Questions from Advanced Accounting

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 inconnection with an encumbrance. What information is being conveyed? a. A donor has given the government...

Q: A new partner enters a partnership and goodwill is calculated and credited

A new partner enters a partnership and goodwill is calculated and credited to the original partners.How is the specific amount of goodwill assigned to these partners?

Q: A government buys equipment for its police department at a cost of

A government buys equipment for its police department at a cost of $54,000. Which of the followingis not true? a. Equipment will increase by $54,000 in the government-wide financial statements. b. Dep...

Q: A city acquires supplies for its fire department and uses the consumption

A city acquires supplies for its fire department and uses the consumption method of accounting.Which of the following statements is true for the fund statements? a. An expenditures account was debited...

Q: An income tax is an example of which of the following?

An income tax is an example of which of the following? a. Derived tax revenue. b. Imposed nonexchange revenue. c. Government-mandated nonexchange revenue. d. Voluntary nonexchange transaction.

Q: The state government passes a law requiring localities to upgrade their water

The state government passes a law requiring localities to upgrade their water treatment facilities.The state then awards a grant of $500,000 to the Town of Midlothian to help pay for this cost. Whatty...

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 moneyto the town as a reimbursement for money spent on road repair. At the time of the grant, the statepays $...

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. Whatrecording should it make? a. The liability should be reported in the government-wide financial stat...

Q: A city issues five-year bonds payable to finance construction of

A city issues five-year bonds payable to finance construction of a new school. What recordingshould be made? a. Report the liability in the government-wide financial statements; show an other financin...

Q: The City of Dylan issues a 10-year bond payable of

The City of Dylan issues a 10-year bond payable of $1 million at face value on the first day of Year1. Debt issuance costs of $10,000 are paid on that day. For government-wide financial statements,how...