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PRINT (WITH LETTERS) Name: _____________________________
(^) and on the Scantron as well
Exam instructions:
- Pace yourself. You might want to start with the problems that are Part II of the • Make sure you PRINT your name on the exam and the Scantron form
exam.
- If you finish the exam before the end of class, quietly come to the front of the
room and turn in your exam.
- When you finish at the end of the period – 4:15 PM, bring the exam to the front.
by 4:20 PM.This room is reserved at 4:30 PM today for set up and we need to be out of here
- Put your answers on the Scantron for all questions on the exam except for the
last problem.
- All you are allow ed to use during the exam • I am not able to answer any questions once the exam starts. • If you think a question is unclear, put a comment on the exam. • Please check that your cell phones and pagers are off. • Answer the questions in Part I with what you think is the best answer. • I would suggest that you put your answers on the exam as well.
is a pencil and a calculator and an
erasure.
- Once the exam starts you cannot leave the room until you are done, so if you
need a drink of water…….do it now.
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Score: Parts I & II _______________/90 Combined Part III ___________/10 Total: ________/ Part I: 60 points –30 questions - tw o points each
. Answer each question as indicated and put your an-
swer on the Scantron.
(^) I would also recommend that you put your answer on the exam as well.
(^) Choose
next to the question.what you think is the best answer. If you think a question is unclear, put a comment on the exam under or
Read each question slowly and carefully.
(^) Circle your answer on the exam if you
- want to record you answer there as well as on the Scantron a. government should be established inAccountability for capital assets used by departments accounted for by the governmental funds of a The appropriate governmental funds.
b. The capital projects fund
c. The governmental activities accounts at the government-wide level.
d. Both b.and c.
e. a. and b. and c. are all correct answers.
a. Which of the following would be considered a general capital asset? A vehicle purchased from general fund revenues.
b. A vehicle purchased and maintained by an enterprise fund.
c. partment.A computer purchased from revenues of an internal service fund and used by the supplies de-
d. Real estate purchased with the assets of a pension trust fund.
e. a. and b. and c. are all correct. d. is and investment and not a general capital asset.
ended JuneThe following items were included in the City of Lone Pine’s General Fund expenditures for the year
How much should be classified as capital assets in Lone Pine’s General Fund balance sheet at June 30? a. $ 0.
b. $ 9,000.
c. $16,000.
d. $25,000.
e. none of the above are correct
a. Which of the following funds of a government uses the modified accrual basis of accounting? Private-purpose trust fund.
b. Capital projects.
c. Internal service.
d. Enterprise.
a. of the bond proceeds would result in journal entries in which funds? Select the best answer.The city of Columbus issued bonds at par for the construction of a new city office building. Receipt Capital Projects Fund: Yes; Debt Service Fund: No
b. Capital Projects Fund: No; Debt Service Fund: Yes
c. Capital Projects Fund: Yes; Debt Service Fund: Yes
d. Capital Projects Fund: No; Debt Service Fund: No
e. None of these answers would be appropriate
Personal computer for the city treasurer
$9,
Furniture for the mayor’
s office
$16,
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a. With regard to depreciation of general capital assets the governmental activities accounts.Depreciation expense should be charged in the appropriate governmental funds, and reported in
b. can be recorded in the governmental activities accounts.Depreciation expense must be recorded in the governmental fund, but no depreciation expense
c. ported in the governmental activities accounts.No depreciation can be recorded in any governmental fund, but depreciation expense must be re-
d. ciation expense in the governmental activities accounts.No depreciation can be recorded in any governmental fund, nor is it permissible to record depre-
a. capital project would be reported by the capital projects fund as a (an)Interfund transfers from the General Fund to a capital projects fund to provide partial financing of a Fund balance addition.
b. Revenue.
c. Other financing source.
d. Current liability.
a. For which of the following assets can the “modified approach” be elected in lieu of depreciation? Buildings and equipment.
b. All general capital assets.
c. All capital assets.
d. Eligible infrastructure assets.
