1.. In its Statement of Net Assets, a government reported: Assets of $90 million, including $30 million in capital assets (net) and liabilities of $50 million, including long-term debt of $15 million, all related to capital asset acquisition. The government also reported $5 million of net assets were restricted for payment of debt service. The government's unrestricted net assets would be reported as: A. $10 million B. $20 million C. $25 million D. $30 million 2. A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $2 million. Capital assets for that government cost $70 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect a(an): A Decrease of $1 million B. Increase of $l million C. Decrease of $3 million D. Increase of $2 million 3. The City of Charlotte levied property taxes in 2009 in the amount of $10 million. It is estimated that 2% will be uncollectible. During 2009, $9,000,000 was collected and it is anticipated that $400,000 will be collected during the next 60 days. When moving from the changes in fund balances in the Statement of Revenues, Expenditures and Changes in Fund Balances to the changes in net assets in the Statement of Activities, what will be the adjustment? A. An increase of $800,000 B. An increase of $400,000 C. An increase of $200,000 D. Zero 4. A government's Statement of Revenues, Expenditures and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000. That statement also reflected expenditures for debt service in the amount of $3,000,000, including $2,600,000 for principal payments. Assuming no other changes, the effect, when moving from the change in fund balances in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a: A. $1,000,000 increase B. $1,000,000 decrease C. $1,600,000 increase D. $1,600,000 decrease 5. A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $l,000,000; (2) a transfer from the General Fund to an enterprise fund in the amount of $1,200,000; and (3) a transfer from the General Fund to an internal service fund in the amount of $400,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be: A. $2,600,000 B. $1,400,000 C. $1,200,000 D. $ 800,000 6. A government reported an other financing source in the amount of $800,000, related to the sale of land in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances. The land had a cost of $350,000. The adjustment in the reconciliation, when moving from the governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a(an): A. Increase of $450,000 B. Decrease of $450,000 C. Increase of $350,000 D. Decrease of $350,000 7. A government incurred expenses for its infrastructure as follows: $15 million for general repairs; $13 million to extend the life for existing infrastructure; and $12 million for additions and betterments. The government chooses to use the modified approach to record infrastructure. The infrastructure has a basis of $400 million and would be depreciated over a 40 year life, if depreciation were charged. The amount that would be shown as expense in the Statement of Activities would be: A. $40 million B. $28 million C. $27 million D. $25 million 8. Which of the following is a purpose of the worksheet to convert from fund financial records to government-wide financial statements? A. Eliminate expenditures for capital assets B. Eliminate fiduciary funds C. Both A and B D. Neither A nor B 9. The City of Bluefield had general obligation debt outstanding in the amount of $64,000,000 and had available resources of $12,000,000 to pay that debt. The assessed valuation of property in the city is $800,000,000. The state applies a 10 percent debt limit, based on assessed valuation. The debt margin to be reported in the City's statistical section of the CAFR would be: A. $64 million B. $40 million C. $36 million D. $28 million 10. The total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time is known as: A. Debt margin B. Debt limit C. Borrowing power D. Maximum debt 11. Which of the following is true regarding the reporting of general fixed assets by state and local governments? A. Fixed assets are reported in the government-wide Statement of Net Assets B. Fixed assets are reported in the governmental funds Balance Sheet C. Both of the above D. Neither of the above 12. A government incurred expenditures for its infrastructure as follows: $20 million for general repairs; $21 million to extend the life of existing infrastructure; $22 million for improvements and additions. If depreciation is to be charged, the amount would be $23 million. Which of the following would be true? A. If the government chose to use the modified approach to record infrastructure, the amount to be charged as expense would be $43 million B. If the government chose not to use the modified approach to record infrastructure, the amount to be charged to expense would be $41 million C. Both of the above D. Neither of the above 13. A government reported an other financing source in the amount of $600,000 related to the sale of land in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances. The land had a cost of $170,000. The amount that would be reported in the government-wide Statement of Activities would be: A. A gain of $ 770,000 B. A gain of $ 600,000 C. A gain of $ 