1. Which of the following best describes government-wide statements? a. combined on a full accrual basis b.

combined on a modified accrual basis c. consolidated on a full accrual basis (yes it's consolidated and interfund transfers are eliminated) d. consolidated on a modified accrual basis 2. How many government-wide statements is a major city (e.g., New York, Chicago) required to prepare? a. two b. three c. four d. six 3. The net assets section of a government-wide statement of net assets would typically not have a separate category to show amounts invested in a. capital assets b. unrestricted assets c. restricted assets d. current assets 4. Which of the following funds would not be incorporated into the government-wide statements? a. enterprise funds b. permanent funds c. internal service funds d. fiduciary funds (yes fiduciary is not belong to government it's belong to trust on behalf its beneficiaries) 5. Which of the following funds is least likely to be separately reported in the governmental funds balance sheet? a. a general fund b. a nonmajor special revenue fund c. a major capital projects fund d. a major permanent fund 6. Which of the following items is least likely to be reported on Midlake Countys governmental funds balance sheet? a. the county courthouse (illustrations only reported a) b. amounts due the internal service fund c. amounts due from other governments d. amounts invested in federal securities 7. How should a fund balance amount resulting from a city councils formal action to acquire audiovisual equipment for the city high school be classified in a governmental funds balance sheet? a. nonspendable fund balance b. committed fund balance c. unassigned fund balance d. restricted fund balance 8. The year-end balance of inventory should be reported in a governmental funds statement as an asset and a. assigned fund balance b. nonspendable fund balance c. restricted fund balance d. unrestricted fund balance 9. Which of the following would not be shown as a revenue of the function public safety on Millburg Townships government-wide statement of activities? a. a grant from the federal government to acquire radar equipment b. amounts charged to local funeral homes to provide police escorts c. an appropriation from the town council to pay police officers (appropriation never been in the wide statement, should be elimiate on the closing entries) d. fees charged to the surrounding county to provide services outside of township limits 10. Which of the following would most likely be reported among restricted net assets on a citys government-wide statement of net assets? a. the balance in the citys debt service fund (debt service fund established to finance longterm debt never been in the statement) b. the amount owed to city employees for services rendered since they received their last paychecks c. the actuarial liability of the citys pension fund d. the cost, less accumulated depreciation, of the citys highway system

4 5 6 7 8 9 10

D B A B B C A

1. Internal service funds are reported as a. business-type activities in government-wide statements and governmental funds in funds statements b. proprietary funds in funds statements and governmental activities in governmentwide statements (ch.1 -14) c. business-type activities in government-wide statements and proprietary funds in funds statements d. governmental funds in funds statements and governmental activities in governmentwide statements 2. In which of the following statements would depreciation not be reported? a. internal service fund statement of revenues, expenses, and changes in fund net assets b. government-wide statement of activities c. capital projects fund statement of revenues, expenditures, and changes in fund balance (Capital assets/project are not financial resources therefore aren 't reported in the funds) d. enterprise fund statement of revenues, expenses, and changes in fund net assets 3. Which of the following is required supplementary information? a. explanation of accounting principles used in preparing the financial statements b. schedule of changes in capital assets (look up on Oregon State's CAFR) c. budgetary comparison (yes it should be in the RSI) d. ten-year trend of assessed property values 4. Which of the following is not required to be incorporated into the budgetary comparison? a. expenditures per the originally adopted budget b. expenditures per the amended budget c. actual expenditures d. variance between the actual expenditures and those per the amended budget 5. Managements discussion and analysis (MD&A) is most likely to include information on a. service efforts and accomplishments b. market values of government-owned capital assets c. the condition of infrastructure assets d. financial performance during the period covered by the financial statements 6. Which of the following is not one of the three main categories of funds? a. governmental funds b. permanent funds (logic this fund should be a part of the three main funds) c. proprietary funds d. fiduciary funds 7. Major funds include

a. all governmental funds plus proprietary funds that have fund balances greater than 10% of those of all proprietary funds combined b. the general fund, special revenue funds, capital projects funds, and debt service funds c. the general fund plus all funds having assets greater than 50% of those of the general funds d. the general fund plus other funds in which total assets, revenues, or expenditures/expenses of the fund are at least 10% of the corresponding total for the relevant fund category (governmental or enterprise) and also at least 5% of the corresponding total for all governmental and enterprise funds combined (criteria of major funds)

8. The assets and liabilities of nonmajor governmental funds would be a. aggregated and reported in the governmental funds balance sheet in a single column b. excluded from the government-wide statement of net assets c. shownonly innotes to thefinancial statements d. reported as required supplementary information (ch.2-34) 9. Which of the following would not be reported on a government-wide statement of activities? a. a transfer of cash from the general fund to the debt service fund (look up on illust. 2-6) b. costs incurred by the recreation department for electricity purchased from the cityowned electric utility c. depreciation on traffic lights d. interest on bonds issued by the electric utility department 10. Which of the following is not required to be included in a governments basic financial statements or required supplementary information? a. a reconciliation between proprietary fund financial statements and the business-type activities column of the government-wide financial statements b. a reconciliation between governmental fund financial statements and the governmental activities column of the government- wide financial statements c. a reconciliation between revenues reported on the basis of GAAP and those reported on a budgetary basis d. a comparison between actual expenditures and expenditures per the amended budget (no required in the basic financial statement but required in the RSI)

