Gov & NFP Exam 4 Questions and Answers
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A village levies property taxes in the amount of $4,290,000 for the fiscal year ended June 30,
2019. It collects $4,200,000 during the year. Regarding the remaining $90,000 of delinquent
receivables, it expects to collect $60,000 in July and August of 2019 and another $20,000 after
August 2019 but before March 2020. It expects to write off $10,000 as uncollectible. How much
should the village recognize as property tax revenue in its government-wide statement of
activities for the fiscal year ended June 30, 2019?
a. $4,290,000
b. $4,280,000
c. $4,260,000
d. $4,200,000 $4,280,000
A city issues $500,000 of 10-year general obligation bonds on April 1, 2019. It is required to
make a principal payment of $50,000 on April 1 of each year, starting with April 1, 2020, with
interest of 4 percent per annum paid on the unpaid principal. How much interest expenditure and
expense should the city recognize in its governmental fund and government-wide operating
statements for the calendar year ending December 31, 2019?
Governmental Fund Operating Statement Government-Wide Operating Statement
,A$15,000 $15,000
B00
C 0 15,0000
D 0 15,000 D
Governmental Fund Operating Statement: 0
Government-Wide Operating Statement: 15,000
Significant differences exist between fund financial statements and government-wide financial
statements. Which of the following is not one of these differences?
a. Certain fund financial statements may be prepared using the current financial resources
measurement focus, but government-wide financial statements are prepared using the economic
resources measurement focus.
b. Fund financial statements focus on reporting major governmental and enterprise funds, but
government-wide financial statements focus on reporting the government as a whole.
c. Fund financial statements do not include a statement of cash flows, but a statement of cash
flows is required for the government-wide financial statements.
d. Fiduciary funds are included in fund financial statements, but not included in governmentwide
financial statements.
,e. Discretely presented component units are reported in government-wide financial statements,
but not Fund financial statements do not include a statement of cash flows, but a statement
of cash flows is required for the government-wide financial statements.
Which of the following would not be reported as part of net position in the government-wide
statement of net position?
a. Restricted net position
b. Committed net position
c. Unrestricted net position
d. Net investment in capital assets
e. All of the above are a part of government-wide net position. Committed net position
Which of the following statements is true regarding Internal Service Fund reporting in the
government-wide financial statements?
a. Internal Service Funds are reported in a separate column.
b. Internal Service Fund assets and liabilities are aggregated with the assets and liabilities of
governmental or business-type activities depending on which activity is the major consumer of
Internal Service Fund services.
c. Internal Service Fund assets and liabilities are combined with the Enterprise Fund activities
and reported as part of business-type activities.
, d. None of the above. Internal Service Fund assets and liabilities are aggregated with the
assets and liabilities of governmental or business-type activities depending on which activity is
the major consumer of Internal Service Fund services
Which of the following types of adjustments to the government fund financial statements are
necessary to prepare the governmental activities portion of the government-wide financial
statements?
a. Capital assets and related depreciation must be recorded.
b. Proceeds from issuing long-term debt must be recorded as liabilities.
c. Expenses must be recognized when incurred so noncurrent liabilities from current transactions
and events must be reported.
d. Revenues must be recognized on the accrual basis of accounting so the governmental fund
"measurable and available" rule is discarded.
e. All of the above. All of the above
At the beginning of its 2019 fiscal year, Sawyer City has general capital assets of $1,200,000 and
accumulated depreciation on these assets of $400,000. What worksheet journal entry does
Sawyer City need to make to prepare its fiscal year ending 2019 government-wide financial
statements?
a.
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A village levies property taxes in the amount of $4,290,000 for the fiscal year ended June 30,
2019. It collects $4,200,000 during the year. Regarding the remaining $90,000 of delinquent
receivables, it expects to collect $60,000 in July and August of 2019 and another $20,000 after
August 2019 but before March 2020. It expects to write off $10,000 as uncollectible. How much
should the village recognize as property tax revenue in its government-wide statement of
activities for the fiscal year ended June 30, 2019?
a. $4,290,000
b. $4,280,000
c. $4,260,000
d. $4,200,000 $4,280,000
A city issues $500,000 of 10-year general obligation bonds on April 1, 2019. It is required to
make a principal payment of $50,000 on April 1 of each year, starting with April 1, 2020, with
interest of 4 percent per annum paid on the unpaid principal. How much interest expenditure and
expense should the city recognize in its governmental fund and government-wide operating
statements for the calendar year ending December 31, 2019?
Governmental Fund Operating Statement Government-Wide Operating Statement
,A$15,000 $15,000
B00
C 0 15,0000
D 0 15,000 D
Governmental Fund Operating Statement: 0
Government-Wide Operating Statement: 15,000
Significant differences exist between fund financial statements and government-wide financial
statements. Which of the following is not one of these differences?
a. Certain fund financial statements may be prepared using the current financial resources
measurement focus, but government-wide financial statements are prepared using the economic
resources measurement focus.
b. Fund financial statements focus on reporting major governmental and enterprise funds, but
government-wide financial statements focus on reporting the government as a whole.
c. Fund financial statements do not include a statement of cash flows, but a statement of cash
flows is required for the government-wide financial statements.
d. Fiduciary funds are included in fund financial statements, but not included in governmentwide
financial statements.
,e. Discretely presented component units are reported in government-wide financial statements,
but not Fund financial statements do not include a statement of cash flows, but a statement
of cash flows is required for the government-wide financial statements.
Which of the following would not be reported as part of net position in the government-wide
statement of net position?
a. Restricted net position
b. Committed net position
c. Unrestricted net position
d. Net investment in capital assets
e. All of the above are a part of government-wide net position. Committed net position
Which of the following statements is true regarding Internal Service Fund reporting in the
government-wide financial statements?
a. Internal Service Funds are reported in a separate column.
b. Internal Service Fund assets and liabilities are aggregated with the assets and liabilities of
governmental or business-type activities depending on which activity is the major consumer of
Internal Service Fund services.
c. Internal Service Fund assets and liabilities are combined with the Enterprise Fund activities
and reported as part of business-type activities.
, d. None of the above. Internal Service Fund assets and liabilities are aggregated with the
assets and liabilities of governmental or business-type activities depending on which activity is
the major consumer of Internal Service Fund services
Which of the following types of adjustments to the government fund financial statements are
necessary to prepare the governmental activities portion of the government-wide financial
statements?
a. Capital assets and related depreciation must be recorded.
b. Proceeds from issuing long-term debt must be recorded as liabilities.
c. Expenses must be recognized when incurred so noncurrent liabilities from current transactions
and events must be reported.
d. Revenues must be recognized on the accrual basis of accounting so the governmental fund
"measurable and available" rule is discarded.
e. All of the above. All of the above
At the beginning of its 2019 fiscal year, Sawyer City has general capital assets of $1,200,000 and
accumulated depreciation on these assets of $400,000. What worksheet journal entry does
Sawyer City need to make to prepare its fiscal year ending 2019 government-wide financial
statements?
a.
