equipment is used for general operations

Question-1

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for general operations and is reported in the general fund.

What is reported in the general fund’s operating statement, related to this equipment, in 2015?

  1. Expense of $16,000,000
  2. The equipment is not reported in the operating statement
  3. Expense of $2,000,000
  4. Expenditure of $16,000,000

Question-2

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for general operations and is reported in the general fund.

What is reported in the general fund’s operating statement, related to this equipment, in 2018?

  1. Revenue, $9,000,000
  2. Other financing source, $9,000,000
  3. Gain on sale, $5,000,000
  4. Loss on sale, $7,000,000

Question-3

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for a parking garage and is reported in an enterprise fund.

What is reported in the enterprise fund’s operating statement, related to this equipment, in 2015?

  1. Expense of $2,000,000
  2. The equipment is not reported in the operating statement
  3. Expenditure of $16,000,000
  4. Expense of $16,000,000

Question-4

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for a parking garage and is reported in an enterprise fund.

What is reported in the enterprise fund’s operating statement, related to this equipment, in 2021?

  1. Loss on sale, $7,000,000
  2. Revenue, $9,000,000
  3. Other financing source, $9,000,000
  4. Gain on sale, $5,000,000

Question-5

A general fund uses the consumption method to record inventories. Beginning inventories are $10,000, purchases are $600,000, and ending inventories are $12,000.

The general fund records an end-of-year adjusting entry that:

  1. Credits nonspendable fund balance by $12,000
  2. Debits unassigned fund balance by $2,000
  3. Debits nonspendable fund balance by $12,000
  4. Debits nonspendable fund balance by $2,000

Question-6

A general fund’s budgeted expenditures for the year are called:

  1. Estimated expenditures
  2. Encumbrances
  3. Fund balance deficits
  4. Appropriations

Question-7

A government always has only one

  1. Capital projects fund.
  2. Special revenue fund.
  3. Enterprise fund.
  4. General fund.

Question-8

Accumulation of money to be used to pay the interest on general obligation bonds is reported in a:

  1. Permanent fund.
  2. Debt service fund.
  3. Special revenue fund.
  4. Custodial fund.

Question-9

Below is the preclosing trial balance of a county’s general fund at year-end:

DrCr
Cash$       45,000
Property taxes receivable180,000
Due from other funds25,000
Estimated revenues2,300,000
Operating expenditures1,963,000
Capital outlay120,000
Debt service: Principal50,000
Debt service: Interest140,000
Transfers out29,000
Allowance for uncollectible property taxes$    150,000
Accounts payable     45,000
Due to other funds22,000
Appropriations2,275,000
Estimated other financing uses30,000
Property tax revenues2,295,000
Fund balance—unassigned_________     35,000
$ 4,852,000$ 4,852,000

What was the credit balance in fund balance – unassigned at the beginning of the year, before the budget entry was made?

  1. $25,000
  2. $40,000
  3. $30,000
  4. $35,000

Question-10

Below is the preclosing trial balance of a county’s general fund at year-end:

DrCr
Cash$       45,000
Property taxes receivable180,000
Due from other funds25,000
Estimated revenues2,300,000
Operating expenditures1,963,000
Capital outlay120,000
Debt service: Principal50,000
Debt service: Interest140,000
Transfers out29,000
Allowance for uncollectible property taxes$    150,000
Accounts payable     45,000
Due to other funds22,000
Appropriations2,275,000
Estimated other financing uses30,000
Property tax revenues2,295,000
Fund balance—unassigned_________     35,000
$ 4,852,000$ 4,852,000

What is the year-end balance in fund balance—unassigned?

  1. $62,000
  2. $33,000
  3. $11,000
  4. $28,000

Question-11

Below is the preclosing trial balance of a county’s general fund at year-end:

DrCr
Cash$       45,000
Property taxes receivable180,000
Due from other funds25,000
Estimated revenues2,300,000
Operating expenditures1,963,000
Capital outlay120,000
Debt service: Principal50,000
Debt service: Interest140,000
Transfers out29,000
Allowance for uncollectible property taxes$    150,000
Accounts payable     45,000
Due to other funds22,000
Appropriations2,275,000
Estimated other financing uses30,000
Property tax revenues2,295,000
Fund balance—unassigned_________     35,000
$ 4,852,000$ 4,852,000

On the general fund operating statement, what is the total for other financing uses?

  1. $29,000
  2. $-0-
  3. $79,000
  4. $30,000

Question-12

Below is the preclosing trial balance of a county’s general fund at year-end:

DrCr
Cash$       45,000
Property taxes receivable180,000
Due from other funds25,000
Estimated revenues2,300,000
Operating expenditures1,963,000
Capital outlay120,000
Debt service: Principal50,000
Debt service: Interest140,000
Transfers out29,000
Allowance for uncollectible property taxes$    150,000
Accounts payable     45,000
Due to other funds22,000
Appropriations2,275,000
Estimated other financing uses30,000
Property tax revenues2,295,000
Fund balance—unassigned_________     35,000
$ 4,852,000$ 4,852,000

The general fund’s year-end balance sheet will report total liabilities of:

Select one:

  1. $195,000
  2. $ 67,000
  3. $ 45,000
  4. $217,000

Question-13

Below is the preclosing trial balance of a county’s general fund at year-end:

DrCr
Cash$       45,000
Property taxes receivable180,000
Due from other funds25,000
Estimated revenues2,300,000
Operating expenditures1,963,000
Capital outlay120,000
Debt service: Principal50,000
Debt service: Interest140,000
Transfers out29,000
Allowance for uncollectible property taxes$    150,000
Accounts payable     45,000
Due to other funds22,000
Appropriations2,275,000
Estimated other financing uses30,000
Property tax revenues2,295,000
Fund balance—unassigned_________     35,000
$ 4,852,000$ 4,852,000

On the general fund operating statement, what are total expenditures?

  1. $2,223,000
  2. $2,273,000
  3. $2,103,000
  4. $2,302,000

Question-14

On January 1, 2020, a county government sends out property tax bills in the amount of $100,000,000. Of this amount, $15,000,000 is estimated to be uncollectible. During the year, $88,000,000 is collected. Of the $12,000,000 in uncollected taxes at December 31, 2020, $3,000,000 is expected to be collected within the next 60 days, and $1,800,000 is expected to be collected after 60 days. The rest are estimated to be uncollectible. In 2021, $10,000,000 is collected related to 2020 tax bills, and the remaining uncollected 2020 taxes are written off.

What is the balance in the allowance for uncollectible taxes on the December 31, 2020 general fund balance sheet?

Select one:

  1. $ 7,200,000
  2. $ 9,000,000
  3. $10,200,000
  4. $12,000,000

Question-15

Which item below would be reported in the “other financing sources and uses” section of the operating statement of the general fund?

  1. Payment of interest on bonds
  2. Transfers to other funds
  3. Payment of principal on bonds
  4. Capital outlay

Question-16

Which statement below best describes the GAAP hierarchy in state and local government accounting?

  1. GASB Statements and AICPA Industry Audit and Accounting Guides are considered authoritative.
  2. Only AICPA Industry Audit and Accounting Guides are considered authoritative.
  3. GASB Statements, GASB Technical Bulletins, Implementation Guides, and GASB-approved AICPA literature are considered authoritative.
  4. Only GASB Statements are considered authoritative.

Leave a Reply

Your email address will not be published.