turquoise_cat
Test por , creado hace más de 1 año

Chapter 7

255
1
0
turquoise_cat
Creado por turquoise_cat hace alrededor de 10 años
Cerrar

State & Local Govt - Business-type Activities

Pregunta 1 de 29

1

Under utility regulatory accounting principles (RAP), the account "Utility Plant Acquisition Adjustment" reflects

Selecciona una de las siguientes respuestas posibles:

  • The difference between the amount paid for utility plant and the amount originally paid by the utility that first placed the plant into public service, less accumulated depreciation.

  • The difference between the fair market value of the utility plant and the amount paid for it, less accumulated depreciation.

  • The difference between the amount paid for the utility plant less its current replacement cost.

  • The difference between the amount paid for the utility plant less the fair market value of its tangible plant assets.

Explicación

Pregunta 2 de 29

1

Which of the following activities or services would most likely not be accounted for by an internal service fund?

Selecciona una de las siguientes respuestas posibles:

  • Electronic data processing.

  • Central purchasing, warehousing, and issuing of supplies.

  • Municipal golf course.

  • Risk management.

Explicación

Pregunta 3 de 29

1

Which of the following is not true regarding proprietary funds?

Selecciona una de las siguientes respuestas posibles:

  • The difference between assets and liabilities of proprietary funds is called "fund balance".

  • Proprietary funds record long-term debt directly in the fund accounts.

  • Proprietary funds record capital assets directly in the fund accounts.

  • Proprietary funds present a statement of cash flows.

Explicación

Pregunta 4 de 29

1

To establish a new internal service fund with a transfer of funds (not to be repaid), which account would be credited in the internal service fund?

Selecciona una de las siguientes respuestas posibles:

  • Cash.

  • Interfund Transfer In.

  • Interfund Transfer Out.

  • Estimated Revenues.

Explicación

Pregunta 5 de 29

1

When a new utility customer submits a deposit, the enterprise fund journal entry will include

Selecciona una de las siguientes respuestas posibles:

  • A credit to Customer Deposits.

  • A debit to Customer Deposits.

  • A debit to Sales of Water.

  • A credit to Sales of Water.

Explicación

Pregunta 6 de 29

1

Which of the following account balances would only be reported if a city-owned utility followed regulatory accounting principles?

Selecciona una de las siguientes respuestas posibles:

  • Depreciation expense.

  • Pumping expense.

  • Restricted Assets-Cash.

  • Utility Plant Acquisition Adjustments.

Explicación

Pregunta 7 de 29

1

Which of the following is not a true statement about the Allowance for Funds Used During Construction (AFUDC)?

Selecciona una de las siguientes respuestas posibles:

  • AFUDC may have either a debt component or an equity component.

  • The amount credited to AFUDC may exceed the amount of interest paid during the period on bonds issued for construction.

  • AFUDC may be credited for an imputed amount of interest on the utility's own funds used for construction.

  • AFUDC may include the total amount of borrowing during construction.

Explicación

Pregunta 8 de 29

1

The liability for general obligation bonds issued for the benefit of a governmentally owned electric utility and serviced by its earnings should be recorded in

Selecciona una de las siguientes respuestas posibles:

  • An enterprise fund.

  • An enterprise fund and disclosed in the notes to the financial statements.

  • An enterprise fund and the business-like activities accounts.

  • The governmental activities accounts.

Explicación

Pregunta 9 de 29

1

How should financial information for internal service funds be reported in the government-wide financial statements?

Selecciona una de las siguientes respuestas posibles:

  • As part of governmental activities.

  • As part of business-type activities.

  • Amounts allocated proportionately between governmental and business-type activities.

  • Usually as part of governmental activities, unless the internal service fund predominantly serves one or more enterprise funds.

Explicación

Pregunta 10 de 29

1

Primarily, the operating statement of a proprietary fund should provide information useful in answering which of the following questions?

Selecciona una de las siguientes respuestas posibles:

  • What are the transactions or events of the period that have increased or decreased the resources available for spending in the near future?

  • Have current financial resources increased or decreased during the period?