Which of the following is one of the requirements that must be met to elect
(^) not (^) to depreciate certain
a. eligible infrastructure assets? The government omits the cost of the assets from the government-wide statement of net assets.
b. The government maintains the assets in a condition level that far exceeds the prescribed level.
c. ria.The government manages the assets using an asset management system that meets specific crite-
d. The government gets permission of the Government Accounting Standards Board.
a.^ Which of the following are properly accounted for in the governmental fund accounts? Tax-supported general obligation bonds.
b. Obligations under capital leases used to finance general capital assets.
c. The long-term portion of judgments and claims.
d. All of the above.
e. None of the above
a.^ A debt service fund is a (an) Nonexpendable fund.
b. Governmental fund.
c. Fiduciary fund.
d. Proprietary fund.
a.^ Which of the following resource inflows would be recorded as a revenue of a debt service fund? Property taxes levied by the debt service fund for debt service purposes.
b. Receipt of the proceeds on a new bond issue.
c. Taxes collected by the General Fund and transferred to the debt service fund.
d. fund.Transfer of the residual equity of a capital project from a capital projects fund to the debt service
e. Both a. and c. are correct
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a.may be other entries as well, but will include):^ On the due date for bond interest, the debt service fund journal entry (or entries) will include (there A debit to Interest Payable.
b. A credit to Encumbrances.
c. A debit to Expenditures
ond Interest.
d. A debit to Interest Expense.
e. a. and b. and c. are all correct
a.^ Interest expenditures on bonds payable should be recorded in a debt service fund period.At the end of the fiscal period if the interest due date does not coincide with the end of the fiscal
b. When bonds are issued.
c. When paid.
d. When legally payable.
(^) Which of the following debt service fund accounts would
(^) not (^) be closed at the end of each fiscal year?
a. Estimated Revenues.
b. Fund Balance.
c. Revenues.
d. Expenditures—Bond Interest.
a.^ The liability for general obligation bonds should be recorded in General Fund.
b. Capital projects fund.
c. Governmental activities journal.
d. Debt service fund.
a.^ Proceeds from general obligation bonds should be recorded in the Debt service fund.
b. General obligation bond fund.
c. Permanent fund.
d. Capital projects fund.
a.^ Debt service funds are used to account for which of the following Payment of interest only on general long-term debt.
b. Payment of principal only on general long-term debt.
c. Payment of principal and interest on general long-term debt.
d. funds.Payment of principal and interest on all debt of the government, including that of enterprise
(^) Which of the following assets would
(^) not (^) be found in the balance sheet of a debt service fund?
a. Cash
b. Investments.
c. Equipment.
d. Interest Receivable.
e. All the above can be found on the balance sheet of a debt service fund.
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a.and meet its financial obligations as they become due is^ A term that describes a government’s ongoing ability and willingness to raise revenues, incur debt, Financial condition.
b. Fiscal capacity.
c. Economic condition.
d. Financial position.
FOR PART TWO CONTINUE TO USE YOUR SCANTRON TO
RECORD YOUR ANSWERS
Problem A:activities accounts.less otherwise stated the entries referred to can be to either the fund accounts or the governmentalNote the amounts used are unrealistically small, but that makes it easier to do the calculations. Un-transactions. Enter your answer on the Scantron. You can make notes on the exam if you want.multiple-choice questions – two points each – on either journal entries or amounts related to thetwo points each). Each of the three problems provides you with a short situation followed my five Part II – Three Problems (30 points – 10 points each composed of five multiple choice questions at
(^) Vannan County will be building a new community center. The current year budget allo-
- appropriate. For each of the following situations select the answer that is most appropriate.the governmental-funds side and the government-wide side (the governmental activities accounts) wheresuch as this. The transactions were recorded with dual tracking and as such, the entries are made on bothcapital projects fund) to fund the project. The city uses a capital projects fund for all major constructioncated $100 of general funds for the construction and approved a bond issue of $3,000 (to be issued by the a.^ When the bonds are issued there will be a: credit to a bonds payable account
b. credit to due from general fund account
c. credit to other financing sources account
d. a. and c. are both correct
e. a. and b. and c. are all correct
a.^ For the $100 of general funds resources: there will be a budgetary entry on the general fund accounts
b. there will be a budgetary entry on the capital projects accounts
c. both a. and b. are correct
d. neither a. nor b. are correct as they offset each other.
a.^ A contract is issued for $25 for construction site preparation. When this happens: there is a debit to encumbrances
b. there is a debit to construction in process
c. both a. and b. are correct
a.^ When the first invoice is submitted by the contractor there will a(an): entry to vouchers or contracts payable
b. entry to construction in process
c. both a. and b. are correct
d. neither a. nor b. are correct
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a.^ When the project is completed, there will be an entry to: credit the construction in process account
b. debit cash
c. debit to encumbrances
d. both a. and c. are correct
e. none of the above are correct.
