governmental accounting exam 2
questions with verified answers graded
A+
long lived assets used by activities financed by the general fund or other
governmental funds are called ________________________________. - correct
answer ✔✔general capital assets
how are general capital assets commonly financed? with long term debt to be
repaid by 1.______________
2.______________
3._____________.
4._____________
5______________
6_____________ - correct answer ✔✔tax revenues, special assessments, grants
from governments, transfers from funds, gifts from individuals, lease financing
if money received from the various places general capital assets can be financed
with and they are ____________, ____________, or ______________ to the
purchase or construction of specified general capital assets, it's recommended
that a ________________________ fund be created. - correct answer
✔✔restricted, committed, assigned, capital projects fund
why do governmental funds not record capital assets acquired by the funds? -
correct answer ✔✔they only account for current financial resources
,instead of capital assets being recorded in the governmental fund level, they are
recorded where? - correct answer ✔✔governmental activities
how may general capital assets be acquired? - correct answer ✔✔expenditures of
the general fund, special revenue funds, capital projects funds
where is the cost or other carrying value of general capital assets and any related
long term debt recorded? - correct answer ✔✔governmental activities
what helps achieve accountability and provides information needed for various
items under capital assets? - correct answer ✔✔inventory records
what does having inventory records of capital assets achieve? - correct answer
✔✔maintenance program, preparing budget requests for replacements, adequate
insurance, assigns responsibility for custody of the assets
How are general capital assets recored as of GASB? - correct answer ✔✔historical
cost
if general capital assets are donated, how are they recorded? - correct answer
✔✔acquisition value at time of receipt plus ancillary charges
if a general capital asset is donated, how is the revenue related to the donation
recognized? - correct answer ✔✔government wide statement of activities
, acquisition of a general capital asset represents an expenditure in a
_____________________ but requires capitalization of an asset in the appropriate
______________________ account. - correct answer ✔✔governmental fund,
governmental activities
What does GASB require with regards to general capital asssets about notes to the
financial statements? - correct answer ✔✔reported in the governmental activities
column and business type activities
what are the required disclosures for general capital assets for governmental
activities and business type activities? - correct answer ✔✔boy and eoy balances
with accumulated depreciation separate from historical cost, capital acquisitions
during the year, sales/dispositions during the year, depreciation expense for
current period, things that are not capitalized and explaining why they aren't
what are the required disclosures for general capital assets under a lease
agreement? - correct answer ✔✔basis, terms and conditions, existence, terms
and conditions of residual value, amount of lease assets and related accumulated
depreciation disclosed separately from other capital assets, amount of outflows of
resources recognized in the reporting periods, principal and interest requirements
to maturity, commitments under leases before commencement of lease term,
components of any loss associated with impairment of the lease
what are the three types of impairment measurements that are acceptable for
use when an asset is impaired affecting the duration of its use? - correct answer
✔✔restoration cost approach, service units approach, deflated depreciated
replacement cost approach
questions with verified answers graded
A+
long lived assets used by activities financed by the general fund or other
governmental funds are called ________________________________. - correct
answer ✔✔general capital assets
how are general capital assets commonly financed? with long term debt to be
repaid by 1.______________
2.______________
3._____________.
4._____________
5______________
6_____________ - correct answer ✔✔tax revenues, special assessments, grants
from governments, transfers from funds, gifts from individuals, lease financing
if money received from the various places general capital assets can be financed
with and they are ____________, ____________, or ______________ to the
purchase or construction of specified general capital assets, it's recommended
that a ________________________ fund be created. - correct answer
✔✔restricted, committed, assigned, capital projects fund
why do governmental funds not record capital assets acquired by the funds? -
correct answer ✔✔they only account for current financial resources
,instead of capital assets being recorded in the governmental fund level, they are
recorded where? - correct answer ✔✔governmental activities
how may general capital assets be acquired? - correct answer ✔✔expenditures of
the general fund, special revenue funds, capital projects funds
where is the cost or other carrying value of general capital assets and any related
long term debt recorded? - correct answer ✔✔governmental activities
what helps achieve accountability and provides information needed for various
items under capital assets? - correct answer ✔✔inventory records
what does having inventory records of capital assets achieve? - correct answer
✔✔maintenance program, preparing budget requests for replacements, adequate
insurance, assigns responsibility for custody of the assets
How are general capital assets recored as of GASB? - correct answer ✔✔historical
cost
if general capital assets are donated, how are they recorded? - correct answer
✔✔acquisition value at time of receipt plus ancillary charges
if a general capital asset is donated, how is the revenue related to the donation
recognized? - correct answer ✔✔government wide statement of activities
, acquisition of a general capital asset represents an expenditure in a
_____________________ but requires capitalization of an asset in the appropriate
______________________ account. - correct answer ✔✔governmental fund,
governmental activities
What does GASB require with regards to general capital asssets about notes to the
financial statements? - correct answer ✔✔reported in the governmental activities
column and business type activities
what are the required disclosures for general capital assets for governmental
activities and business type activities? - correct answer ✔✔boy and eoy balances
with accumulated depreciation separate from historical cost, capital acquisitions
during the year, sales/dispositions during the year, depreciation expense for
current period, things that are not capitalized and explaining why they aren't
what are the required disclosures for general capital assets under a lease
agreement? - correct answer ✔✔basis, terms and conditions, existence, terms
and conditions of residual value, amount of lease assets and related accumulated
depreciation disclosed separately from other capital assets, amount of outflows of
resources recognized in the reporting periods, principal and interest requirements
to maturity, commitments under leases before commencement of lease term,
components of any loss associated with impairment of the lease
what are the three types of impairment measurements that are acceptable for
use when an asset is impaired affecting the duration of its use? - correct answer
✔✔restoration cost approach, service units approach, deflated depreciated
replacement cost approach
