ACCY 161 – Spring 2007
Exam #2 - KEY
70 points – 35 questions - two points each.
Answer each question as indicated and put your answer
on the Scantron.
I would also recommend that you put your answer on the exam as well.
Choose what you
think is the best answer
If you think a question is unclear, put a comment on the exam under or next to the
Read each question slowly and carefully.
Circle your answer on the exam if you want to record
you answer there as well as on the Scantron.
Accountability for capital assets used by departments accounted for by the governmental funds of a
government should be established in
The appropriate governmental funds.
The property, plant, and equipment fund.
Departmental memorandum records.
d. The governmental activities accounts at the government-wide level.
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?
The following general capital assets were owned by the town of Otterville:
What amount should be recorded as capital assets in the town's governmental activities accounts if
Otterville follows GASB standards?
Equipment in general governmental service that had been acquired several years ago by a capital projects
fund at a cost of $40,000 was sold for $15,000 cash.
Accumulated depreciation of $30,000 existed at the
time of the sale. The journal entry to be made in the governmental activities journal will include all of the
A debit to cash for $15,000.
A debit to accumulated depreciation of $30,000.
A credit to equipment for $40,000.
All of the entries above will be made
Which of the following funds of a government uses the modified accrual basis of accounting?
Private-purpose trust fund.
b. Capital projects.
The city of Columbus issued bonds at par for the construction of a new city office building.
Page 1 of 8
Personal computer for the city treasurer
Furniture for the mayor’ s office
Streets, sidewalks, and water mains