Questions from Accounting for Government and Non-Profit

Q: Select the best answer. 1. Riverview City received

Select the best answer. 1. Riverview City received a gift of $1 million. The sum is to be maintained as an endowment, with income used to preserve and improve the city’s jogging trails. The $1 millio...

Q: Select the best answer. 1. A city’s annual

Select the best answer. 1. A city’s annual pension expense represents a. Actual cash contributions to the pension trust fund b. Required payments to retired employees per the terms of the pension pla...

Q: Christopher City received a contribution of $520,000 to provide

Christopher City received a contribution of $520,000 to provide scholarships to the children of deceased city employees. The donor stipulated that all income, including both realized and unrealized in...

Q: The McCracken County Humane Society (MCHS), which is part of

The McCracken County Humane Society (MCHS), which is part of a county’s reporting entity, established a permanent fund to provide support for its pet neutering program. As of the start of the year, th...

Q: Hayward City maintains a defined benefit pension plan for its employees.

Hayward City maintains a defined benefit pension plan for its employees. In a recent year the city contributed $5 million to its pension fund. However, its annual pension cost as calculated by its act...

Q: In 2015, the Rubin Center for the Arts received a $

In 2015, the Rubin Center for the Arts received a $2 million endowment, the income of which was to be used to support local artists. The center invested the proceeds in securities. In 2015, owing to i...

Q: The Nebraska Institute of Science (NIS) recently acquired a commercial

The Nebraska Institute of Science (NIS) recently acquired a commercial office building as an investment property. The cost was $12 million, and its economic life was expected to be 15 years. Upon acqu...

Q: Does the government contribute to one or more pension plans? Are

Does the government contribute to one or more pension plans? Are they defined benefit or defined contribution plans? If they are defined benefit plans, are they single employer (maintained by the gove...

Q: The director of the internal audit department of a midsize city received

The director of the internal audit department of a midsize city received a memo from a member of the city council that included the following: I am certain that you have followed recent press reports...

Q: Does the government report pension expenses or expenditures? If so,

Does the government report pension expenses or expenditures? If so, in which fund or funds?