13 Jan Question 27 What provision in

Module 1 discussion

What is the primary difference between modified accrual basis accounting and standard accrual basis accounting? Is the use of modified accrual basis accounting appropriate for government agencies? If so why? If not, what type of accounting is appropriate for government agencies?

Module 2 discussion

Are governmental fund financial statements sufficient for users seeking information about budgetary control and operational accountability? If so, why? If not, what type of information is needed to properly assess the effectiveness of the agency’s budgetary control that governmental fund financial statements do not provide?

Module 3 discussion

Why would a state or local government establish a capital project fund? What type of project might be considered a capital project? Could operating functions ever be funded with capital projects funds? How could these administrative controls assuring that funds not be shifted between funds be circumvented? Should the managers ever compromise their Integrity by transferring money between funds however well intended that transfer might be?

Module 4 discussion

What is the primary difference between agency funds and trust funds? What are the primary applications of each and how do the administrators of these funds apply Benedictine Core values of responsible stewardship and integrity in their management of the resources in these funds?

Module 5 discussion

The full text of the summary of GASB Statement 34 can be found at: http://www.gasb.org/st/summary/gstsm34.html.

What are the most important changes in reporting requirements found in this statement? Why was it necessary for GASB to publish this statement?

Module 6 discussion

Compare and contrast the institutional process used by FASAB for establishing generally accepted accounting principles for the federal government with the process used by FASB for developing accounting standards.

Module 7 discussion

Discuss the differences between a donor imposed restriction and a conditional promise to give. How are these two items reported in the financial statements? Are donor disclosures required in the Notes? If so should they be or should the privacy of donors be honored?

Module 8 discussion

What value to a potential donor of a not-for-profit organization (NFPO) is the entity’s program service’s ratios? Generally the salaries of the employees of government agencies are public information. Should NFPO management and staff salaries be disclosed in the Notes or by other public disclosure?

Module 1 Problem Set

Each module, you will be assigned exercises and problems from the textbook. Complete the assigned exercises and problems and submit your answers as a single Word document.

Complete the following from Chapter 2

Exercise 2-4

Problems 2-4, 2-7 and 2-12

You must submit your assignment to the appropriate course Assignment Box no later than Sunday 11:59 PM EST/EDT. (This Assignment Box maybe linked to Turnitin.)

Module 2 Problem Set

Each module, you will be assigned exercises and problems from the textbook. Complete the assigned exercises and problems and submit your answers as a single Word document.

Complete the following from Chapter 3

Exercise 3-5

Problems 3-4 and 3-5

Complete the following from Chapter 4

Exercise 4-6

Problem 4-4

You must submit your assignment to the appropriate course Assignment Box no later than Sunday 11:59 PM EST/EDT. (This Assignment Box basket is linked to Turnitin.)

Module 3 Problem Set

Each module, you will be assigned exercises and problems from the textbook. Complete the assigned exercises and problems and submit your answers as a single Word document.

Complete the following from Chapter 5

Exercise 5-1

Problem 5-2

Complete the following from Chapter 6

Exercise 6-3

Problems 6-8 and 6-13

Module 4 Problem Set

Each module, you will be assigned exercises and problems from the textbook. Complete the assigned exercises and problems and submit your answers as a single Word document.

Complete the following from Chapter 7

Exercise 7-5

Problem 7-3

Complete the following from Chapter 8

Exercise 8-8

Problem 8-1

You must submit your assignment to the appropriate course Assignment Box no later than Sunday 11:59 PM EST/EDT. (This Assignment Box maybe linked to Turnitin.)

Module 5 Problem Set

Each module, you will be assigned exercises and problems from the textbook. Complete the assigned exercises and problems and submit your answers as a single Word document.

Complete the following from Chapter 9

Exercise 9-1

Problems 9-1 and 9-3

Complete the following from Chapter 10

Exercise 10-3

Problem 10-2

You must submit your assignment to the appropriate course Assignment Box no later than Sunday 11:59 PM EST/EDT. (This Assignment Box maybe linked to Turnitin.)

Module 6 Problem Set

Each module, you will be assigned exercises and problems from the textbook. Complete the assigned exercises and problems and submit your answers as a single Word document.

Complete the following from Chapter 11

• Exercises 11-1, 11-2, and 11-4

• Problem 11-1

You must submit your assignment to the appropriate course Assignment Box no later than Sunday 11:59 PM EST/EDT. (This Assignment Box maybe linked to Turnitin.)

Module 7 Problem Set

Each module, you will be assigned exercises and problems from the textbook. Complete the assigned exercises and problems and submit your answers as a single Word document.

Complete the following problems from Chapter 12

Exercises 12-3 and 12-4

Problem 12-3

Complete the following problems from Chapter 13

Exercise 13-4

Problem 13-4

You must submit your assignment to the appropriate course Assignment Box no later than Sunday 11:59 PM EST/EDT. (This Assignment Box maybe linked to Turnitin.)

