Question: The Prince-Robbins partnership has the following

> In Problem 12, which of the following statements is true about reporting a revenue in connection with this gift? Problem 12 The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front ofthe municipal building. Which o

> The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Which of the following is true for reporting the gift within the government-wide financial statements? a. A capital asset of $240,

> The City of Nomanchester has a defined benefit pension plan for a number of its employees. A pension trust fund has been set up that currently has a net position of $32.7 million because quite a number of investments are being held. An actuary estimates

> The City of Francois, Texas, has begun the process of producing its current comprehensive annualfinancial report (CAFR). Several organizations that operate within the city are related in some wayto the primary government. The city’s accountant is attempt

> A city government adds street lights within its boundaries at a total cost of $300,000. The lights should burn for at least 10 years but can last significantly longer if maintained properly. The city sets up a system to monitor these lights with the goal

> The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $230,000 Adams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,0

> On January 1, 2017, the City of Graf pays $60,000 for a work of art to display in the local library. The city will take appropriate measures to protect and preserve the piece. However, if the work is ever sold, the money received will go into unrestricte

> On January 1, 2017, a rich citizen of the Town of Ristoni donates a painting valued at $300,000 to be displayed to the public in a government building. Although this painting meets the three criteria to qualify as an artwork, town officials choose to rec

> The City of Columbus has approximately 2,000 employees. For the past three decades, the city has provided its employees with a defined benefit pension plan. The plan contract calls for specific payment amounts to be made to each retiree based on a set fo

> The City of Lawrence opens a solid waste landfill in 2017 that is at 54 percent of capacity on December 31, 2017. The city had initially anticipated closure costs of $2 million but later that year decided that closure costs would actually be $2.4 million

> On January 1, 2017, the City of Hastings created a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.2 million plus an a

> For component units, what is the difference in discrete presentation and blending? a. A blended component unit is shown to the left of the statements; a discretely presented component unit is shown to the right. b. A blended component unit is shown at th

> The City of Huble has a defined benefit pension plan for a number of its employees. Which of the following is not included immediately in the determination of pension expense that this government should recognize in its government-wide financial statemen

> If this landfill is judged to be a proprietary fund, what liability will be reported at the end of the second year on fund financial statements? a. $–0– b. $110,000 c. $190,000 d. $200,000 A city starts a solid waste landfill that it expects to fill to

> The accountants for a city are attempting to determine the proper reporting for a new transaction so that the financial statements are in conformity with generally accepted accounting principles. No authoritative answer can be found. What should happen n

> City government officials are analyzing a complicated financial transaction. A GASB Implementation Guide seems to provide one reporting answer and a GASB Concepts Statement seems to provide a different answer. What reporting is most appropriate? a. The g

> On January 1, 2017, the dental partnership of Angela, Diaz, and Krause was formed when thepartners contributed $30,000, $58,000, and $60,000, respectively. Over the next three years, thebusiness reported net income and (loss) as follows: 2017 . . . . . .

> The City of Dickens has a fiscal year ending December 31, Year 5. The city council is viewed asthe highest level of decision-making authority for the government. For each of the following, indicatewhether the overall statement is true or false. Assume th

> A city starts a public library that has separate incorporation and gets some of its money for operationsfrom the state and some from private donations. Indicate whether each of the following independentstatements is true or false and briefly explain each

> A city receives a copy of its original charter from the year 1799 as a gift from a citizen. The documentwill be put under glass and displayed in the city hall for all to see. The fair value is estimatedat $10,000. Indicate whether each of the following i

> Use the same information as in problem 44 except that, by the end of Year 3, the landfill is40 percent filled. The city now realizes that the total closure costs will be $3 million. Indicatewhether each of the following independent statements is true or

> A city has a solid waste landfill that was filled 12 percent in Year 1 and 26 percent in Year 2. Duringthose periods, the government expected that total closure costs would be $2 million. As a result,it paid $50,000 to an environmental company on July 1

> On the first day of the year, the City of Wolfe bought $20,000 of equipment with a 5-year life andno salvage value for its school system. It was capitalized but no other entries were ever made. Themachine was monitored using the modified approach. a. Bas

