ACC/548 Final Exam

21

The FASB has the authority to set accounting standards for all of the following organizations EXCEPT:

educational foundations established to support a private college or university

public colleges

private colleges

for profit proprietary schools

22

A local government was awarded a federal grant in the amount of $600,000 to provide for a summer employment program for young people. The grant was a reimbursement grant and was awarded on April 30, 2009. The local government expended the resources as follows: June, 2009, $220,000; July 2009, $200,000; August, 2009, $180,000. The federal government provided the funds the following months. The local government would recognize revenues for the fiscal year ended June 30, 2009 in which amount?

$ – 0 –

$600,000

$220,000

$420,000

23

To compute the net debt per capita, a user of financial statements would need to look at (in the CAFR):

The debt and the amount available to pay that debt in the governmental funds Balance Sheet and the population from the statistical section

The debt in the government-wide Statement of Net Assets, the amount available to pay that debt in the governmental funds Balance Sheet and the population from the statistical section

The debt in the governmental funds Balance Sheet, the amount available in the government-wide Statement of Net Assets and the population from the statistical section

All three items from the government-wide Statement of Net Assets

24

All the following choices would be considered a special-purpose government for financial reporting purposes EXCEPT:

a public school system

an art museum

a public hospital

a county board of supervisors

25

Under the terms of the Single Audit Act and its amendments, what percentage of federal awards expenditures must be selected for audit?

High Risk Auditee: 50%; Low Risk Auditee: 0%

High Risk Auditee: 50%; Low Risk Auditee: 25%

High Risk Auditee: 100%; Low Risk Auditee: 25%

High Risk Auditee: 100%; Low Risk Auditee: 50%

26

Under GASB rules for the financial reporting entity:

bounties are component units of the state government

blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements

component units are included if the primary government is financially accountable for their operations

component units must be reported in columns (discrete presentation) separate from the funds of a primary government

27

Which of the following choices regarding the proprietary fund financial statements is TRUE?

The Statement of Cash Flows may be prepared using either the direct or the indirect methods

Statements include the Statement of Net Assets (or Balance Sheet), Statement of Revenues, Expenses and Changes in Fund Net Assets and Statement of Cash Flows

The Statement of Net Assets (or Balance Sheet) reflects equity as contributed equity and retained earnings

Normally, reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements

28

GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, applies to all of the following investment types EXCEPT:

external investment pools

investments of pension funds

open-end mutual funds

debt securities

29

The City of Greenville had a balance in the Reserve for Encumbrances account at the end of 2008 in the amount of $30,000. During 2009, all purchase orders related to the $30,000 were filled and the invoice amount was $30,500. Which of the following would be TRUE regarding the Statement of Revenues, Expenditures and Changes in fund balances for 2009? (assume encumbrances do not lapse)

The amount shown for expenditures would include only the $500

The amount shown for expenditures would include the $30,500

The amount shown for expenditures would include only the $30,000

The amount shown for expenditures would not include items related to orders placed in 2008

30

The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan and a statewide agency plan. The city would include in its CAFR financial statements for:

the locally administered plan plus the statewide agency plan

all three plans

both statewide plans