Question $4$

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Question $5$

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A city maintains a solid waste landfill that was $12\%$ filled at the end of Year $1$ and $26\%$ filled at the end of Year $2.$ During those periods, the government estimated that total closure costs would be $$2$ million. It pays $$50,000$ to an environmental company on July $1$ of each of these two years to begin some of the restoration process. Such payments will continue for years to come. The city has a December $31$ year$-$end.

Government$-$wide financial statements will show a $$420,000$ liability at the end of Year $2.$

True

False

Refer again to Question $4.$

Assume the city reports the landfill in the general fund. Over the landfill's entire life, the amount of expense recognized in government$-$wide financial statements will be the same as the amount of expenditures recognized in fund financial statements.

True

False

Question $6$

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Question $7$

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A city receives a copy of its original charter from the year $1799$ as a gift from a citizen. The document is put under protective glass and displayed in the city hall for all to see. The city estimates its fair value at $$10,000.$

Assume this gift qualifies for optional handling. The city must make a decision as to whether to recognize a revenue of $$10,000$ in government$-$wide financial statements.

True

False

Refer again to Question $6.$

Assume this gift qualifies for optional handling. The city can choose to report the gift in the statement of net activities for government$-$wide financial statements in a way so that no overall net effect is reported.

True

False