F9_T1_lecture - F9 T1 TURE F9 : 2?:03 :maining 3:. PM...

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Unformatted text preview: F9 T1 TURE F9 : 2?:03 :maining 3:. PM Governmental and Not-for-Profit Organizations (Topic 1 : Governmen... vau 5. CPA-00560 Tree City reported a $1500 net increase in fund balance for governmental funds. During the veart Tree purchased general capital assets of $9.000 and recorded depreciation expense of $3,000. What amount should Tree report as the change in net assets for governmental activities? El. {$4.530} J“. Class Question Answer b. $1.500 c. $7.500 CLASS QUESTION ANSWER d. $10,500 5. CPA-00950 11 II Choice c is correct. The reconciliation ofthe change in fund balances in government: statements to the change in net assets for overnmentai activities in the government-viir computed using the GOES BARE mnemonic. The fact pattern only describes measure {GOES} issues computed as follows: 31,5 9,: (3,: G Change in Governmental Fund Balance 0 Capital Dutlav {net of depreciation] E Expenditured Principal Pavments on Debt — Proceeds from New Debt 5 Internal Service Fund Net Income E Change in Net Assets in government—wide financial statements 'I'I'I11 Frlitirtn flu-R1] HL-!.—- H-“ E.— E............ -l. TURE F9 : Governmental and Not-for-Profit Organizations (Topic 1 : Governmen... “ku «1 [A] E. CPA-00539 Dogwood Citv's water enterprise fund received interest of $1D.DUU on long-term investments. How should mm this amount be reported on the Statement of Cash Flows? a. Operating activities. _::'j' b. Non-capital financing activities. c. lCapital and related financing activities. d. Investing activities. .l“. 1‘u'llasxs Question Answer if; 3? CLass QUESTION ANSWER fl 6. CPA-00989 E Choice "d" is correct. Cash receipts associated with interest income are reported as investing activities _ for purposes of enterprise fund Statement of Cash Flow reporting. Choice “a” is incorrect. Although cash receipts associated with interest income are frequently classified as operating activities for purposes of commercial Statement of Cash Flow reporting, enterprise funds "mam report these cash inflows as investing activities. M Choice “b” is incorrect. Non-capital financing activities anticipate the cash flows associated with rim'e J borrowing and lending related to sustaining operations. 03:04 Choice "c" is incorrect. Capital financing activities anticipate the cash flows associated with borrowin Training and lending related to long-lived assets. 1 PM TURE F9 a: la] Z—Lléi- l l 01:02 fl %l-S-E Tees “—-—3— ._L_... was: {fit—'5 g 3—3? {fit—EE- %l—E _'3"3.'.=.ft!5'_' - 01:53 Time o2:33 :rnaining 1 PM : Governmental and Not-for-Profit Organizations (Topic 1 : Governmen... vau T. CPA-00580 According to GASB 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments, certain budgetary schedules are required supplementary inforrnaticn. What is the minimum budgetary information required to be reported in those schedules? a. A schedule of unfavorable variances at the functional level. b. a schedule showing the final appropriations budget and actual expenditures on a budgetary basis. c. A schedule showing the original budget, the final appropriations budget, and actual inflows, outflows, and balances on a budgetary basis. d. A schedule showing the proposed budget. the approved budget, the final amended budget, actual inflows and outflows on a budgetary basis, and variances between budget and actual. 1‘. Class Question Answer 3? CLASS QUESTION ANSWER .q T. CPA-00980 Rule: Budgetary comparison schedules should be prepared forthe general fund and each major special revenue fund, which requires a budget and display the original budget, final appropriations budget, and actual inflows, outflows, and balances on a budgetary basis. Choice "c" is correct. The minimum budgetary information presented in governmental financial statements, typically as required supplementary infomiaticn, would include the schedule described in thi rule above. Choice "a" is incorrect. Presentations of variances are optional. ...
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