  • Have cash balances increased or decreased as a result of transactions and events of the period?

  • What are the transactions or events of the period that have increased or decreased the fund's total economic resources?

Explicación

Pregunta 11 de 29

1

Which of the following is true regarding the statement of revenues, expenses, and changes in fund net position—proprietary funds?

Selecciona una de las siguientes respuestas posibles:

  • Enterprise and internal service funds identified as major funds are shown in separate columns.

  • Capital contributions are shown after the nonoperating revenues/expenses section.

  • Any special items are to be included as operating income and expenses.

  • The statement must be divided into operating, nonoperating, and other revenues and expenses sections.

Explicación

Pregunta 12 de 29

1

How does an internal service fund differ from an enterprise fund?

Selecciona una de las siguientes respuestas posibles:

  • An internal service fund's primary revenue source is user charges.

  • An internal service fund is a proprietary fund.

  • An internal service fund's primary customers are departments of the same government.

  • An internal service fund's focus is on the economic flow of resources.

Explicación

Pregunta 13 de 29

1

Which of the following is not one of the required financial statements for proprietary funds?

Selecciona una de las siguientes respuestas posibles:

  • Statement of net position.

  • Statement of cash flows.

  • Statement of revenues, expenses, and changes in fund net position.

  • Statement of revenues, expenditures, and changes in fund balances.

Explicación

Pregunta 14 de 29

1

At the government-wide level, financial information for an internal service fund is:

Selecciona una de las siguientes respuestas posibles:

  • Generally reported in the Governmental Activities column.

  • Generally reported in the Business-type Activities column.

  • At management's discretion is reported in the Governmental Activities or Business-type Activities column.

  • Generally reported in the Component Units column.

Explicación

Pregunta 15 de 29

1

Which of the following activities or services is least likely to be accounted for as an enterprise fund?

Selecciona una de las siguientes respuestas posibles:

  • A city swimming pool.

  • The provision of water to city residents.

  • The provision of central purchasing and warehousing of the city's supplies.

  • A municipal golf course.

Explicación

Pregunta 16 de 29

1

Which of the following accounts would least likely be found in the general ledger of an internal service fund?

Selecciona una de las siguientes respuestas posibles:

  • Expenditures.

  • Cash.

  • Billings to Departments.

  • Accumulated Depreciation—Machinery and Equipment.

Explicación

Pregunta 17 de 29

1

In an internal service fund the account Billings to Departments is reported as a (an):

Selecciona una de las siguientes respuestas posibles:

  • Current asset on the statement of net position.

  • Operating revenue.

  • Interfund loan.

  • None of the statements are correct.

Explicación

Pregunta 18 de 29

1

A cash flow statement prepared under GASB standards differs from one prepared under FASB standards in which of the following ways?

Selecciona una de las siguientes respuestas posibles:

  • The GASB statement of cash flows has four categories of cash flows rather than three.

  • The GASB statement of cash flows reports Cash and Cash Equivalents, not just Cash.

  • The GASB statement of cash flows reports investments in the securities of other entities as cash flows from investing activities.

  • All of the statements are correct.

Explicación

Pregunta 19 de 29

1

In enterprise fund accounting, restricted assets are:

Selecciona una de las siguientes respuestas posibles:

  • Those that management has designated for specific purposes or functions, such as future construction.

  • Those that are designed for a limited range of uses; for example, a special purpose vehicle designed for use of personnel of an electric utility in installing power line poles.

  • Those whose use is restricted by contractual agreements or legal requirements.

  • All of the statements are correct.

Explicación

Pregunta 20 de 29

1

In accounting for a municipally owned electric utility, customer deposits are reported as:

Selecciona una de las siguientes respuestas posibles:

  • Revenues from Customer Deposits.

  • A restricted asset.

  • A liability payable from restricted assets or as a current liability.

  • Both A restricted asset and A liability payable from restricted assets or as a current liability are correct.

Explicación

Pregunta 21 de 29

1

What is the term that represents the cost of a utility plant to the owner that first devotes the plant to public customers?

