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1. A county's 2019 operating statement for governmental funds reports transportation expenditures of $19,000,000. The government-wide statement of activities reports transportation expenses of $55,000,000. Which

1.

A county's 2019 operating statement for governmental funds reports transportation expenditures of $19,000,000. The government-wide statement of activities reports transportation expenses of $55,000,000. Which one of the following items would not explain why the government-wide statement reports a higher number than the governmental funds statement?

a. The $19,000,000 does not include depreciation on transportation-related equipment.

b. The $55,000,000 includes accrued pension costs earned this year by transportation-related employees.

c. The $19,000,000 does not include expenses not paid in cash this year.

d. The $55,000,000 includes temporary loans made by the transportation-related funds.

2.

A governmental fund reports derivative investments that qualify for hedge accounting. How are unrealizedgains and losses on these investments reported in the government-wide financial statements?

a. They are not reported.

b. They appear on the governmental funds balance sheet as part of fund balance?nonspendable.

c. Unrealized gains appear on the statement of net position as deferred inflows and unrealized losses appear as deferred outflows.

d. Unrealized gains appear on the statement of net position as deferred outflows and unrealized losses appear as deferred inflows.

3.

A county's general fund bought equipment for $50,000. The equipment was estimated to have a 10-year life, straight-line, no salvage value. Four years later, it sold the equipment for $18,000. In the year of the sale, the government-wide statement of activities will report

a. Loss on sale of capital assets of $12,000

b. Proceeds from sale of capital assets of $18,000

c. Loss on sale of capital assets of $32,000

d. Proceeds from sale of capital assets of $32,000

4.

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