Problem B
: The following transactions occurred for Sandy City during the fiscal year 2009 which has a
- ate.accounts) where appropriate. For each of the following situations select the answer that is most appropri-entries on both the governmental funds side and the government-wide side (the governmental activitiesneeded from the general fund. The transactions were recorded with dual tracking, and as such, there areis to be managed by the county’s Debt Service Fund from property tax revenues that will be transferred asat par. The bonds pay interest semi-annually with a stated annual rate of 8%. The repayment of the bondsyear end of June 30, 2009.The county’s general fund sold bonds on July 1, 2007 in the amount of $1, a.^ When the budget is recorded for Sandy City for the sale of the bonds: no entries are required on the debt service fund
b. there will be a credit to estimated revenues
c. there will be a credit to estimated other financing sources
d. a. and b. are correct
e. a. and c. are correct
a.^ When the bonds are sold, there will be 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
a.^ Since the bond repayment will be managed by the debt service fund: there will be no entry on the governmental activities accounts
b. the entry on the governmental activities is optional
c. there will be a credit to other financing sources
d. all the above are correct
a.^ When an interest payment is made there is: a debit to the reserve for encumbrances
b. a debit to interest expense
c. a debit to debt service expenditures – interest
d. both b. and c. are correct
e. a. and b. and c. are all correct
a.^ When a principal payment is made there is: a debit to the reserve for encumbrances
b. a debit to bonds payable
c. a debit to debt service expenditures – principal
d. both b. and c. are correct
e. a. and b. and c. are all correct
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Problem C:
(^) Santana County uses a tax agency fund to account for the collection of both property taxes
45.the answer that is most appropriate.year ended June 30, 2009 the following transactions occurred. For each of the following situations selectty. The county charges an administrative fee of 2% of collections to cover expenses. During the fiscaland other taxes for its own general fund and for a number of other governmental entities within the coun- a.^ The agency agrees to collect $10,000 in property taxes for the Santana School District No entry is required
b. A budget entry is required on the agency’s accounts
c. There is a debit to an accounts receivable on the agency accounts
d. Both b. and c. are correct
e. None of the above are correct
a.^ The agency agrees to collect $2,000 in estimated sales taxes for the Santana School District No entry is required
b. A budget entry is required on the agency’s accounts
c. There is a debit to an accounts receivable on the agency accounts
d. Both b. and c. are correct
e. None of the above are correct
a.district^ The agency collects $4,000 in property taxes for various governmental entities including the school There is a credit to revenue on the agency’s books
b. There is a credit to an accounts receivable account on the agency books
c. There is a credit to additions on the agency’s books
d. Both a. and b. are correct
e. Both a. and c. are correct
a.^ The agency collects $500 in sales tax for various governmental entities. There is a credit to revenue on the agency’s books
b. There is a credit to an accounts receivable account on the agency books
c. There is a credit to additions on the agency’s books
d. Both a. and b. are correct
e. Both a. and c. are correct
a.^ The agency transfer half of the agreed upon amount of property taxes for the Santana School District The payment to the school district will be for $1,000.
b. The debit for the payment will be to deductions account
c. The payment to the school district will be for $
d. Both a. and c. are correct
e. Both b. and c. are correct.
- the balance in the Fund Balance account. Note that BB stands for beginning balance. Part III: Closing Entries: Enter the following transactions on the t-accounts. When complete shoe Budgeted revenues are $1,
Budget expenditures are $
Purchase orders are issued for $
Revenue is collected in the amount of $1,
dersGood are received in the amount of $850 which is the same as the related amount of the purchase or-
Year-end entries are made
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Use this area for notes:
Estimated
Revenues
Appropriations
Encumbrances
Fund Balance
300
BB
Cash
Vouchers
Payable
Res
BB 500
200 BB
Actual Revenue
All Expenditures
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