Question
Which of the following statements is not correct? A) Worksheet entries are posted to the general ledger when preparing the government-wide statements and then reversed
Which of the following statements is not correct?
A) Worksheet entries are posted to the general ledger when preparing the government-wide statements and then reversed at the beginning of the next fiscal year.
B) Fixed assets acquired through proprietary and fiduciary funds are reported in the Statement of Net Assets of those funds.
C) GASB requires that general fixed assets be included in the government-wide financial statements. These assets are usually acquired through General, special revenue or capital projects funds.
D) GASB Statement No. 37 specifically prohibits interest during construction in governments funds to be capitalized in the government-wide statements.
Which of the following statements is not correct with respect to the preparation of government-wide statements?
A) A worksheet entry is required to record depreciation expense on capital assets
B) Enterprise funds are reported in the business-type activities column of the government-wide statements.
C) Worksheet entries must be made to eliminate operating profits earned by enterprise funds.
D) A worksheet entry is required eliminate the charge to expenditures for capital outlay and record those expenditures as capital assets, as is required for accrual accounting
19. Which of the following is true regarding fiduciary funds?
A) Investment trust funds account for the internal portion of an investment pool, when a government is trustee for that pool.
B) Private-purpose trust funds account for resources that are administered by a government for the benefit of others, such as a fund held to distribute resources to local not-for-profit charities.
C) Both of the above.
D) Neither of the above.
20. A government reported, in its government-wide Statement of Net Assets:
assets of $80 million, including $40 million in capital assets (cost), with $12 million in accumulated depreciation, and
liabilities of $50 million, including long-term debt of $15 million, all related to capital asset acquisition.
In addition, $4 million of cash was restricted for payment of debt service. The government's unrestricted net assets would be reported as:
A) $ 3 million.
B) $13 million.
C) $16 million.
D) $ 5 million.
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