the government-wide financial statements
    (this multiple choice question has been scrambled)
  19. Capital Projects Funds (CPFs)
    Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds EXCLUDE those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments.
  20. Capital Asset
    • Assets of a long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment.
    • Note: the term does not indicate the immobility of an asset, which is the distinctive character of "fixture" Also fixed assets.
  21. General Capital Asset (GCA)
    Those capital assets of a government that are NOT RECOGNIZED by a proprietary or fiduciary fund.
  22. Agency Funds
    • Funds consisting of resources received and held by the government as an agent for others;
    • example taxes collected and held by a municipality for a school district.
    • Note: Sometimes resources held by a government for other organizations are handled through an agency fund known as a pass-through agency fund.
  23. Additions and deductions
    In trust funds the revenue and expense are called additions and deductions
  24. Basic financial statements
    Term used in GASB standards to describe required government-wide and fund financial statement.
  25. Blending
    Wanting as few discrete presentations as possible by blending component units such as the department of mosquito and vector control and the park district.
  26. Certificates of participation (COP)
    A long-term debt instrument authorized for construction of municipal facilities, typically issued by a quasi-independent authority but secured by a long-term lease with a general-purpose local government.
  27. Component units
    Separate governments, agencies, or not-for-profit corporations that, pursuant to the criteria in the GASB codification, Section 2100, are combined with other component units to constitute the reporting entity.
  28. Debt capacity
    (General definition; not from book) Ability to borrow. The amount a firm can borrow up to the point where the firm value no longer increases.
  29. Debt service fund (DSF)
    Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. Debt service funds should be used to report resources if legally mandated. Financial resources that are being accumulated for principal and interest maturing in future years also should be reported in debt service funds.
  30. Discrete presentation
    The method of reporting financial data of component units in a column(s) separate from the financial data of the primary government.
  31. Economic condition
    A composite of a government's financial health and its ability and willingness to meet its financial obligations and its commitments to provide services.
  32. Enterprise fund (EF)
    • A fund established to finance and account for the acquisition, operation, and maintenance of governmental facilities and services that are entirely or predominantly self-supporting by user charges; or for when the governing body of the government has decided periodic determination of revenues earned, expenses incurred, and/or net income is appropriate.
    • Example: Governmentally owned utilities and hospitals are ordinarily accounted for by enterprise funds.
  33. Fiduciary funds
    • Any fund held by a government in a fiduciary capacity for an external party, ordinarily as agent or trustee.
    • Example: Also called trust and agency funds.
  34. Financial condition
    The probability that a government will meet its financial obligations as they become due and its service obligations to constituencies, both currently and in the future.
  35. Financial position
    The adequacy of cash and short-term claims to cash to meet current obligations and those expected in the near future.
  36. Fiscal capacity
    A governments ongoing ability and willingness to raise revenues, incur debt, and meet its financial obligations as they become due.
  37. General capital asset (GCA)
    Those capital assets of a government that are not recognized by a proprietary or fiduciary fund.
  38. In-substance defeasance
    A transaction in which low-risk U.S. government securities are placed into an irrevocable trust for the benefit of debtholders, and the liability for the debt is removed from the accounts of the entity even though the debt has not been repaid.
  39. Internal service funds (ISF)
    • Funds established to finance and account for services and commodities furnished by a designated department or to other governments. Amounts expended by the fund are restored thereto either from other funds, so that the original fund capital is kept intact.
    • Formally called working capital fund or intragovernmental service fund.
  40. Investment trust funds
    Funds used to account for the assets, liabilities, net position, and changes in net position corresponding to the equity of the external participants.
  41. Modified approach
    An approach that allows the government to elect not to depreciate certain eligible infrastructure assets provided certain requirements are met.
  42. Pension trust funds (PTA) or Public Employee Retirement Systems (PERS)
    The organizations that collect retirement and other employee benefit contributions from government employers and employees, manage assets, and make payments to qualified retirants, beneficiaries, and disabled employees.
  43. Permanent fund (PF)
    Funds used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government's programs- that is, for the benefit of the government or its citizenry. Permanent funds do not include private-purpose trust funds, which should be used t report situations in which the government is required to use the principal or earning for the benefit of individuals, private organizations, or other governments.
  44. Popular reports
    Highly condensed financial information, including budgets, summaries, and narrative descriptions.
  45. Private-purpose trust fund
    Funds that account for contributions received under a trust agreement in which the investment income of an endowment is intended to benefit an external individual, organization, or government.
  46. Proprietary funds
    • Sometimes referred to as income determination, business-like, or commercial-type funds of a state or local government.
    • Examples: enterprise funds and internal service funds
  47. RAP - regulatory accounting principles
    • The accounting principles prescribed by deferral or state regulatory commissions for investor-owned and some governmentally owned utilities.
    • AKA: Statutory accounting principles (SAP)
  48. Required supplementary information (RSI)
    Information that is required by generally accepted principles to be included with the audited annual financial statement, usually directly following the notes to the general purpose external financial statements.
  49. Restricted assets
    Assets (usually of an enterprise fund) that may not be used for normal operating purposes because of the requirements of regulatory authorities, provisions in bond indentures, or other legal agreements, but that need not be accounted for in a separate fund.
  50. Restricted net assets
    A term used in accounting for not-for-profit organizations indicating the portion of the residual of assets and liabilities (i.e. net assets) that has been restricted in purpose or time by parties external to the organization.
  51. Revenue capacity
    (*definition from internet) In economics, the ability of groups, institutions, etc. to generate revenue. The fiscal capacity of governments depends on a variety of factors including industrial capacity, natural resource wealth and personal incomes
  52. Service capacity
    A government's ongoing ability and willingness to supply the capital and human resources needed to meet its commitments to provide services.
  53. Solvency
    the ability to meet maturing obligations as they come due
  54. Special assessment districts
    The official list showing the amount of special assessments levied against each property presumed to be benefited by an improvement or service.
  55. Tax agency fund
    Agency fund, usually maintained by a county official, to handle the collection of all property taxes within the county or other jurisdiction and the distribution of proceeds to all governments within the borders of that county or other jurisdiction.
  56. Trust funds
    • Funds consisting of resources received and held by the government as trustee, to be expended or invested in accordance with the conditions of the trust.
    • Example: Endowment, Pension trust funds, private purpose trust funds, public purpose trust funds.

What would you like to do?

Home > Flashcards > Print Preview