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ACCT 410 QUIZ 3 SPRING 2016 STUDENT NAME: DATE: T/F questions are-(Answered)

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Need assistance with the attached listed of questions.


ACCT 410 QUIZ 3 SPRING 2016

 

STUDENT NAME:

 

DATE:

 

T/F questions are worth .5 point each:

 

1. A fund in itself is a separate legal entity that is established to comply with laws that

 

require that certain transactions be segregated and accounted for as a separate "fund."

 

2. The Financial Accounting Standards Board (FASB) sets generally accepted accounting

 

principles (GAAPs) for non-government not-for-profit organizations, while government

 

non-profit organizations must follow GASB.

 

3. The size of a government?s operations does not necessarily coincide with the number of

 

funds it establishes.

 

4. The MDA section of the basic financial statements is an introduction of events that have

 

occurred in the organization as well as the possible effects of events that might happen.

 

5. The government wide financial statements are presented in addition to fund financial

 

statements and include the entity?s fiduciary activities.

 

6. The budget of an NFP organization is not integrated into the record-keeping procedures

 

and the applicable financial statements, as it is for governmental entities.

 

7. Certain revenues are precluded by GAAP from being recorded in special revenue funds.

 

Revenues that are earmarked for expenditures for major capital projects should be

 

recorded in special revenue funds.

 

8. NFP organizations adjust the value of their long-term debt for discounts or premiums

 

on issuance of the debt, whereas governments list their long-term debt in the General

 

Long-term Liabilities accounts at face value even though it may have been issued at a

 

discount or at a premium.

 

9. Because they use full accrual accounting, NFPs account for depreciation. There is an

 

exception, however, in regard to certain assets that have collection value which are

 

preservable in their current condition, and have a claim on resources sufficient to

 

preserve them indefinitely.

 

10. Proprietary funds use the accrual basis of accounting and the economic resources

 

measurement focus. Accordingly, proprietary funds recognize revenues when they are

 

earned and recognize expenses when a liability is incurred.

 

11. The basis of accounting describes when transactions are recorded, not what

 

transactions are recorded. Accordingly, allocations such as depreciation and

 

amortization are not recorded as expenditures of governmental funds, nor are longterm liabilities.

 

12. Governmental funds use the current financial resources measurement focus, which

 

recognizes as expenditures those costs that result in a decrease in current financial

 

resources.

 

13. Routine employer contributions from the general fund and internal services billings

 

from the enterprise fund are treated as transfers between funds.

 


 

ACCT 410 QUIZ 3 SPRING 2016

 

STUDENT NAME:

 

DATE:

 

14. The City of Virginia Beach issues $5 million in revenue bonds on January 1 to build a

 

water line for the water enterprise fund. Interest is payable every six months. What

 

entry is made for interest expense as of June 30th?

 

A. 0

 

B. 60,000

 

C. 45,000

 

D. 30,000

 

15. The GASB requires each governmental entity to prepare a CAFR.

 

16. The budget for Virginia Beach authorizes expenditures of 12 million and forecasts

 

revenues of 10 million for 2016. The entry to record the budget in the General Fund is

 

as follows (true or false).

 

Estimated Revenues (debit)

 

10 million

 

Expenditures (debit)

 

2 million

 

Appropriations (credit)

 

12 million

 

17. Which of the following is an example of a deferred outflow of resources:

 

A. Costs to acquire rights to future revenues

 

B. Grant amounts received in advance of meeting timing requirements.

 

C. Proceeds from the sale of future revenues

 

D. Deferred gain from a sale and leaseback transaction.

 

18. GASBS 34 updated the types of fiduciary funds to include the following:

 

A. Pension (and other employee benefit) trust funds

 

B. Investment trust funds

 

C. Private-purpose trust funds

 

D. Enterprise funds

 

19. Identify 4 main (the big) differences between fund accounting and proprietary

 

accounting.

 

20. How are the 4 main differences (refer to question 19) reflected in the fund verses the

 

government financial statements and why?

 


 

 

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