Ch 17 Multiple Choice Questions answer for class

Ch 17 Multiple Choice Questions answer for class - Multiple...

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Multiple Choice Questions 1. When a city signs a capital lease, which of the following entries would be made? A. For government-wide financial statements, debit Encumbrances. B. For fund-based financial statements, debit Encumbrances. C. For fund-based financial statements, credit Capital Lease Obligation. D. For government-wide financial statements, credit Capital Lease Obligation. E. For fund-based financial statements, debit an Asset account. 1. D Study Guide – Chapter 17 1
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2. When a city establishes a new landfill, which of the following entries would be made? A. At the time of establishing the landfill, for government-wide financial statements, credit a Liability for the future cost of closing the landfill. B. At the end of each period, for government-wide financial statements, credit a Liability for a pro-rata share of the cost of closing the landfill. C. At the time of establishing the landfill, for fund-based financial statements, credit a Liability for the future cost of closing the landfill. D. At the end of each period, for fund-based financial statements, credit a Liability for a pro-rata share of the cost of closing the landfill. E. For government-wide financial statements, no entry is ever made for the estimated costs of closing the landfill until the cost is actually paid. 2 . B 2 Advanced Accounting – 10/ e
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3. If the City of Dayglow receives a priceless Van Gogh painting for display in the town hall, how should the gift be recorded? A. For government-wide financial statements, a credit is made to a fiduciary trust fund. B. For fund-based financial statements, a credit is made to a fiduciary trust fund.
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Ch 17 Multiple Choice Questions answer for class - Multiple...

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