Hello,

I have put my answers in bold. I am hoping I could get someone to cross check my work? It would be much appreciated.

1. A county acquires equipment for $10,000,000 for use for a community project, reported in a special revenue fund. The equipment has a 5-year life, no residual value. After 3 years, the equipment is sold for $1,000,000. Straight-line depreciation is used if appropriate.

How is the sale reported in the special revenue fund?

Select one:

A. Expenditure, $3,000,000

B. Other financing source, $1,000,000

C. Revenue, $1,000,000

D. Loss on sale, $3,000,000

1. A county general fund provides temporary funding to its capital projects fund for a construction project. The capital projects fund will pay it back to the general fund within the same fiscal year.

How will this transaction be recorded by the general fund and the capital projects fund?

General FundCapital Projects Fund

Select one:

A.Increase in current receivables Increase in current payables

B.Other financing use Increase in current payables

C.Expenditure Revenue

D.Other financing use Other financing source

1. A county installs utility lines to a remote part of the county, financing the project with $10,000,000 in 3.5% bonds. The bond principal will be repaid in ten equal installments over the next ten years. Affected residents will be assessed an equal amount per year over the next ten years to retire the bonds and pay interest on outstanding bonds. The county has no liability for the bonds, and records transactions related to assessment of the residents and payment of the bond principal and interest using a custodial fund.

When the custodial fund pays assessments to the bondholders, which account is debited?

Select one:

A. Assessments payable

B. Fund balancerestricted

C. Due to bondholders

D. Deductions

1. A state determines that one of its swaps, reported in its enterprise fund, is no longer effective as a hedge of interest rate risk, and therefore hedge accounting is no longer appropriate. The swap was reported as an asset of $2 million.

What is one of the effects of reclassifying the swap on the proprietary funds financial statements?

Select one:

A. Deferred outflows is reduced by $2 million on the proprietary funds statement of net position.

B. Investment loss increases by $2 million on the proprietary funds operating statement.

C. The investment is reclassified from the asset to the net position section of the proprietary funds statement of net position.

D. Investment income increases by $2 million on the proprietary funds operating statement.

1. A state lottery is reported in an enterprise fund. Its statement of cash flows reports a reconciliation of:

Select one:

A. Change in cash to cash from operating activities

B. Operating income to cash from operating activities

C. Change in net position to cash from operating activities

D. Capital and noncapital financing activities to investing activities

1. At the beginning of the current year, an enterprise fund enters a 3-year lease with these terms: $100,000 is due at signing, and payments of $100,000 per year are due at the end of each of the next two years. The lease agreement carries an interest rate of 3%. The present value of the lease payments is $291,347.

At the start of the lease, the enterprise fund:

Select one:

A. Records $291,347 as a long-term asset at the time of the lease signing.

B. Records $100,000 in other financing uses at the time of the lease signing.

C. Does not record the present value of the lease, but records $100,000 in expenses with each payment.

D. Records $291,347 in other financing sources at the time of the lease signing.

1. Construction activities for Oneida County for 2020 are as follows:

1.

A capital projects fund is established for the construction of a recreation center. The total project is estimated to cost $15,000,000, with funding to come from a $9,000,000 general obligation bond issue, a $4,000,000 federal grant, and a $2,000,000 transfer from the general fund.

2.

The general fund transfers $2,000,000 to the capital projects fund.

3.

$3,500,000 of the federal grant is received in cash.

4.

The bond issue with a par value of $9,000,000 yields $9,002,000. The premium is transferred to the debt service fund to finance payment of bond principal and interest.

5.

A contract for $14,800,000 is awarded to a contractor.

6.

Invoices for $8,000,000 are received for work performed by the contractor. The town has a 5% retainage policy and pays the contractor $7,600,000 in cash.

7.

The county's spending policy is to use restricted resources first.

The county uses the GAAP budgetary basis for end-of-year encumbrances.

What is the total for other financing sources for 2020, reported on the capital projects fund operating statement?

Select one:

A. $11,000,000

B. $13,000,000

C. $ 9,000,000

D. $ 2,000,000

1. Cumberland County PA has a Mental Health and Intellectual and Developmental Disabilities special revenue fund that accounts for services provided to county residents. Resources are provided by federal and state grants.

The fund reports what category(ies) of fund balance?

Select one:

A. Nonspendable and committed

B. Restricted

C. Assigned

D. Restricted and committed

1. Which of the following will not appear on the statement of net position of an enterprise fund?

Select one:

A. Fund balancerestricted

B. Bonds payable

C. Intangible assets

D. Accumulated depreciation

1. Which statement is true with respect to reporting for compensated absences by state and local governments?

Select one:

A. If the benefit depends on future services provided by the employee, an expense is not reported in the proprietary funds.

B. Most sick leave is accrued by governmental funds.

C. The compensated absence expense reported in the proprietary funds is generally lower than the compensated absence expenditure reported in the governmental funds.

D. Only compensated absences expected to be paid with current financial resources are reported in the proprietary funds operating statement.