Selecciona una de las siguientes respuestas posibles:

  • Original cost.

  • Historical cost.

  • Sunk cost.

  • Public cost.

Explicación

Pregunta 22 de 29

1

If an Allowance for Funds Used During Construction (AFUDC) account is used, which of the following is true?

Selecciona una de las siguientes respuestas posibles:

  • AFUDC will always have a credit balance equal to the total amount of interest paid during the period on bonds payable.

  • AFUDC may represent either actual interest on debt issued for construction or an imputed interest on the utility's own equity capital used to finance construction.

  • AFUDC is reported as a contra-asset on the utility's balance sheet.

  • All of the statements are true.

Explicación

Pregunta 23 de 29

1

Net position of an enterprise fund should be reported in which of the following categories?

Selecciona una de las siguientes respuestas posibles:

  • Contributed capital and retained earnings.

  • Unreserved, reserved, and invested in capital assets.

  • Unrestricted, restricted, and invested in capital assets, net of related debt.

  • Net investment in capital assets; restricted; and unrestricted.

Explicación

Pregunta 24 de 29

1

The Fulton Municipal Golf Course, an enterprise fund, issued a long-term mortgage note to finance the construction of a new clubhouse. Issuance of the note would be reported in which section of the statement of cash flows?

Selecciona una de las siguientes respuestas posibles:

  • Investing activities.

  • Noncapital financing activities.

  • Capital and related financing activities.

  • Operating activities.

Explicación

Pregunta 25 de 29

1

The city's Solid Waste Disposal Fund transferred $560,000 of cash to the city's General Fund to help the General Fund cover operating expenditures. How would the transfer be reported in the Solid Waste Disposal Fund's statement of cash flows?

Selecciona una de las siguientes respuestas posibles:

  • Operating activity

  • Noncapital financing activity.

  • Capital and related financing activity.

  • It would not be reported since it involved a transfer between two funds of the same government.

Explicación

Pregunta 26 de 29

1

GASB standards require that pricing of goods or services provided by enterprise funds must:

Selecciona una de las siguientes respuestas posibles:

  • Cover at least the marginal costs of the goods or services.

  • Cover at least the variable costs of the goods or services.

  • Cover the full cost of providing the goods or services.

  • None of the statements are correct.

Explicación

Pregunta 27 de 29

1

Bates City's municipal solid waste landfill (MSWLF) is accounted for as an enterprise fund. The estimated total closure and postclosure costs are $375,000. At the beginning of the current reporting period the landfill was estimated to be 40 percent filled and the MSWLF had recognized expenses totaling $150,000 (40 percent of $375,000). The city's sanitation engineers have estimated at the end of the current fiscal year that total closure and postclosure costs remain at $375,000 and the landfill is now 45 percent filled. The current year expense, referred to as provision for closure and postclosure costs, should be debited for:

Selecciona una de las siguientes respuestas posibles:

  • $18,750.

  • $168,750.

  • $225,000.

  • Since the units of production are not provided the amount cannot be determined.

Explicación

Pregunta 28 de 29

1

Which of the following is not a true statement regarding segment reporting for enterprise funds?

Selecciona una de las siguientes respuestas posibles:

  • A segment is an identifiable activity reported as or within an enterprise fund or an other stand-alone entity for which one or more revenue-backed debt securities are outstanding.

  • Segment reporting is not required for an activity that is reported as a major fund.

  • Full financial statements are required for each reportable segment.

  • Condensed financial statements are required for each reportable segment.

Explicación

Pregunta 29 de 29

1

The city operates a Risk Management Pool, an internal service fund, for self-insurance purposes. The General Fund requests payment for costs incurred for the repair of damages done to a garage as a result of a storm. How would the General Fund's request be recognized at the fund level by the Risk Management Pool?

Selecciona una de las siguientes respuestas posibles:

  • It would debit an expense account and credit Cash.

  • It would debit Interfund Transfer Out and credit Cash.

  • It would debit Building and credit Cash.

  • It would not record a transaction since the activity occurred between two funds of the same government.

Explicación

Anterior
Siguiente