Practice_Exam02_FA07_ACCY161_KEY

Practice_Exam02_FA07_ACCY161_KEY - ACCY 161 Spring 2007...

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ACCY 161 – Spring 2007 Exam #2 - KEY Part I: 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 question. 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. 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. 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. 3. 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? a. $ 0. b. $2,000,000. c. $4,250,000. d. $6,250,000. 4. 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 following except a. A debit to cash for $15,000. b. A debit to accumulated depreciation of $30,000. c. A credit to equipment for $40,000. d. All of the entries above will be made . 5. Which of the following funds of a government uses the modified accrual basis of accounting? a. Private-purpose trust fund. b. Capital projects. c. Internal service. d. Enterprise. 6. The city of Columbus issued bonds at par for the construction of a new city office building. Receipt of 4514d00474a1ad2ebc834b9d54108e31f09da8ab.doc Page 1 of 8 Personal computer for the city treasurer $4,000 Furniture for the mayor’ s office $10,000 Town buildings $3,250,000 Equipment 1,000,000 Streets, sidewalks, and water mains 2,000,000
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ACCY 161 – Spring 2007 Exam #2 - KEY 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 7. 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.
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This note was uploaded on 10/16/2010 for the course ACCT 342 taught by Professor Kay during the Spring '10 term at Eastern New Mexico.

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Practice_Exam02_FA07_ACCY161_KEY - ACCY 161 Spring 2007...

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