Area III: State & Local Governments

Which of the following funds of a City government uses the Accrual Basis of accounting and the Economic Resources Measurement Focus?

A City levies $1,000,000 in property taxes for the year ending Dec 31. <br/>- Collected during year: $800,000<br/>- Collected Jan 1 - Feb 28 (next year): $100,000<br/>- Collected Mar 1 - Mar 31 (next year): $50,000<br/>- Estimated uncollectible: $50,000<br/><br/>What amount of Revenue should be recognized in the General Fund (Modified Accrual)?

A City's General Fund orders a new police car for $40,000 on Nov 1. The car is delivered on Jan 15 of the next year. The City uses encumbrance accounting. What is the journal entry on Dec 31 (Year-End)?

A City receives a state grant of $100,000 that must be used for 'Public Safety Training'. At year-end, the funds have not been spent. How should this amount be classified in the General Fund Balance?

A City purchased a fire truck for $500,000 cash in the General Fund. <br/>General Fund Entry: DR Expenditures $500,000; CR Cash $500,000.<br/><br/>What adjustment is needed to convert this to the Government-Wide Statement of Net Position?

A City issues $1,000,000 in bonds. <br/>General Fund Entry: DR Cash $1M; CR Other Financing Sources-Bond Proceeds $1M.<br/><br/>What is the effect of the conversion to Government-Wide statements on the Change in Net Position?

A City's Water Enterprise Fund reports the following cash flows:<br/>- Cash received from customers: $500,000<br/>- Cash paid to suppliers: $200,000<br/>- Cash paid for interest on bonds: $50,000<br/>- Cash paid for new equipment: $100,000<br/><br/>What is the Net Cash Provided by Operating Activities?

A City adopts its budget for the year:<br/>- Estimated Revenues: $5,000,000<br/>- Appropriations: $4,800,000<br/>- Estimated Other Financing Uses (Transfer Out): $100,000<br/><br/>What is the journal entry to record the adoption of the budget?

Under GASB standards for the government-wide statement of net position, which of the following is reported as a component of Net Position?

A city government levies $2,000,000 in property taxes for the fiscal year ending December 31. $1,800,000 is collected during the year. $100,000 is collected in January of the following year. The remaining $100,000 is expected to be collected in June of the following year. Under the modified accrual basis, what amount of property tax revenue should be recognized for the fiscal year?

Which of the following reconciling items would be SUBTRACTED from the Net Change in Fund Balance of Governmental Funds to arrive at the Change in Net Position of Governmental Activities in the government-wide statement of activities?

A local government issues $5,000,000 in general obligation bonds to finance the construction of a new police station. In the Governmental Funds financial statements (Capital Projects Fund), how is the receipt of the bond proceeds reported?

Which of the following fund balance classifications represents amounts that can only be used for specific purposes pursuant to constraints imposed by external providers (creditors, grantors) or legislation?

A city's General Fund transfers $50,000 to a Debt Service Fund to pay principal and interest. How should the General Fund report this transaction?

Which of the following statements is TRUE regarding the Statement of Cash Flows for a Proprietary Fund (Enterprise Fund) under GASB?

A city government adopts a budget for its General Fund. Estimated revenues are $10,000,000 and appropriations are $9,800,000. Which of the following is the correct journal entry to record the budget?

A government places a purchase order for a new police car costing $40,000. When the car is received, the actual invoice is $42,000. Which of the following entries should be made in the General Fund upon receipt of the car?

Which of the following is a required basic financial statement for the Government-Wide reporting of a state or local government?

A city government collects taxes that are restricted by state law to be used specifically for road maintenance. Which fund should account for these resources?

A city levies $1,000,000 in property taxes for the fiscal year ending December 31. <br/>- Collected during the year: $900,000<br/>- Collected in Jan-Feb of next year: $50,000<br/>- Collected in March of next year: $30,000<br/>- Estimated uncollectible: $20,000<br/><br/>What amount of revenue should be recognized in the General Fund for the year?

A city's General Fund reports a Net Change in Fund Balance of $500,000. <br/>- Capital Outlay (purchase of vehicles): $100,000<br/>- Depreciation Expense (if full accrual): $20,000<br/>- Proceeds from Long-Term Debt: $200,000<br/>- Principal Payments on Debt: $50,000<br/><br/>What is the Change in Net Position for Governmental Activities in the Government-Wide Statement of Activities?

The General Fund transfers $50,000 to a Debt Service Fund to pay principal and interest. How should the General Fund report this transaction?

A city issues a purchase order for $10,000 of supplies. What journal entry is made in the General Fund?

In the Government-Wide Statement of Net Position, which component of net position includes capital assets net of accumulated depreciation and related debt?

For a Proprietary Fund (Enterprise Fund), which method must be used to prepare the Statement of Cash Flows?

Blue City's General Fund reported the following for the fiscal year:<br/>- Property taxes levied: $5,000,000<br/>- Collected during the year: $4,200,000<br/>- Collected within 60 days after year-end: $300,000<br/>- Collected between 61 and 90 days after year-end: $100,000<br/>- Estimated uncollectible: $50,000<br/><br/>Under the modified accrual basis of accounting, what amount of property tax revenue should be recognized?

A government's Statement of Net Position reports Net Position in three components. Which of the following is NOT one of those components?

When reconciling the governmental funds Balance Sheet to the government-wide Statement of Net Position, which of the following adjustments is typically required?

Under GASB standards, which of the following funds uses the economic resources measurement focus and the accrual basis of accounting?

A municipality issues $10,000,000 in general obligation bonds at 102 to finance the construction of a new library. The premium of $200,000 is required by law to be used for debt service. In the Capital Projects Fund, how should the bond proceeds be reported?

City of Oakwood's Water Utility Fund (an Enterprise Fund) billed customers $500,000 for services. It collected $480,000. It incurred $300,000 in operating expenses, of which $280,000 was paid. Depreciation expense was $50,000. What is the Change in Net Position for the fund?

A government issues $5,000,000 of bonds. The bond covenant requires the government to set aside $500,000 in a separate fund for future debt service. Which fund should be used?