The following data applies to the next three questions:
The City of Charlestown levied property taxes in the amount of $10,000,000. It is estimated that 2% will not be collected. The taxes were levied July 1, 2014 for the fiscal year ended June 30, 2015. During the year ended June 30, 2015, $8,900,000 in property taxes were collected from this levy. It is estimated that $620,000 will be collected during the next 60 days, $300,000 will be collected more than 60 days after June 30, 2015, and $180,000 will never be collected.
107.When preparing the government-wide financial statements, how much property tax revenue should be recognized for the year ended June 30, 2015?
A)$ 8,900,000.
B)$ 9,800,000.
C)$ 9,820,000.
D)$10,000,000.
108.How much will the city report as
Deferred Inflow - Property Taxes
in its June 30, 2015 government-wide Statement of Net Position?
A)$ 0.
B)$180,000.
C)$ 300,000.
D)$ 620,000.
109.When preparing the General Fund financial statements, how much property tax revenue should be recognized from this levy for the year ended June 30, 2015?
A)$ 8,900,000.
B)$ 9,520,000.
C)$ 9,820,000.
D)$10,000,000.
110.The General Fund of the City of Plymouth purchased a police car in the amount of $28,000. Which of the following would be true?
A)The government-wide Statement of Activities would report an expense of $28,000.
B)The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances would report an expenditure of $28,000.
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)Fund Balance.
B)Net Position.
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)Expensed.
B)Capitalized.
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 Position, Credit Accumulated Depreciation.
C) Debit Accumulated Depreciation, Credit Net Position.
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