> The city maintains a landfill that has been recorded during the current year within its parks. The landfillgenerated program revenues of $4,000 in Year 4 and cash expenses of $15,000. It also paid $3,000cash for a piece of land. These transactions were r

> Assume that the one component unit had program revenues of $30,000 and expenses of $42,000and spent $10,000 for land during Year 4. However, it should have been handled as a blended componentunit, not as a discretely presented component unit. According t

> On the first day of Year 4, the city receives a painting as a gift that qualifies as a work of art. It has a30-year life, is worth $15,000, and is being displayed at one of the local parks. The accountant accidentallycapitalized and depreciated it althou

> For each of the following, indicate whether the statement is true or false and include a brief explanationfor your answer. a. A pension trust fund appears in the government-wide financial statements but not in the fundfinancial statements. b. Permanent f

> Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. Atthe beginning of 2018, capital balances were as follows: Purkerson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000 Smith . . . . . . .

> Use the information in problem 37 to prepare the 2017 fund financial statements for the governmental funds and the proprietary funds. A statement of cash flows is not required. Assume that “available” is defined as within 60 days and that all funds are m

> The City of Pfeiffer starts the year of 2017 with the general fund and an enterprise fund. The general fund has two activities: education and parks/recreation. For convenience, assume that the general fund holds $123,000 cash and a new school building co

> The City of Bernard starts the year of 2017 with the following unrestricted amounts in its general fund: cash of $20,000 and investments of $70,000. In addition, it holds a small building bought on January 1, 2016, for general government purposes for $30

> The following information pertains to the City of Williamson for 2017, its first year of legal existence. For convenience, assume that all transactions are for the general fund, which has three separate functions: general government, public safety, and h

> The County of Maxnell decides to create a sanitation department and offer its services to thepublic for a fee. As a result, county officials plan to account for this activity within the enterprisefunds. Prepare journal entries for this operation for the

> A local citizen gives the City of Salem a painting by Picasso to display in city hall. Under what condition will the city not report this painting as a capital asset on its government-wide financial statements? If it does report the painting as a capital

> The City of Ronchester has a defined benefit pension plan for its firefighters. How is the amount of pension expense determined that should be recognized in the current year?

> A teacher working for the City of Lights will be provided with a defined benefit pension plan. The city sets up a pension trust fund to monitor the resources held for these future payments. How is the amount of net pension liability to be reported in the

> The City of VanStone operates a solid waste landfill. This facility is 11 percent full after the first year of operation and 24 percent after the second year. How much expense should be recognized on the government-wide financial statements in the second

> A landfill is scheduled to be filled to capacity gradually over a 10-year period. However, at the end of the first year of operations, the landfill is only 7 percent filled. How much liability for closure and postclosure costs should be recognized on gov

> The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business’sprofit or loss in the following sequence: ∙ Jones, the managing partner, receives a bonus equal to 20 percent of the business’s profit. ∙ Each partner

> Why does the operation of a solid waste landfill create reporting concerns for a local government?

> Officials for the city of Winfield have agreed to forgo real estate taxes normally charged to Jamieson Corporation for the subsequent 10 years. In exchange, Jamieson has agreed to build a distribution facility that is expected to hire 500 new employees.

> The accountants for a city government are attempting to determine the appropriate method of reporting a series of unique financial transactions. They have reviewed all of the authoritative sources of GAAP and have not located an answer. What action shoul

> Authoritative GAAP for state and local governments is divided into two categories with the first category having more authority than the second. What sources of GAAP are found in both of these categories?

> What is the most common form for the financial statements prepared by public colleges and universities?

> What are some of the major differences that exist between private colleges and universities and public colleges and universities that affect financial reporting?

> A general purpose government takes over a special purpose government in an acquisition. The consideration is larger than the acquisition value of all assets and liabilities. How is the excess reported?

> In governmental accounting, what is the difference between an acquisition and a merger? What differences exist between the accounting for an acquisition and for a merger?

> How are internal service funds reported on government-wide financial statements?

> Why does a government determine the net expenses or revenues for each of the functions within its statement of activities?

> How does partnership accounting differ from corporate accounting?

> What is the difference in program revenues and general revenues? Why is that distinction important?

