Test Bank for Introduction to Government and Non-For-Profit Accounting 7E - Ives -

Chapter 10: Government-Wide Financial Statements Multiple Choice

1.

To what what extent extent sho should uld fund fund or fund fund type type data data be disp display layed ed on on the the face face of of government-wide financial statements? a. Informati Information on should should be displ displayed ayed for for the government government as a whole, whole, but individual funds or fund types should not be displayed  b. Information should be displayed by fund type, with a total for the government as a whole c. Informati Information on should should be displ displayed ayed by major fund, with a total total for the government as a whole d. Informati Information on should should be displayed displayed by major fund, except except for for fiduciary fiduciary funds funds

Answ Answer er::

.

a

!hich !hich meas measure uremen mentt focus focus sho should uld be used used in gov governm ernment ent-wi -wide de fina financi ncial al statements? a. the same same measurem measurement ent focus focus as that used used in accounting accounting for for each fund type type  b. the current financial resources measurement focus c. the econom economic ic reso resourc urces es meas measure uremen mentt focus focus d. the economic economic resources resources measurem measurement ent focus focus for for government governmental al fund fund types types and the current financial resource measurement focus for proprietary and fiduciary fund types

Answ Answer er::

c

&.

#ow sho should uld compon component ent units units be disp display layed ed in in gover governme nmentnt-wid widee fina financia nciall statements? a. 'omponent 'omponent units units should should not be reported reported in governmen government-wi t-wide de financia financiall statements  b. (ll component units should be included either in the column for governmental activities or in the column for business-type activities c. 'omponent 'omponent units units should should be blended blended where where appropria appropriate) te) discre discretely tely  presented component units should be reported in a separate column d. (ll component component units should should be included included with with other business-ty business-type pe activities activities

Answ Answer er::

*.

#ow sho should uld bond bondss payabl payablee be repo reporte rted d on gover governmen nment-w t-wide ide financi financial al stat stateme ements nts?? a. +onds payable payable should should be reporte reported d as an an offset offset to to capital capital assets assets in in the assets section of the statement of net position  b. +onds payable should not be reported on the government-wide financial statements c. +onds payable payable should should be separated separated between between amounts amounts due to be paid in in one year and amounts due to be paid in more than one year  d. +onds payable payable should should be reporte reported d in the the net position position section section of the the statement of net position

Answ Answer er::

.

c

c

In accor accordan dance ce with with a bon bond d agreeme agreement, nt, assets assets are being being accumu accumulat lated ed in in a sini sining ng fund to pay bonds due du e in  years. The assets are reported as Investments. !hat

/.

( city health department charges fees for copies of birth certificates provided to its citi$ens. #ow should those fees be reported in the government-wide statement of activities? a. as a separate item of revenue in the revenue section  b. as a direct reduction of the expenses of the health department c. as an element of program revenues, which reduce gross expenses of the health department d. as a special item

Answer:

0.

( city government levies property taxes that are recorded directly into a ebt 2ervice 3und, rather than the 4eneral 3und. #ow should those property taxes be reported in the government-wide statement of activities? a. as property tax revenue in the general revenues section  b. as a direct reduction of interest expenses in the functional expense section c. as an element of program revenue, which reduce gross interest expenses d. as a negative expense, which is then allocated to all functions or programs

Answer:

5.

c

a

#ow should Internal 2ervice 3und 6I237 activities be reported in the governmentwide statement of activities? a. I23 activities should be reported in a separate column  b. I23 activities should be included in the column headed 8business-type activities.8 I23 activities should be included in the column headed 8governmental

1.

9erchants remit :0, to a county government in calendar year 1" for sales taxes collected in 1". In ;anuary, 1&, they send the county an additional :*, applicable to the year 1&. +ased on past experience, the county expects to receive an additional :1*, later in 1&, but applicable to 1". #ow much should the county recogni$e as sales tax revenues when it prepares its fund and government-wide financial statements? 3und 4overnment-wide 2tatements 2tatements a. :0, :0,  b. :0, :0&, c. :0*, :0*, d. :0*, :0&,

Answer:

11.

d

(n Internal 2ervice 3und 6I237 provided services to two agencies financed by the 4eneral 3und -- the Tax epartment 6which it billed :,7 and the 'omptroller