430,000 D. A gain of $ 170,000 14. A government recorded transfers out of the General Fund to the debt service fund in the amount of $ 600,000 and to the capital projects fund in the amount of $ 300,000. The amount that would be shown as a transfer in the governmental activities column of the Statement of Activities would be: A. $900,000 B. $600,000 C. $300,000 D. $ 0 15. The City of Casper levied property taxes for 2009 in the amount of $8,000,000. The amount estimated to be uncollectible is 2%. By the end of the year, $7,200,000 had been collected. It was estimated that $400,000 would be collected during the next 60 days of 2008 and that $240,000 would be collected after that. The City has a policy of recognizing the full amount possible for property taxes. Which of the following statements is true? A. The amount reported for property tax revenue in the government-wide Statement of Activities would be $7,840,000 B. The amount reported for property tax revenue in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances would be $7,600,000 C. Both of the above D. Neither of the above 16. In its Statement of Net Assets, a government reported: Assets of $90 million, including $30 million in capital assets (net) and liabilities of $50 million, including long-term debt of $15 million, all related to capital asset acquisition. The government also reported $5 million of net assets were restricted for payment of debt service. The government's unrestricted net assets would be reported as: A. $10 million B. $20 million C. $25 million D. $30 million 17. A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $2 million. Capital assets for that government cost $70 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect a(an): A. Decrease of $1 million B. Increase of $l million C. Decrease of $3 million D. Increase of $2 million 18. The City of Charlotte levied property taxes in 2009 in the amount of $10 million. It is estimated that 2% will be uncollectible. During 2009, $9,000,000 was collected and it is anticipated that $400,000 will be collected during the next 60 days. When moving from the changes in fund balances in the Statement of Revenues, Expenditures and Changes in Fund Balances to the changes in net assets in the Statement of Activities, what will be the adjustment? A. An increase of $800,000 B. An increase of $400,000 C. An increase of $200,000 D. Zero 19. A government's Statement of Revenues, Expenditures and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000. That statement also reflected expenditures for debt service in the amount of $3,000,000, including $2,600,000 for principal payments. Assuming no other changes, the effect, when moving from the change in fund balances in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a: A. $1,000,000 increase B. $1,000,000 decrease C. $1,600,000 increase D. $1,600,000 decrease 20. A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $l,000,000; (2) a transfer from the General Fund to an enterprise fund in the amount of $1,200,000; and (3) a transfer from the General Fund to an internal service fund in the amount of $400,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be: A. $2,600,000 B. $1,400,000 C. $1,200,000 D. $ 800,000 21. Which of the following is true regarding the government-wide statements? A. Balances from enterprise funds' statements are entered directly to the business-type activities sections of the government-wide statements without adjustment B. Government-wide statements are consolidated, within columns C. Both of the above D. Neither of the above 22. A government reported an other financing source in the amount of $800,000, related to the sale of land in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances. The land had a cost of $350,000. The adjustment in the reconciliation, when moving from the governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a(an): A. Increase of $450,000 B. Decrease of $450,000 C. Increase of $350,000 D. Decrease of $350,000 23. A government incurred expenses for its infrastructure as follows: $15 million for general repairs; $13 million to extend the life for existing infrastructure; and $12 million for additions and betterments. The government chooses to use the modified approach to record infrastructure. The infrastructure has a basis of $400 million and would be depreciated over a 40 year life, if depreciation were charged. The amount that would be shown as expense in the Statement of Activities would be: A. $40 million B. $28 million C. $27 million D. $25 million 24. Which of the following is a purpose of the worksheet to convert from fund financial records to government-wide financial statements? A. Eliminate expenditures for capital assets B. Eliminate fiduciary funds C. Both A and B D. Neither A nor B 25. The City of Bluefield had general obligation debt outstanding in the amount of $64,000,000 and had available resources of $12,000,000 to pay that debt. The assessed valuation of property in the city is $800,000,000. The state applies a 10 percent debt limit, based on assessed valuation. The debt margin to be reported in the City's statistical section of the CAFR would be: A. $64 million B. $40 million C. $36 million D. $28 million