> What are the two fund financial statements for governmental funds? What information does each normally present?

> What are the two government-wide financial statements? What does each normally present?

> What is the difference between a blended component unit and a discretely presented component unit?

> The Willingham Museum qualifies as a component unit of the City of Willingham. How does an activity or function meet the requirements to be deemed a component unit of a primary government?

> A primary government can be either a general purpose government or a special purpose government. What is the difference in these two? How does an activity qualify as a special purpose government?

> What does a comprehensive annual financial report (known as the CAFR) include?

> What does the management’s discussion and analysis (MD&A) normally include? Where does a state or local government present this information?

> What impact does the use of the modified approach have on reporting within the government-wide financial statements?

> Under what condition is the modified approach applied by a state or local government?

> A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabilities$240,000; Nixon, Capital (50 percent of profits and losses) $200,000; Hoover, Capital (20 percent)$120,000; and Polk, Capital (30 percent) $90,000. Each of

> Assume in question (9) that the city does not choose to report the painting on the government-wide financial statements as a capital asset. Must the city report a revenue for the gift? In question (9) A local citizen gives the City of Salem a painting b

> Search the Internet for the official website of one or more state or local governments. After reviewingthis website, determine whether the latest comprehensive annual financial report (CAFR) is available onthe site. For example, the most recent comprehen

> The City of Danmark is preparing financial statements. Officials are currently working on the statementof activities within the government-wide financial statements. A question has arisen as to whether a particularrevenue should be identified on governme

> The City of Hampshore is currently preparing financial statements for the past fiscal year. The city manager is concerned because the city encountered some unusual transactions during the current fiscal period and is unsure as to their handling. Require

> The City of Bainland has been undergoing financial difficulties because of a decrease in its tax base caused by corporations leaving the area. On January 1, 2017, the city has a fund balance of only $400,000 in its governmental funds. In 2016, the city h

> Search the Internet for the official website of one or more state or local governments. On this website,determine whether the latest comprehensive annual financial report (CAFR) is available. For example,a recent comprehensive annual financial report for

> Obtain a copy of the original version of GASB Statement 34. Read paragraphs 239 through 277. Required Write a report describing alternatives that the GASB considered when it created Statement 34. Indicatethe alternative that you would have viewed as mos

> Go to the website www.gasb.org and click on “About Us” included in the list that runs across the top of the page. Then click on “Mission, Vision, and Core Values.” Read the information provided by GASB. Required Assume that a financial analyst with whom

> A government expects to receive revenues of $400,000 but has approved expenditures of $430,000.The anticipated shortage will have an impact on which of the following terms? a. Interperiod equity b. Modified accrual accounting c. Consumption accounting d.

> Which of the following statements is true? a. There are three different types of proprietary funds. b. There are three different types of fiduciary funds. c. There are five different types of fiduciary funds. d. There are five different types of governme

> When a partner withdraws from a partnership, why is the final distribution often based on theappraised value of the business rather than on the book value of the capital account balance?

> What is the purpose of enterprise funds? a. To account for operations that provide services to other departments within a government. b. To account for asset transfers. c. To account for ongoing activities such as the police and fire departments. d. To a

> What is the purpose of a special revenue fund? a. To account for revenues legally or externally restricted as an operating expenditure. b. To account for ongoing activities. c. To account for gifts when only subsequently earned income can be expended. d.

> Which of the following is not a governmental fund? a. Special revenue fund b. Internal service fund c. Capital projects fund d. Debt service fund

> Cash of $20,000 is transferred from the general fund to the enterprise fund to pay for work that wasdone. What is reported on the fund financial statements? a. No reporting is made. b. Other Financing Sources increase by $20,000; Other Financing Uses inc

> Cash of $20,000 is transferred from the general fund to the enterprise fund to pay for work that wasdone. What is reported on the government-wide financial statements? a. No reporting is made. b. Other Financing Sources increase by $20,000; Other Financi

> Cash of $60,000 is transferred from the general fund to the debt service fund. What is reported onthe fund financial statements? a. No reporting is made. b. Other Financing Sources increase by $60,000; Other Financing Uses increase by $60,000. c. Revenue

> Cash of $60,000 is transferred from the general fund to the debt service fund. What is reported onthe government-wide financial statements? a. No reporting is made. b. Other Financing Sources increase by $60,000; Other Financing Uses increase by $60,000.

