110. The General Fund of the City of Plymouth purchased a police car in the amount of $25,000. Which of the following would be true?
A)The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances would report an expenditure of $25,000.
B)The government-wide Statement of Activities would report an expense of $25,000.
C)Both of the above.
D)Neither of the above.
111.Which of the following is not true regarding infrastructure assets?
A) Governments can record depreciation in the same manner as for other depreciable fixed assets.
B) Because they have such long useful lives, infrastructure assets are never depreciated.
C) Governments can choose to expense expenditures that extend the life of infrastructure assets in lieu of depreciation.
D) Expenditures to add to or improve infrastructure assets must be capitalized.
112.For the depreciation of infrastructure…
A) Governments are required to record depreciation in the same manner as other depreciable fixed assets.
B) Governments are required to record depreciation using a modified approach.
C) Governments do not record depreciation for infrastructure.
D) Governments can choose to expense expenditures that extend the life of infrastructure assets in lieu of depreciation
113.The difference between assets and liabilities in the government-wide statements is called_________.
A) Net Assets.
B) Fund Balance.
C) Net Equity.
D) Accrued Equity.
114.When using the modified approach to account for infrastructures, expenditures to extend the life of the infrastructure assets are:
A) Capitalized.
B) Expensed.
C) Either A or B.
D) Neither A nor B.
115.What would be the appropriate journal entry to adjust to the accrual basis of accounting for depreciation on general capital assets related to prior years?
A) Debit Depreciation expense, Credit Accumulated Depreciation.
B) Debit Net Assets, Credit Accumulated Depreciation.
C) Debit Accumulated Depreciation, Credit Net Assets.
D) Debit Machinery, Credit Accumulated Depreciation.
116.The governmental funds report a total of $2,000,000 Transfers In and $1,500,000 Transfers Out. To consolidate governmental activities what amount will be eliminated from the Transfers In and Transfers Out accounts among the governmental funds?
A) $500,000
B) $1,500,000
C) $2,000,000
D) $3,500,000