For each of the following, indicate whether the statement is true or false and include a...

For each of the following, indicate whether the statement is true or false and include a brief explanation for your answer.

a.A pension trust fund appears in the government-wide financial statements but not in the fund financial statements.

b.Permanent funds are included as one of the governmental funds.

c.A fire department placed orders of $20,000 for equipment. The equipment is received but at a cost of $20,800. In compliance with requirements for fund financial statements, an encumbrance of $20,000 was recorded when the order was placed, and an expenditure of $20,800 was recorded when the order was received.

d.The government reported a landfill as an enterprise fund. At the end of Year 1, the government estimated that the landfill will cost $800,000 to clean up when it is eventually full. Currently, it is 12 percent filled. At the end of Year 2, the estimation was changed to $860,000 when it was 20 percent filled. No payments are due for several years. Fund financial statements for Year 2 should report a $76,000 expense.

e.A city reports a landfill in the general fund. At the end of Year 1, the government anticipated the landfill would cost $900,000 to clean up when it is full and reported that it was 11 percent filled. At the end of Year 2, the estimates were changed to $850,000 and 20 percent filled. No payments are due for several years. Government-wide financial statements for Year 2 should report a $71,000 expense.

f.A lease for a computer (that has a 6-year life) is signed on January 1, Year 1, with six annual payments of $10,000. The police department will use the computer. The first payment is to be made immediately. The present value of the $60,000 in cash flows is $39,000 based on a 10 percent rate. Fund financial statements for Year 1 should report total expenditures of $10,000.

g.An agency fund has neither revenues nor expenditures but reports expenses.

h.A lease for a computer (that has a 6-year life) is signed on January 1, Year 1, with six annual payments of $10,000. The computer is to be used by the police department. The first payment is to be made immediately. The present value of the $60,000 in cash flows is $39,000 based on a 10 percent rate. Government-wide financial statements for Year 1 should report expenses of $9,400.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

For each of the following, indicate whether the statement is true or false and include a...

For each of the following, indicate whether the statement is true or false and include a brief explanation for your answer. a.A pension trust fund appears in the government-wide financial statements but not in the fund financial statements. b.Permanent funds are included as one of the governmental funds. c.A fire department placed orders of $20,000 for equipment. The equipment is received but at a cost of $20,800. In compliance with requirements for fund financial statements, an encumbrance of $20,000 was...

True/False: Indicate whether the following statement is true or false. If it is false, indicate the...

True/False: Indicate whether the following statement is true or false. If it is false, indicate the reason. If it is true, indicate what makes it true. Just stating true or false will not earn any points. "It is not possible to have concave preferences."

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and briefly explain your answer. If your answer depends on any assumptions, state them clearly. Use graphs or equations to illustrate your answer whenever it is helpful. 1. A worker should never trust an implicit contract with an employer that pays them less than their marginal product when they first join the firm, but more than their marginal product after many years with the firm,...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and briefly explain your answer. If your answer depends on any assumptions, state them clearly. Use graphs or equations to illustrate your answer whenever it is helpful. 11. In efficiency wage models, employers take the market wage as given, and then choose the level of effort at which employees are required to work. 12. Mandatory retirement only makes sense in a delayed compensation (or underpayment-overpayment)...

Read each of the following statements, and indicate whether each statement is true or false. A:...

Read each of the following statements, and indicate whether each statement is true or false. A: Firms will raise all the common equity they can from retained earnings before issuing new common stock, because capital from retained earnings is less expensive than capital raised from issuing new common stock. B: The flotation costs associated with the sale of debt securities are greater than those associated with new common stock issues C: Firms raise capital from retained earnings only when they...

3. Indicate whether each of the following statement is true or false and why: a. Product...

3. Indicate whether each of the following statement is true or false and why: a. Product standard cost data are often utilized by managers and analysts in departments other than the accounting department. b. Standard cost accounting systems are expensive to operate. c. Wage rate variance information is less useful to a production manager than labor efficiency variance information. d. When standards cost are set tight and inventories are growing, a standard cost accounting systems tends to report lower operating...

Indicate whether each of the following statement is True or False. g) A household purchase of...

Indicate whether each of the following statement is True or False. g) A household purchase of new housing constitutes investment expenditure. h) The larger the marginal propensity to consume the smaller the multiplier. i) Higher consumer confidence in the economy causes a downward movement along aggregate demand curve. j) The higher the interest elasticity of investment the flatter the IS curve. k) The lower the interest sensitivity of money demand the steeper the LM curve. l) To rescue a country’s...

True or False. Indicate whether the statement is true or false. If false, explain in the...

True or False. Indicate whether the statement is true or false. If false, explain in the space provided the statement why it is false, or simply correct the statement. Smooth muscle contraction is regulated by the autonomic nervous system. During exercise, the sympathetic nerves that innervate the smooth muscles of bronchioles and arterioles regulate the contraction of these smooth muscles to increase ventilation and cardiac output. 2. Multiple choice: Choose one best statement. An infant born prematurely has neonatal respiratory...

Indicate whether each of the following statements is true or false. If false, indicate how to...

Indicate whether each of the following statements is true or false. If false, indicate how to correct the statement. a. The amount reported for accumulated other comprehensive income (AOCI) on the balance sheet must be a positive amount consistent with all other stockholders’ equity accounts. b. Changes in AOCI are reflected in other comprehensive income, which is different from net income. c. Other comprehensive income does not imply a change in cash.

True/False (3 pts each) Indicate whether the statement is true or false. If true, explain why...

True/False (3 pts each) Indicate whether the statement is true or false. If true, explain why it is true and/or give examples to support it. If false, explain why it is false. 2.An increase in plasma osmolality will cause more secretion of ADH.

Subjects