Questions from Accounting for Government and Non-Profit

Q: The following information was abstracted from a note, headed “Interfund

The following information was abstracted from a note, headed “Interfund Transactions,” to the financial statements of Independence, Missouri. Interfund Charges for...

Q: Highbridge County imposes a motor fuel tax to finance road maintenance.

Highbridge County imposes a motor fuel tax to finance road maintenance. It therefore accounts for all road maintenance in a special revenue fund, the entire fund balance of which is legally restricted...

Q: As indicated in Chapter 2, the GASB defines assets as “

As indicated in Chapter 2, the GASB defines assets as “resources with present service capacity that the government presently controls.” It explains that present service capacity of an asset is its cap...

Q: A state government provided several grants to school districts and local governments

A state government provided several grants to school districts and local governments during its fiscal year ending August 31. 1. On August 1, 2018, it announced a $2 million grant to a local school di...

Q: On what basis does the government account for its inventories (purchases

On what basis does the government account for its inventories (purchases or consumption)? Does the City maintain a “fund balance‐nonspendable” amount for inventories?

Q: A city is weighing the costs and benefits of a new convention

A city is weighing the costs and benefits of a new convention center. The center would be accounted for in an enterprise fund. It would cost $20 million and would be funded from the proceeds of 20‐yea...

Q: Select the best answer. Assume that Nolanville’s fiscal year

Select the best answer. Assume that Nolanville’s fiscal year ends on December 31. 1. Nolanville’s payroll for one of its departments is $15,000 per week. It pays its employees on the Thursday of the...

Q: The Eaton School District engaged in the following transactions during its fiscal

The Eaton School District engaged in the following transactions during its fiscal year ending August 31, 2018. • It established a purchasing department, which would be accounted for in a new internal...

Q: A city prepares its budget on a cash basis. For each

A city prepares its budget on a cash basis. For each of the following indicate the amount (if any) of an expenditure/expense that the city would be recognize in (1) its budget, (2) its fund statemen...

Q: The Boyd School District began a recent fiscal year with $3

The Boyd School District began a recent fiscal year with $3,000 of supplies in stock. During its fiscal year, it engaged in the following transactions relating to supplies: • It purchased supplies at...