What is the fund balance classification of amounts that may be spent only for specific purposes established by a formal act of a state or local government's highest decision maker? Restricted. Nonspendable. Assigned. Committed. Meen County reported a combined fund balance of $980 million for all governmental funds, an increase of $110 million, or 12.64%, from the prior year. The increase is primarily due to the issuance of a general obligation bond. The bond agreement stipulated that the proceeds are to be used for road infrastructure refurbishments. The proceeds of the bond issue are reported as Nonspendable. Assigned. Restricted. Committed. A foreign subsidiary's functional currency is its local currency, which has not experienced significant inflation. The weighted-average exchange rate for the current year is an appropriate exchange rate fortranslating When remeasuring foreign currency financial statements into the functional currency, which of the following items would be remeasured using historical exchange rates? Bonds payable. Inventories carried at cost. Equity securities reported at fair values. Accrued liabilities. Gator City used the following funds for financial reporting purposes: How many of Gator's funds use the accrual basis of accounting to prepare their financial statements? Four. Three. Five. Two. Bay Creek's municipal motor pool maintains all city-owned vehicles and charges the various departments for the cost of rendering those services. In which of the following funds should Bay Creek account for the cost of such maintenance? Special assessment fund. General fund. Special revenue fund. Internal service fund. The primary authoritative body for determining the measurement focus and basis of accounting standards for governmental fund operating statements is the Governmental Accounting Standards Board (GASB). National Council on Governmental Accounting (NCGA). Financial Accounting Standards Board (FASB). Governmental Accounting and Auditing Committee of the AICPA (GAAC). Gains from remeasuring a foreign subsidiary's financial statements from the local currency into its functional currency should be reported In other comprehensive income. In income from continuing operations. As a direct increase in retained earnings. As a deferred foreign currency transaction gain. In preparing consolidated financial statements of a U.S. parent company with a foreign subsidiary, the foreign subsidiary's functional currency is the currency Of the country in which the subsidiary is located. In which the subsidiary maintains its accounting records. Of the country in which the parent is located. Of the environment in which the subsidiary primarily generates and expends cash. What basis of accounting should be used when preparing a governmental funds statement of revenues, expenditures, and changes in fund balances? Cash basis of accounting. Modified cash basis of accounting. Accrual basis of accounting. Modified accrual basis of accounting