Module 8 Problem Set

Each module, you will be assigned exercises and problems from the textbook. Complete the assigned exercises and problems and submit your answers as a single Word document.

Complete the following problems from Chapter 14

Exercise 14-1

Problem 14-1

Complete the following problems from Chapter 15

Exercises 15-9, 15-14 and 15-17

You must submit your assignment to the appropriate course Assignment Box no later than Sunday 11:59 PM EST/EDT. (This Assignment Box maybe linked to Turnitin.)

Module 7 research paper

Your Research Paper is due in this module. The paper should discuss a topic related to fund or non-profit accounting that will be covered in the course. It should cover important developments in the topic reported in the academic literature and not simply restate material presented in the text. The paper should be a minimum of 1750 words and no more than 2,500. The paper should be written using APA style and include a minimum of one reference citation.

Module 4 midterm

Question 1 Which of the following is properly reported as a liability of the General Fund?

Question 1 options:

Accounts payable

Both b and c are correct

General obligation bonds payable

Tax anticipation notes payable

Question 2 Debt service funds are used to record:

Question 2 options:

Neither principal nor interest payments of debt issues.

Only interest payments on debt issues.

Both principal and interest payments of debt issues.

Only principal payments of debt issues.

Question 3 When a vehicle is ordered by a government, the purchase order should be recorded in the General Fund as a debit to

Question 3 options:

Encumbrances

Appropriations

Equipment

Expenditures

Question 4Internal service funds should be used only if

Question 4 options:

Neither A nor B.

The reporting government provides services primarily to external participants.

The reporting government is the predominant participant in the activity.

Either A and B.

Question 5 The following cash transactions were among those reported by Crawford County’s Water and Sewer Enterprise Fund for the year: Proceeds from sale of revenue bonds for construction: $5,000,000Cash received from customers: $3,000,000Capital contributed by developers: $1,000,000In the Water and Sewer Enterprise Fund’s statement of cash flows for the year ended December 31, what amount should be reported as cash flows from capital and related financing activities?

Question 5 options:

$6,000,000

$9,000,000

$8,000,000

$5,000,000

Question 6 What amount of the following items should be accounted for in an enterprise fund?

Warehouse equipment used to store supplies for delivery to all city departments and agencies on a cost-reimbursement basis. ————— $350,000

Equipment used for supplying electric power to residents. ————— $2,100,000

Receivables for completedsidewalks to be paid for in installments by affected property owners. Construction was financed by special assessment bonds for which the town has no liability. ————— $1,760,000

Cash received from federal government, dedicated to highway maintenance, that must be accounted for in a spearate fund. ————— $1,640,000

Question 6 options:

$350,000

$1,760,000

$1,640,000

$2,100,000

Question 7 Which of the following funds is a governmental fund-type?

Question 7 options:

Internal service fund

Permanent fund

Enterprise fund

Private-purpose trust fund

Question 8 Which of the following resource inflows would be recorded as a revenue of a debt service fund?

Question 8 options:

Property taxes levied by the debt service fund for debt service purposes.

Receipt of the premium on a new bond issue.

Transfer of the residual equity of a capital project from a capital projects fund to the debt service fund.

Taxes collected by the General Fund and transferred to the debt service fund.

Question 9 The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when:

Question 9 options:

Collected in cash.

Earned.

Measurable and available.

Authorized by the budget ordinance.

Question 10 Which of the following is the most reliable means of distinguishing a trust relationship from an agency relationship for purposes of deciding which type of fiduciary fund should be used?

Question 10 options:

Examine the wording of any agreements to determine if the word “trust” or “agency” is used

Examine the amount of money involved; agency relationships generally involve smaller amounts

Examine the length of time assets will be held; trust relationships are generally in existence longer than agency relationships

Examine the aggregate of factors, such as the enactment that brought the relationship into existence, statutes, regulations, etc, that help define the nature of the relationship

Question 11 Using the information below, what amount should be accounted for in a special revenue fund or funds?

Warehouse equipment used to store supplies for delivery to all city departments and agencies on a cost-reimbursement basis

$ 300,000

Equipment used for supplying electric power to residents

1,750,000

Receivables for completed sidewalks to be paid for in installments by affected property owners. Construction was financed by special assessment Bonds for which the town has no liability.

1,500,000

Cash received from federal government, dedicated to highway maintenance, that must be accounted for in a separate fund

1,800,000

Question 11 options:

$5,350,000

$3,300,000

$2,100,000

$1,800,000

Question 12 Which of the following funds of a government uses the modified accrual basis of accounting?

Question 12 options:

Internal service

Private-purpose trust fund

Capital projects

Enterprise

Question 13 The County Commission of Benton County adopted its General Fund budget for the year ending June 30, comprising estimated revenues of $3,200,000 and appropriations of $2,900,000. Benton County utilizes the budgetary accounts required by GASB standards. The budgeted excess of estimated revenues over appropriations will be recorded as:

Question 13 options:

A credit to Surplus Revenues, $300,000.

