Question

In: Accounting

1) Which of the following is not a required disclosure about each major class of capital...

1) Which of the following is not a required disclosure about each major class of capital assets?

A. Beginning-of-year and end-of-year balances showing accumulated depreciation separate from historical cost.

B. Capital acquisitions and sales or other dispositions during the year showing the date and method of acquisition or disposition.

C. Depreciation expense for the current period with disclosure of the amounts charged to each function in the statement of activities.

D. Disclosures describing works of art or historical treasures that are not capitalized and explaining why they are not capitalized.

2) The City of Oak Park constructed a new storage facility using the city's own public works employees. Construction costs were incurred in the amount of $900,000, plus $25,000 in interest on short-term notes used to finance construction. What amount should be capitalized in the government-wide statements?

A. $900,000.

B. $925,000.

C. $875,000.

D. $0.

3) Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. Accumulated depreciation of $30,000 existed at the time of the sale. The journal entry to be made in the governmental activities journal will include all of the following except:

A. A debit to Cash for $15,000.

B. A debit to Accumulated Depreciation for $30,000.

C. A credit to Equipment for $40,000.

D. A credit to Other Financing Sources for $5,000.

4) GASB standards require that general capital assets be recorded in the government-wide statements at:

A. Historical cost.

B. Fair value at the financial statement date.

C. Estimated cost at the financial statement date.

D. None of the options are correct.

5) Which of the following is not true for capital projects funds?

A. Capital projects funds use a Construction Work in Progress account to record costs until the project is completed.

B. Encumbrance accounting is generally used.

C. Capital projects funds use the modified accrual basis of accounting.

D. Capital projects funds have a project-life focus.

6) The liability for general obligation bonds should be recorded in the:

A. General Fund.

B. Capital projects fund.

C. Governmental activities journal.

D. Debt service fund.

7) Which of the following debt service funds would normally have the largest balance in its Fund Balance account?

A. Serial bond debt service fund.

B. Deferred serial bond debt service fund.

C. Irregular serial bond debt service fund.

D. Term bond debt service fund.

8) Which of the following is a true statement regarding in-substance defeasance of bonds?

A. The government must place cash or other assets in an irrevocable trust sufficient to pay all future interest and principal payments for the debt being defeased.

B. The government must agree to maintain sufficient cash and investment balances in its debt service fund to cover all interest and principal payments for the debt being defeased.

C. The government must pledge to transfer amounts to an escrow agent prior to the due date for each interest and principal payment for the debt being defeased.

D. The government must agree to maintain sufficient unrestricted cash and investments in its governmental funds to cover all interest and principal payments for the debt being defeased.

Expert Solution

1. answer is option b) Capital acquisitions and sales or other dispositions during the year showing the date and method of acquisition or disposition.

explanation:

required disclosures for capital assets are:

Capital assets not being depreciated are disclosed separately from assets that are being depreciated

• General policy for capitalizing assets and for estimating the useful lives of depreciable assets

• Beginning-of-year and end-of-year balances showing accumulated depreciation separate from historical cost

• Capital acquisitions during the year

• Sales or other dispositions during the year

• Depreciation expense for the current period with disclosure of the amounts charged to each function in the statement of activities

• Disclosures describing works of art or historical treasures that are not capitalized and explaining why they are not capitalized. If capitalized, include in the disclosures described above.

Capital acquisitions during the year and Sales or other dispositions during the year are shown in the disclosures for capital assets but the method of acquisition or disposition is not shown.

ekkarill92 answered 2 years ago

The disclosure of information about products and services, geographical locations and major customers is required under...

The disclosure of information about products and services, geographical locations and major customers is required under AASB8 Operating segments. Why is this information beneficial to users of financial statements? Why are the disclosures under this standard less prescriptive than other standards in accounting?

1. We learned about each of the following experimental stories in class, which together led to...

1. We learned about each of the following experimental stories in class, which together led to the discovery of cell cycle regulation. For each one, list the model organism used, the major experimental steps that were taken, and the major result that was obtained (the significant piece of cell cycle regulation that was uncovered by the experiment) a. Identification of cyclin b. Identification of cell division cycle (CDC) mutants c. Identification of maturation promoting factor (MPF) 2. How did the...

Which of the following statements is/are TRUE about a Franchise Disclosure Document (FDD)? Group of answer...

Which of the following statements is/are TRUE about a Franchise Disclosure Document (FDD)? Group of answer choices Federal law requires the franchisor to give a potential franchisee an FDD. The purpose of the FDD is to guarantee that the franchisor’s business model is sound. A franchisee can bring suit under federal law against a franchisor who has failed to provide an FDD prior to purchase of the franchise. A and B only A, B and C

Within the VA, we are required to keep an accounting of disclosure, which tracks the information...

Within the VA, we are required to keep an accounting of disclosure, which tracks the information we release to patients and other third parties. Generally, our release of information software keeps the accounting without any additional steps or actions taken by our release of information clerks. The process, however, is different for other individuals in the facility who might be releasing; such as social working, patient advocate, infectious disease, etc. Their process is generally a manual one, in which, they...

AASB 116 requires disclosure, for each class of property, plant and equipment Select one: a. the...

AASB 116 requires disclosure, for each class of property, plant and equipment Select one: a. the useful lives or the depreciation rates used b. the deprecation methods used c. the measurement bases used for determining the gross carrying amount d. all of the options are correct.

Which of the following statements about the cost of capital is CORRECT ?

Which of the following statements about the cost of capital is CORRECT ?Select one:a. Both the cost of debt and equity financing will decrease when a firm expands into a risky new area.b. Both the cost of debt and equity financing will decrease when a nuclear plant company encounters a ban on nuclear power generation in certain states.c. The WACC of a firm will decrease when investors become more risk averse.d. Both the cost of debt and equity financing will...

Which of the following statements about financial capital is true? A. Financial capital is not important....

Which of the following statements about financial capital is true? A. Financial capital is not important. B. Financial capital is used to facilitate a business enterprise and can come from both investors and savings. C. Financial capital is something an entrepreneur does not have to worry about. D. Financial capital includes the physical facilities of a company. E. Financial capital is not used to operate a company.

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately...

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S. GAAP or IFRS disclosures provide financial statement users the most useful information for investment or credit decisions. Provide support for your choice.

Which of the following items is not part of disclosure notes to the financial statements? a)...

Which of the following items is not part of disclosure notes to the financial statements? a) Descriptions of the significant accounting methods applied in the company's financial statements. b) Additional detail of income taxes payable reported in the balance sheet. c) Names of executive officers and the salaries for each officer listed. d) Commitments under long-term supply agreements to buy inventory and equipment.

51. In which of the following engagements is a CPA required to inquire of management about...

51. In which of the following engagements is a CPA required to inquire of management about their knowledge of any fraud or suspected fraud involving management or others where the fraud could materially affect the financial statements? a. Audit b. Review c. Compilation d. All of the above e. “a” and “b” 52. A compilation is a. Limited to presenting in the form of financial statements information that is the representation of management, without...