Questions from Advanced Accounting

Q: Cash of $90,000 is transferred from a city’s general

Cash of $90,000 is transferred from a city’s general fund to start construction on a police station. The city issues a bond at its $1.8 million face value. The police station is built for $1.89 millio...

Q: The City of Wilson receives a large sculpture valued at $240

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 governmentw...

Q: What are the two major divisions reported in government-wide financial

What are the two major divisions reported in government-wide financial statements? What funds are not reported in these financial statements?

Q: At the end of the current year, a government reports a

At the end of the current year, a government reports a fund balance—assigned balance of $9,000 in connection with an encumbrance. What information is being conveyed? a. A donor has given the governme...

Q: The general fund of a city reports assets of $300,

The general fund of a city reports assets of $300,000 and liabilities of $200,000 in the fund financial statements. Explain what is meant by each of the following balances: fund balance—nonspendable o...

Q: The Willingham Museum qualifies as a component unit of the City of

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?

Q: The City of Huble has a defined benefit pension plan for a

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 shou...

Q: When is an encumbrance recorded? What happens to this balance?

When is an encumbrance recorded? What happens to this balance? How are encumbrances reported in government-wide financial statements?

Q: The state awards a grant of $50,000 to the

The state awards a grant of $50,000 to the Town of Glenville. The state will pay the grant money to the town as a reimbursement for money spent on road repair. At the time of the grant, the state pays...

Q: A city issues a 60-day tax anticipation note to fund

A city issues a 60-day tax anticipation note to fund operations until taxes have been collected. What recording should it make? a. The liability should be reported in the government-wide financial st...