45. Prepare journal entries in the General Fund of the Brownville School District.

a. The District had outstanding encumbrances of $13,000 for band instruments from the previous year. It is the Districts policy to re-establish those encumbrances in the subsequ b. The District ordered textbooks at an estimated cost of $87,000. c. The band instruments arrived at an invoice price of $12,500 plus $225 shipping. d. Textbooks originally estimated to cost $77,000 were received with an in voice price of $76,900. The remaining portion of the order is backordered. e. A contract was signed with a CPA to provide the annual audit in the amount of $11,000.

ACC548-Governmental Accounting & Not-For- Profit Accounting

46. The following information was abstracted from the accounts of the General Fund of the City of Rome after the books had been closed for the fiscal year ended June 30, 2012.

Postclosing Trial Balance June 30, 2011

Transactions July 1, 2011 to June 30, 2012

Postclosing Trial Balance June 30, 2012

Cash Taxes Receivable Allowance for Uncollectible Taxes Accounts Payable Fund Balance: Budgetary Fund Balance-Reserve for Encumbrances Unreserved

########## $ $ 40,000.00 $ ########## $ 8,000.00 $ ########## $

Debits 1,820,000.00 1,880,000.00

Credits $ 1,867,000.00 $ 1,828,000.00

$ 653,000.00 $ 92,000.00 $ 745,000.00 $ $ 10,000.00 20,000.00

8,000.00 1,852,000.00

$ 10,000.00 $ 1,740,000.00 $ $ 70,000.00 45,000.00

########## ##########

$ 70,000.00 $ 645,000.00 $ 745,000.00

During the year, purchase orders were placed in the amount of $1,070,000. These purchase orders were filled in the amount of $1,000,000 leaving $70,000 open at year-end. There were no transfers into the General Fund,

but one transfer out. Prepare journal entries to record the budgeted and actual transactions for the fiscal year ended June 30, 2012. Include closing entries. a. Purchase orders were place in the amount of $1,070,000 1 Encumbrance Control Reserved for Encumbrance 1,070,000 1,070,000

These Purchase orders were filled in the amount of $1,000,000 leaving $70,000 open at year end. 2 Reserved for Encumbrance 1,140,000 Encumbrance Control 1,140,000 To reverse original amount of Purchase order which it filled 3 Expenditures 1,000,000 Account Payable Expenditure - purchase order were filled b. Tax Receivable debit $ 1,880,000 and credits $1,828.000 4 Tax Receivable 1,880,000 Estimate Uncollectible taxes current taxes 10,000 Revenue Control 1,870,000 Property tax were livied $ 1,880,000 and estimate uncollectible taxes $10,000 5 Cash Uncollectible taxes (Deliquent Taxes) Tax Receivable 1,820,000 8,000 1,828,000

1,000,000

Cash receipt $1,820,000 and write off uncollectible taxes $8,000 c. Account payable debits $ 1,852,000 and credits $ 1,740,000 6 Account payable Cash Payment account payable 7 Expediture 740,000 Account Payable 740,000 Other expenditure amounted $ 740,000 (1740000 - 1000000) 8 Other Financing Uses-Transfer Out Cash d. Budgetary Fund balance $70,000 9 Revenue Control Fund Balance-Unreserved Expenditures Control Encumbrances Control Other Financing Uses - Transfer Out 1,870,000 45,000 1,740,000 70,000 15,000 15,000 15,000 1,852,000 1,852,000

ks had been

es $10,000

ACC548-Governmental Accounting & Not-For- Profit Accounting

47. The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2012: 1. Beginning balances were: Cash, $150,000; Taxes Receivable, $200,000; Accounts Payable, $50,000; and Fund Balance, $300,000. 2. The budget was passed. Estimated revenues amounted to $2,000,000 and appropriations totaled $1,980,000. All expenditures are classified as General Government. 3. Property taxes were levied in the amount of $1,200,000. All of the taxes are expected to be collected before February 2013. 4. Cash receipts totaled $1,200,000 for property taxes and $740,000 from other revenue. 5. Contracts were issued for contracted services in the amount of $900,000. 6. Contracted services were performed relating to $765,000 of the contracts with invoices amounting to $759,000. 7. Other expenditures amounted to $950,000. 8. Accounts payable were paid in the amount of $1,700,000. 9. The books were closed. Required: a. Prepare journal entries for the above transactions. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund. c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation. #4-7 (a)

Journal Entry Beginning balances were: (a) Cash, $150,000; (b)Taxes Receivable, $200,000; (c) Accounts Payable, $50,000; and (4) Fund Balance, $300,000. 1. The budget was passed. Estimated revenues amounted to $2,000,000 and appropriations totaled $1,980,000. All expenditures are classified as General Govern Estimated Revenue 2,000,000 Appropriations 1,980,000 Budgetary Fund Balance 20,000 When budget recorded the appropriation is credited (removed when budgetary account are closed out) 2. Property taxes were levied in the amount of $1,200,000. All of the taxes are expected to be collected before February 2013. Tax Receivable - Current 1,200,000 Revenue Control 1,200,000 3. Cash receipts totaled $1,200,000 for property taxes and $740,000 from other revenue. Cash Tax Receivable - Current Revenue Control