> Which of the following is an example of an interactivity transaction? a. Money is transferred from the general fund to the debt service fund. b. Money is transferred from the capital projects fund to the general fund. c. Money is transferred from the spe

> A city constructs curbing in a new neighborhood and finances it as a special assessment. Underwhat condition should these transactions be recorded in an agency fund? a. Never; the work is reported in the capital projects funds. b. Only if the city is sec

> A city constructs a special assessment project (a sidewalk) for which it is secondarily liable. Thecity issues bonds of $90,000. It authorizes another $10,000 that is transferred out of the generalfund. The sidewalk is built for $100,000. The citizens ar

> Under what circumstance might goodwill be allocated to a new partner entering a partnership?

> A $110,000 payment is made on a long-term liability. Of this amount, $10,000 represents interest.Which of the following is not true for the recording of this transaction? a. Reduce liabilities by $100,000 in the government-wide financial statements. b. R

> The City of Frost has a 20-year debt outstanding. On the last day of the current year, this debt has anoutstanding balance of $4.8 million and five years remaining until it is due. On that date, the debt ispaid off early for $5 million. A new debt is iss

> The City of Dylan issues a 10-year bond payable of $1 million at face value on the first day of Year1. Debt issuance costs of $10,000 are paid on that day. For government-wide financial statements,how is this debt issuance cost reported? a. $1,000 is rec

> A city issues five-year bonds payable to finance construction of a new school. What recordingshould be made? a. Report the liability in the government-wide financial statements; show an other financing sourcein the fund financial statements. b. Report a

> A city issues a 60-day tax anticipation note to fund operations until taxes have been collected. Whatrecording should it make? a. The liability should be reported in the government-wide financial statements; an other financingsource should be shown in th

> The state awards a grant of $50,000 to the Town of Glenville. The state will pay the grant moneyto the town as a reimbursement for money spent on road repair. At the time of the grant, the statepays $8,000 in advance. During the first year of this progra

> The state government passes a law requiring localities to upgrade their water treatment facilities.The state then awards a grant of $500,000 to the Town of Midlothian to help pay for this cost. Whattype of revenue is this grant? a. Derived tax revenue. b

> An income tax is an example of which of the following? a. Derived tax revenue. b. Imposed nonexchange revenue. c. Government-mandated nonexchange revenue. d. Voluntary nonexchange transaction.

> A city acquires supplies for its fire department and uses the consumption method of accounting.Which of the following statements is true for the fund statements? a. An expenditures account was debited at the time of receipt. b. An expense is recorded as

> A government buys equipment for its police department at a cost of $54,000. Which of the followingis not true? a. Equipment will increase by $54,000 in the government-wide financial statements. b. Depreciation in connection with this equipment will be re

> A new partner enters a partnership and goodwill is calculated and credited to the original partners.How is the specific amount of goodwill assigned to these partners?

> At the end of the current year, a government reports a fund balance—assigned balance of $9,000 inconnection with an encumbrance. What information is being conveyed? a. A donor has given the government $9,000 that must be used in a specified fashion. b. T

> A purchase order for $3,000 is recorded in the general fund for the purchase of a new computer. Thecomputer is received at an actual cost of $3,020. Which of the following statements is correct? a. Machinery is increased in the general fund by $3,020. b.

> The general fund pays rent for two months. Which of the following is not correct? a. Rent expense should be reported in the government-wide financial statements. b. Rent expense should be reported in the general fund. c. An expenditure should be reported

> Which of the following statements is true concerning the recording of a budget? a. At the beginning of the year, debit Appropriations. b. A debit to the Budgetary Fund Balance account indicates an expected surplus. c. At the beginning of the year, debit

> Which of the following statements is correct about the reporting of governmental funds? a. Fund financial statements measure revenues and expenditures based on modified accrualaccounting. b. Government-wide financial statements measure revenues and expen

> Which of the following statements is correct about the reporting of governmental funds? a. Fund financial statements measure economic resources. b. Government-wide financial statements measure only current financial resources. c. Fund financial statement