QUESTION 1 The following assets are being transferred to the First Federal Bank

Question

QUESTION 1 The following assets are being transferred to the First Federal Bank to establish a Trust Fund for Mary Smith: Microsoft Stock book value = $20,000; market value = $26,000. Rental Property book value = $120,000; market value = $100,000 Which of the following is the most likely entry on the Trustee’s books?

Debit Microsoft Stock $20,000; debit Property $100,000; Credit Mary Smith Fund Balance $120,000.

Debit Microsoft Stock $26,000; debit Property $100,000; Credit Mary Smith Fund Balance $126,000.

Debit Microsoft Stock $20,000; debit Property $120,000; Credit Mary Smith Fund Balance $140,000.

Debit Microsoft Stock $26,000; debit Property $120,000; Credit Mary Smith Fund Balance $146,000.

QUESTION 2 The encumbrance system is used:

Because according to Generally Accepted Accounting Principles expenditures are recorded when incurred.

To prevent the over-expending of an appropriated amount in the budget.

To insure revenue is matched with expense.

To balance the Statement of Revenues, Expenditures and Changes in Fund Balances.

QUESTION 3 Which of the following is the best example of an Enterprise Fund?

Police and Fire Departments.

City owned golf course.

Pension trust funds.

Fleet of garbage trucks.

QUESTION 4 During 200X the Hartford Connecticut Salvation Army provided the following information: Food donations (fair market value $34,000). Cash donations $146,000 Volunteer bell ringers 40,000 hours (comparable minimum wage $6 hr) Local attorney donated legal time (30 hours - billing rate $120 hr) What amount shall the Hartford Connecticut Salvation Army record as salaries expense?

-0-

$146,000

$3,600

$243,600

QUESTION 5 In regard to the financial statements of a non profit organization which of the following IS true? (PICK ONE ONLY)

Net assets need only be reported in total.

The report of functional expenses is not part of the non profit’s basic financial statement.

Financial statements of a non profit organization should include an income statement, statement of retained earnings and a balance sheet.

The statement of activities shall report changes in each of the three classes of net assets.

QUESTION 6 On December 18, 200X Stop and Shop contributed peanut butter and jelly a local food pantry.  The food pantry will record the food:

At fair market value.

At the donor’s cost.

At book value.

At the value as of the date it is distributed to recipients.

Make no entry because it was a donation.

QUESTION 7 Which of the following statements is true regarding fund-based financial statements?

Fund-based financial statements report a government's activities and financial position as a whole.

Fund-based financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road.

Fund-based financial statements utilize the accrual basis of accounting much like any for-profit entity.

Fund-based financial statements help to determine whether the government's overall financial position improved or deteriorated.

Question 9

Fund-based financial statements report all assets, liabilities in a way comparable to business-type accounting.

QUESTION 8 Which of the following statements is false regarding government-wide financial statements?

Government-wide financial statements report a government's activities and financial position as a whole.

The government-wide financial statement approach helps users make long-term evaluations of the financial decisions and stability of the government.

Government-wide financial statements focus on the short-term instead of the long-term.

The measurement focus of government-wide financial statements is on all economic resources and utilizes accrual accounting.

The measurement focus of government-wide financial statements is on all economic resources and utilizes accrual accounting.

Question 9. Drye Township has received a donation of a rare painting worth $1,000,000.  For Drye's government-wide financial statements, three criteria must be met before Drye can opt not to. The city operates a public pool where each person is assessed a $2 entrance fee.  Which fund is most appropriate to record these revenues?

General Fund.

Enterprise Fund.

Special Revenue Fund.

Internal Service Fund.

Capital Projects Fund.

QUESTION 1 The following assets are being transferred to the First Federal Bank to establish a Trust Fund for Mary Smith: Microsoft Stock book value = $20,000; market value = $26,000. Rental Property book value = $120,000; market value = $100,000 Which of the following is the most likely entry on the Trustee’s books?

Explanation / Answer

1. Debit Microsoft Stock $20,000; debit Property $120,000; Credit Mary Smith Fund Balance $140,000.

2. Because according to Generally Accepted Accounting Principles expenditures are recorded when incurred.

3. Pension trust funds.

4. $146,000

5. Financial statements of a non profit organization should include an income statement, statement of retained earnings and a balance sheet.

6. At the value as of the date it is distributed to recipients.

7. Fund-based financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road.

8.

The government-wide financial statement approach helps users make long-term evaluations of the financial decisions and stability of the government.

The government-wide financial statement approach helps users make long-term evaluations of the financial decisions and stability of the government.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.