1,940,000 1,200,000 740,000

4. Contracts were issued for contracted services in the amount of $900,000. Encumbrance 900,000 Reserved for Encumbrance 900,000 Encumbrance debited when contract was issued (or credited when contracts perfomed/received) 5. Contracted services were performed relating to $765,000 of the contracts with invoices amounting to $759,000. (5a) Reserved for Encumbrance 765,000 Encumbrance 765,000 When contract received/performed Encumbrance credited the orginal amount and Expenditures debited at the actual amoun of contract (invoice) performed/received. (5b) Expenditures 759,000 Account Payable 759,000 6. Other expenditures amounted to $950,000. Expenditures Account Payable

950,000 950,000

7. Accounts payable were paid in the amount of $1,700,000. Account Payable Cash 8. The books were closed (closing entries) Appropriation Control Bugetary Fund Balance Estimated Revenue Control Revenue Control Expenditures Control Fund Balance Unreserved Encumbrance Control #4-7b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.

1,700,000 1,700,000

1,980,000 20,000 2,000,000 1,940,000 1,709,000 135,000 96,000

City of Buffalo Fall General Fund Statement of Revenues, Expenditure, and Changes in Fund Balances For the Year Ended December 31, 2012 (in U.S. Dollar) Revenue Property Taxes Micellaneous Revenue Total Revenue Expenditures Services Other Expenditure Total Expenditure Excess Revenue over Expenditure Fund Balance Beginning Fund Balance Ending

1,200,000 740,000 1,940,000 759,000 950,000 1,709,000 231,000 300,000 531,000

(Date needed - Insert) (Date needed - Insert)

# 4-7c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligat

City of Buffalo Fall General Fund Balance Sheet As of December 31, 2012 (in U.S. Dollar) Assets Cash Tax Receivable Total Assets Liability and Fund Equity Liability:

390,000 200,000 590,000

Account Payable

59,000 59,000

Fund Balance: Committed for Contract Services Unassigned Total Fund Balance Total Liabilities and fund Equity

135,000 396,000 531,000 590,000

Government.

contractual obligation. General Ledger Control Account Beg. Year 2012 (4) Cash received - Property tax (4) Cash received - other revenue 390,000 Cash 150,000 1,200,000 740,000 2,090,000

,000. fied as General Government.

(8) Payment - cash - for ?

1,700,000 1,700,000

ed out)

Beg. Year 2012 (3) Property tax

Tax Receivable 200,000 (4) Cash received-r Property tax 1,200,000 1,400,000 200,000

1,200,000

1,200,000

(2) Budgetrecorded

Estfimate Revenue CONTROL 2,000,000

2,000,000 2,000,000

S (5) Issued of contracted services

Encumbrance CONTROL 900,000 (6a) Reverse contract original issued 765,000 Reverse remaining contractt perfomed 135,000 900,000 765,000 0

Expenditures CONTROL (6b) Invoice contract perfomed 759,000 (7a) other expenditure 950,000 1,709,000 1,709,000 0

Deferred Revenue

0 0

Preclosing Trial Balance City of Buffalo Fall General Fund Tial Balance As of December 31, 2012 Cash Tax Receivable Account Payable Deferred Revenue Reserved for encumbrances Fund Balance Unreserved Estimated Revenue Control Revenue Control Appropriation Control Budgetary Fund Balance Expenditure Control Encumbrances Control Debit 390,000 200,000 0 0 300,000 2,000,000 1,940,000 1,980,000 20,000 1,709,000 0 4,434,000 Credit

59,000

d by contractual obligation.

4,434,000

Closing Entries As of December 31, 2012 Appropriation Control Bugetary Fund Balance Estimated Revenue Control 1,980,000 20,000 2,000,000

Revenue Control Expenditures Control Encumbrance Control Fund Balance Unreserved

1,940,000 1,709,000 96,000 135,000

(8) Payment - cash - for ?

Account Payable 1,700,000

Beg. Year 2012 (6b) Invoice contract perfomed (7a) other expenditure 59,000

1,700,000

50,000 759,000 950,000 1,759,000

Unreserved Fund Balance Beg. Year 2012 300,000

0 300,000

300,000

Appropriation CONTROL (2) Budget recorded/appropriation

1,980,000

0 1,980,000

1,980,000

Revenue CONTROL (3) Property tax (4) Cash received - other revenue 0 1,940,000 1,200,000 740,000 1,940,000

Reserved for Encumbrance (6a) Reverse contract original issued 765,000 (5) issued of contracted services Reverse remaining contractt perfomed 135,000 765,000 0

900,000

900,000

Budetary Fund Balance (2) Budget recorded/Fund balance 0 20,000 20,000 20,000

<-------------------------------------------

Total Fund balance as of Dec. 31, 2012 = $ 531,000 (300,000 + 231,000)

<-------------------------------------------