All Questions Details given below (Please Check) ACC 577 Week 10 Quiz Question 1 � Which of the following is a required financial statement for an investment trust fund? Question 2 � Taxes collected and held by Franklin County for a separate school district would be accounted for in which fund? Question 3 � During the past fiscal year, Arnett County recorded the following transactions: Receipt of $36,000 of intergovernmental revenues which must be used to provide medical assistance to victims of natural disasters. Investment earnings of $5,000 from an endowment established by the local Lions Club to subsidize summer camp for the Boy Scouts with demonstrated financial need. $3,000,000 in proceeds from revenue bonds. How much money from these transactions should Arnett record in Special Revenue funds? Question 4 What is the basic criterion used to determine the reporting entity for a governmental unit? Question 5 � State University received two contributions during the year that must be used to provide scholarships. Contribution A for $10,000 was collected during the year, and $8,000 was spent on scholarships. Contribution B is a pledge for $30,000 to be received next fiscal year. What amount of contribution revenue should the university report in its statement of activities? Question 6 � � � On January 2, City of Walton issued $500,000, 10-year, 7% general obligation bonds. Interest is payable annually, beginning January 2 of the following year.What amount of bond interest is Walton required to report in the statement of revenue, expenditures, and changes in fund balance of its governmental funds at the close of this fiscal year, September 30? Question 7 � Hospital, Inc., a not-for-profit organization with no governmental affiliation, reported the following in its accounts for the current year ended December 31: What amount would the hospital report as net patient service revenue in its statement of operations for the current year ended December 31? Question 8 The encumbrance account of a governmental unit is debited when Question 9 � The following revenues were among those reported by Ariba Township in 2005: What amount of the foregoing revenues should be accounted for in Ariba’s governmental-type funds? Question 10 Todd City formally integrates budgetary accounts into its general fund. Todd uses an internal service fund to account for the operations of its data processing center, which provides services to Todd’s other governmental units. During the year ended December 31, 2005, Todd received a state grant to buy a bus, and an additional grant for bus operation in 2005. In 2005, only 90% of the capital grant was used for the bus purchase, but 100% of the operating grant was disbursed. Todd has incurred the following long-term obligations: General obligation bonds issued for the water and sewer fund which will service the debt. Revenue bonds to be repaid from admission fees collected from users of the municipal recreation center. These bonds are expected to be paid from enterprise funds, and secured by Todd’s full faith, credit, and taxing power as further assurance that the obligations will be paid. Todd’s 2005 expenditures from the general fund include payments for structural alterations to a firehouse and furniture for the mayor’s office. In Todd’s general fund balance sheet presentation at December 31, 2005, which of the following expenditures should be classified as fixed assets? Question 11 On March 2, 2004, Finch City issued 10-year general obligation bonds at face amount, with interest payable March 1 and September 1. The proceeds were to be used to finance the construction of a civic center over the period April 1, 2004, to March 31, 2005.During the fiscal year ended June 30, 2004, no resources had been provided to the debt service fund for the payment of principal and interest. On June 30, 2004, Finch’s debt service fund should include interest payable on the general obligation bonds for Question 12 A company used the percentage-of-completion method of accounting for a four-year construction contract. Which of the following items would be used to calculate the income recognized in the second year? Question 13 During 2004, Mitchell Corp. started a construction job with a total contract price of $600,000. The job was completed on December 15, 2005. Additional data are as follows: Under the completed contract method, what amount should Mitchell recognize as gross profit for 2005? Question 14 Which of the following would be reported as program revenues on a local government’s government-wide statement of activities? Question 15 Alinas County manages an endowment of $500,000, the earnings from which are required to be used to maintain the walking trails in the county parks. During the year, the endowment received $20,000 in investment earnings, $3,000 of which was related to earnings from the previous year which were not received 80 days after the fiscal year end. At the end of the year, the market value of the endowment was $510,000. In its fund-based financial statements, how much should the County recognize in conjunction with this endowment? Question 16 A state or local government should not have multiple funds in which of the following fund categories? Question 17 The governmental fund measurement focus is on the determination of Question 18 A not-for-profit voluntary health and welfare organization received a $500,000 permanent endowment. The donor stipulated that the income must be used for a mental health program. The endowment fund reported $60,000 net decrease in market value and $30,000 investment income.The organization spent $45,000 on the mental health program during the year. What amount of change in temporarily restricted net assets should the organization report? Question 19 A not-for-profit voluntary health and welfare organization received a $500,000 permanent endowment. The donor stipulated that the income must be used for a mental health program. The endowment fund reported $60,000 net decrease in market value and $30,000 investment income. The organization spent $45,000 on the mental health program during the year. What amount of change in temporarily restricted net assets should the organization report? Question 20 Lema Fund, a voluntary welfare organization funded by contributions from the general public, received unrestricted pledges of $200,000 during 2005. It was estimated that 10% of these pledges would be uncollectible. By the end of 2005, $130,000 of the pledges had been collected. It was expected that $50,000 more would be collected in 2006 and that the balance of $20,000 would be written off as uncollectible. What amount should Lema include under public support in 2005 for net contributions?