A memorandum entry only.

A credit to Budgetary Fund Balance, $300,000.

A debit to Estimated Excess Revenues, $300,000.

Question 14 Which of the following steps in the acquisition of goods and services by an activity accounted for by the General Fund occurs first?

Question 14 options:

Disbursement.

Appropriation.

Encumbrance.

Expenditure.

Question 15 Which of the following transactions is classified as an exchange transaction rather than a nonexchange transaction?

Question 15 options:

Bequest left to the city by a wealthy citizen

State grant to conduct an after school program for children

Property taxes

Fees charged by a municipal airport

Question 16 The Reserve for Encumbrances account is properly termed a:

Question 16 options:

Long-term liability.

Current liability if paid within a year; otherwise a long-term debt.

Budgetary account.

Reservation of fund balance.

Question 17 On May 1, Yuca City was notified of approval of a $300,000 federal operating grant, payable on a reimbursement basis as the city expends resources for the intended purpose of the grant. As of May 1, no expenditures had been made for grant purposes. The journal entry to record approval of this grant will include

Question 17 options:

A debit to grants receivable in the amount of $300,000

No journal entry will be made until eligibility requirements are met by expending resources for the authorized purpose(s)

A credit to revenues in the amount of $300,000

A credit to deferred revenues in the amount of $300,000

Question 18 The modified accrual basis of accounting applicable to governmental fund types requires that revenues be recognized when

Question 18 options:

Authorized by the budget ordinance

Earned

Collected in cash

Measurable and available

Question 19 In financial reporting for proprietary funds and at the government-wide level, the employer’s pension expense for the period is equal to:

Question 19 options:

The change in net pension obligation.

Annual required contribution.

The employer’s contribution.

Annual pension cost.

Question 20 The Governmental Accounting Standards Board is assigned responsibility for setting accounting and financial reporting standards for:

Question 20 options:

State and local government and all not-for-profit organizations.

State and local government entities and governmentally-related units and agencies, such as utilities, authorities, hospitals, and colleges and universities.

Governments; such as federal agencies, states, cities, counties, villages, and townships.

Not-for-profit organizations.

Question 21 The account “Interfund Transfers In” would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a (an)

Question 21 options:

Other financing source

Revenue

Current liability

Other financing use

Question 22 At the end of fiscal 2014, the city of Greenwood had outstanding encumbrances of $15,000. Although the city follows a policy of allowing outstanding encumbrances to lapse, it plans to honor the related purchase orders in fiscal 2015. At year end the city’s accountant should take which of these actions?

Question 22 options:

Credit budgetary fund balance

Credit nonspendable fund balance

Credit assigned fund balance

Credit appropriations

Question 23 The city of Superior’s fiscal year ends on December 31. On July 1, 2011 Superior issues $1,000,000 of 8%, 10-year term bonds with semi-annual interest payments due on July 1 and January 1 each year. The General Fund transferred $100,000 to the debt service fund on July 1, 2011 to pay for interest to bondholders for the year. The debt service fund invests the money at an annual rate of 10%. What is the amount of total assets in the debt service fund at the end of 2011?

Question 23 options:

$965,000

$65,000

$1,005,000

$105,000

Question 24 When a cash and investment pool of a certain city was established, the debt service fund transferred investments to the pool having a cost of $3,000,000 but a current fair market value of $3,100,000. To record this transaction, the journal entry made by the debt service fund will include:

Question 24 options:

A debit to Equity in Pooled Cash and Investments in the amount of $3,100,000

A credit to Investments in the amount of $3,000,000

All of the above

A credit to Revenues–Change in Fair Value of Investments in the amount of $100,000

Question 25 The Financial Accounting Standards Board has the responsibility for setting accounting and financial reporting standards for:

Question 25 options:

All not-for-profit organizations that are nongovernmental and business entities.

All special purpose governments.

All federal government agencies.

All not-for-profit organizations.

Question 26 Explain the difference between measurement focus and basis of accounting. Also, explain the difference between the economic resources measurement focus and the current financial resources measurement focus, as well as the difference between the accrual and modified accrual bases of accounting. Which funds and government-wide activities use each focus and each basis?

Question 27 What provision in a bond indenture or bond ordinance is necessary for long-term debt to be classified as a general obligation? Are all obligations properly reported as general long-term debt evidenced by bonds or notes? If not, give several examples of general long-term debt not evidenced by bonds or notes.

Question 28 Describe the difference between exchange and nonexchange transactions and discuss the rules for recognition of revenues and expenses/expenditures for each type of transaction.

Question 29 Under the GASB accounting and financial reporting standards for risk financing activities, how does an internal service fund used for risk financing determine the appropriate claims expense and liability to be recognized for a period?

Question 30 One argument advanced in favor of financing with term bonds secured by some sort of a sinking fund is that earnings on investments held by the debt service fund will reduce the amount of support required from other sources. What is your opinion of the validity of this argument?