Complete\u00a0the following multiple choice questions in Exercise 7-16, p. 294:\t\t\t1-10\tClick\u00a0the Assignment Files tab to submit your assignment.\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tMultiple Choice.\u00a0Choose the best answer.\t\t\t\t\t\t\t\t\t1.\u00a0\u00a0\u00a0\u00a0 Within the government-wide financial statements, the column for Business-type Activities will generally include:\t\t\t\t\t\t\t\t\ta. \ufffd Internal service funds only.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 Enterprise funds only.\t\t\t\t\t\t\t\t\tc. \ufffd All internal service fund and enterprise fund transactions added together and accounted for on the accrual basis of accounting.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 All enterprise fund transactions and only the internal service fund transactions undertaken with governmental funds on the accrual basis of accounting.\t\t\t\t\t\t\t\t\t2.\u00a0\u00a0\u00a0\u00a0 Which of the following would most likely be accounted for in an internal service fund?\t\t\t\t\t\t\t\t\ta. \ufffd The city pool.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 The city’s investments, which are pooled with the county’s and the school district’s investments.\t\t\t\t\t\t\t\t\tc. \ufffd An asphalt plant used to supply the asphalt needed to resurface the city’s streets.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 Proceeds from an endowment that are used to maintain the city’s library.\t\t\t\t\t\t\t\t\t3.\u00a0\u00a0\u00a0\u00a0 Under GASB standards, the City of Parkview is required to use an enterprise fund to account for its nature center if:\t\t\t\t\t\t\t\t\ta. \ufffd It charges fees to assist in paying for the maintenance of the nature center.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 The Nature Center was originally financed through the issuance of general obligation bonds.\t\t\t\t\t\t\t\t\tc. \ufffd The ordinance that was passed to establish the nature center requires that all costs of the Nature Center be paid for by user fees.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 All of the above are true.\t\t\t\t\t\t\t\t\t4.\u00a0\u00a0\u00a0\u00a0 During 2017, the Gateway City government recorded a $15,000 transfer from the General Fund to an internal service fund; a $25,000 transfer from the General Fund to an enterprise fund; a $10,000 transfer from an enterprise fund to an internal service fund, and a $5,000 transfer from an enterprise fund to the General Fund. In the Business-type Activities column of the government-wide financial statements, Gateway City should report:\t\t\t\t\t\t\t\t\ta. \ufffd Net transfers out of $5,000.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 Net transfers in of $10,000.\t\t\t\t\t\t\t\t\tc. \ufffd Net Transfers in of $25,000.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 Net Transfers in of $35,000.\t\t\t\t\t\t\t\t\t5.\u00a0\u00a0\u00a0\u00a0 Which of the following events would generally be classified as nonoperating on an enterprise fund’s statement of revenues, expenses, and changes in net position?\t\t\t\t\t\t\t\t\ta. \ufffd Billing other funds of the same government for services.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 Loss on the sale of a piece of equipment.\t\t\t\t\t\t\t\t\tc. \ufffd Depreciation expense.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 Administrative expense.\t\t\t\t\t\t\t\t\t6.\u00a0\u00a0\u00a0\u00a0 In reviewing the accounting records of the Transportation Services Fund, an internal service fund of Douglas City, you notice that the fund uses budgetary accounts. This is most likely because\t\t\t\t\t\t\t\t\ta. \ufffd The administrators of the fund prefer to prepare a budget to use in managing the fund.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 GASB requires the use of budgetary accounts in internal service funds.\t\t\t\t\t\t\t\t\tc. \ufffd The city council must legally approve the fund’s budget.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 The accountants for the fund are unfamiliar with proper accounting procedures for a proprietary fund.\t\t\t\t\t\t\t\t\t7.\u00a0\u00a0\u00a0\u00a0 Under GASB standards, which of the following events would be classified as an investing activity on a proprietary fund’s statement of cash flows?\t\t\t\t\t\t\t\t\ta. \ufffd Interest earned on certificates of deposit held by the proprietary fund.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 Purchase of equipment for use by the proprietary fund.\t\t\t\t\t\t\t\t\tc. \ufffd Grant received to construct a building that will be used by the proprietary fund.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 All of the above would be considered investing activities for reporting purposes.\t\t\t\t\t\t\t\t\t8.\u00a0\u00a0\u00a0\u00a0 An internal service fund used for insurance activities should recognize an expense and a liability when:\t\t\t\t\t\t\t\t\ta. \ufffd A claim has been made, it is reasonably possible that a liability has been incurred, and the amount will be reasonably estimable at some time in the near future.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 A claim has not been made, but it is reasonably possible that a liability has been incurred or an asset has been impaired, and an amount can be reasonably estimated.\t\t\t\t\t\t\t\t\tc. \ufffd A claim has been made, it is probable that an asset has been impaired, and the amount will be reasonably estimable at some time in the near future.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 A claim has been made, it is probable that a liability has been incurred, and the amount can be reasonably estimated.\t\t\t\t\t\t\t\t\t9.\u00a0\u00a0\u00a0\u00a0 During the year an enterprise fund purchased $230,000 worth of equipment. The equipment was acquired with a cash down payment of $30,000 and a $200,000 loan. A partial year of depreciation on the equipment was taken in the amount of $23,000. What is the net effect of this transaction on the net position accounts of the enterprise fund?\t\t\t\t\t\t\t\t\ta. \ufffd Net investment in capital assets is increased by $7,000.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 Net investment in capital assets is increased by $30,000.\t\t\t\t\t\t\t\t\tc. \ufffd Net investment in capital assets is increased by $207,000.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 Net investment in capital assets is increased by $230,000.\t\t\t\t\t\t\t\t\t10. Tinsel Town had the following long-term liabilities at year end:\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhat amount should be recorded as long-term liabilities in the proprietary fund financial statements?\t\t\t\t\t\t\t\t\ta. \ufffd $0.\t\t\t\t\t\t\t\t\tb.\u00a0\u00a0\u00a0\u00a0 $200,000.\t\t\t\t\t\t\t\t\tc. \ufffd $250,000.\t\t\t\t\t\t\t\t\td.\u00a0\u00a0\u00a0\u00a0 $450,000.<\/p>\n","protected":false},"excerpt":{"rendered":"
Complete\u00a0the following multiple choice questions in Exercise 7-16, p. 294: 1-10 Click\u00a0the Assignment Files tab to submit your assignment. Multiple Choice.\u00a0Choose the best answer. 1.\u00a0\u00a0\u00a0\u00a0 Within the government-wide financial statements, the column for Business-type Activities will generally include: a. \ufffd Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-199462","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/199462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=199462"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/199462\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=199462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=199462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=199462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}