TEST BANK For Accounting for Governmental and
Nonprofit Entities 19th Edition by Neely & Reck
Current financial resources include: - ANSWER: Marketable Securities
Receivables
Supplies
Prepaid Items
Cash
Estimated revenue from property taxes levied for the General Fund of the Village of
Oak Park is $100,000. Based on collections in recent years, approximately 3% of
gross tax levy will never be collected. The gross levy of property taxes for this fund
should be: - ANSWER: $103,093
If the General Fund makes a 180-day loan to the Library Operating Fund, a special
revenue fund, the journal entry recorded by the General Fund will include a debit to:
- ANSWER: Interfund Loans Receivable - Current
Fund Balance Equation: - ANSWER: Total Assets - (Total Liabilities + Deferred Inflows
of Resources of the General Fund)
If one fund transfers money to another and the receiving fund is not expected to
repay the amount transferred: - ANSWER: - The transfer is non reciprocal in nature
- The transfer is considered an interfund transfer
Which of the following transactions is reported on the government-wide financial
statements of a city? - ANSWER: An enterprise fund transfers a portion of fees
charged to customers to the General Fund
If the General Fund makes a long-term loan in the amount of $10,000 to the Library
Operating Fund, a special revenue fund, the General Fund will record a journal entry
that includes a debit to: - ANSWER: Fund Balance - Unassigned
Which of the following statements about the gov-wide statement of net position and
General Fund balance sheet is correct? - ANSWER: The statement of net position
reports financial info in a more condensed manner than does the General Fund
balance sheet
True or False: Net position at the gov-wide level and fund balances at the fund level
are analogous to the stockholders' equity of an investor-owned equity - ANSWER:
False
, During the current year, Star County levied $3,000,000 in property taxes, 1.5% of
which is expected to be uncollectible. During the year, the county collected
$2,700,000 and wrote off $25,000 as uncollectible. What amount should Star County
report as property tax revenue in its government-wide statement of activities for the
current year? - ANSWER: $2,955,000
Powder City purchased a piece of equipment to be used by a department financed
by the general fund. How should Powder report the acquisition in the general fund? -
ANSWER: As an expenditure
Goods for which a purchase order had been placed at an estimated cost of $1,600
were received at an actual cost of $1,550. The journal entry in the General Fund to
record the receipt of the goods will include a: - ANSWER: Debit to Encumbrances
Outstanding for $1,600
Credit to Vouchers Payable for $1,550
Debit to Expenditures for $1,550
Which of the following properly represents the format of the government-wide
statement of net position? - ANSWER: Assets and deferred outflows - liabilities and
deferred inflows equal net position
Garden City has calculated that General Fund property tax revenues of $4,608,000
are required for the current fiscal year. Over the past several years, the city has
collected 96 percent of all property taxes levied. The city levied property taxes in the
amount that will generate the required $4,608,000. Which of the following general
journal entries would correctly record the property tax levy? - ANSWER: Option B:
Debit: Taxes Receivable-Current $4,800,000
Credit: Allowance for Uncollectible Current Taxes $192,000
Credit: Revenues $4,608,000
Carroll City levies $200,000 of property taxes for its current fiscal year. One percent
of the tax levy is expected to be uncollectible. The city collects $170,000 of its taxes
during the year and another $25,000 during the first two months of the following
year. In addition, the city collected $3,000 of prior year taxes during the first two
months of the current fiscal year and another $2,000 during the remainder of the
current fiscal year. What amount of property tax revenues should the city report in
the government-wide financial statements for the current fiscal year? - ANSWER:
$198,000
Under GASB standards, property tax revenue is classified as an _______ ________
revenue. - ANSWER: Imposed Nonexchange
Nonprofit Entities 19th Edition by Neely & Reck
Current financial resources include: - ANSWER: Marketable Securities
Receivables
Supplies
Prepaid Items
Cash
Estimated revenue from property taxes levied for the General Fund of the Village of
Oak Park is $100,000. Based on collections in recent years, approximately 3% of
gross tax levy will never be collected. The gross levy of property taxes for this fund
should be: - ANSWER: $103,093
If the General Fund makes a 180-day loan to the Library Operating Fund, a special
revenue fund, the journal entry recorded by the General Fund will include a debit to:
- ANSWER: Interfund Loans Receivable - Current
Fund Balance Equation: - ANSWER: Total Assets - (Total Liabilities + Deferred Inflows
of Resources of the General Fund)
If one fund transfers money to another and the receiving fund is not expected to
repay the amount transferred: - ANSWER: - The transfer is non reciprocal in nature
- The transfer is considered an interfund transfer
Which of the following transactions is reported on the government-wide financial
statements of a city? - ANSWER: An enterprise fund transfers a portion of fees
charged to customers to the General Fund
If the General Fund makes a long-term loan in the amount of $10,000 to the Library
Operating Fund, a special revenue fund, the General Fund will record a journal entry
that includes a debit to: - ANSWER: Fund Balance - Unassigned
Which of the following statements about the gov-wide statement of net position and
General Fund balance sheet is correct? - ANSWER: The statement of net position
reports financial info in a more condensed manner than does the General Fund
balance sheet
True or False: Net position at the gov-wide level and fund balances at the fund level
are analogous to the stockholders' equity of an investor-owned equity - ANSWER:
False
, During the current year, Star County levied $3,000,000 in property taxes, 1.5% of
which is expected to be uncollectible. During the year, the county collected
$2,700,000 and wrote off $25,000 as uncollectible. What amount should Star County
report as property tax revenue in its government-wide statement of activities for the
current year? - ANSWER: $2,955,000
Powder City purchased a piece of equipment to be used by a department financed
by the general fund. How should Powder report the acquisition in the general fund? -
ANSWER: As an expenditure
Goods for which a purchase order had been placed at an estimated cost of $1,600
were received at an actual cost of $1,550. The journal entry in the General Fund to
record the receipt of the goods will include a: - ANSWER: Debit to Encumbrances
Outstanding for $1,600
Credit to Vouchers Payable for $1,550
Debit to Expenditures for $1,550
Which of the following properly represents the format of the government-wide
statement of net position? - ANSWER: Assets and deferred outflows - liabilities and
deferred inflows equal net position
Garden City has calculated that General Fund property tax revenues of $4,608,000
are required for the current fiscal year. Over the past several years, the city has
collected 96 percent of all property taxes levied. The city levied property taxes in the
amount that will generate the required $4,608,000. Which of the following general
journal entries would correctly record the property tax levy? - ANSWER: Option B:
Debit: Taxes Receivable-Current $4,800,000
Credit: Allowance for Uncollectible Current Taxes $192,000
Credit: Revenues $4,608,000
Carroll City levies $200,000 of property taxes for its current fiscal year. One percent
of the tax levy is expected to be uncollectible. The city collects $170,000 of its taxes
during the year and another $25,000 during the first two months of the following
year. In addition, the city collected $3,000 of prior year taxes during the first two
months of the current fiscal year and another $2,000 during the remainder of the
current fiscal year. What amount of property tax revenues should the city report in
the government-wide financial statements for the current fiscal year? - ANSWER:
$198,000
Under GASB standards, property tax revenue is classified as an _______ ________
revenue. - ANSWER: Imposed Nonexchange
