Practice Exam 2.htm

Practice Exam 2.htm - Select the BEST answer to each...

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Select the BEST answer to each question from those given. Each Problem is worth 4 points. 1. Accountability for capital assets used by departments accounted for by the governmental funds of a government should be established in A) The appropriate governmental funds. B) The property, plant, and equipment fund. C) Departmental memorandum records. D) The governmental activities accounts at the government-wide level. D 2. The following items were included in Prairie City's General Fund expenditures for the year ended June How much should be classified as capital assets in Prairie City's General Fund balance sheet at June 30? A) $ 0. B) $ 4,000. C) $10,000. D) $14,000. A 3. Which of the following funds of a government uses the modified accrual basis of accounting?
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B) Capital projects. C) Internal service. D) Enterprise. B 4. The city of Columbus issued bonds at par for the construction of a new city office building. Receipt of the bond proceeds would result in journal entries in which funds? A) Capital Projects Fund: Yes; Debt Service Fund: No B) Capital Projects Fund: No; Debt Service Fund: Yes C) Capital Projects Fund: Yes; Debt Service Fund: Yes D) Capital Projects Fund: No; Debt Service Fund: No A 5. With regard to depreciation of general capital assets A) Depreciation expense should be charged in the appropriate governmental funds, and reported in the governmental activities accounts. B) Depreciation expense must be recorded in the governmental fund, but no depreciation expense can be recorded in the governmental activities accounts. C) No depreciation can be recorded in any governmental fund, but depreciation expense must be reported in the governmental activities accounts. D) No depreciation can be recorded in any governmental fund, nor is it permissible to record depreciation expense in the governmental activities accounts. C
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Practice Exam 2.htm - Select the BEST answer to each...

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