chap008 - Chapter 8 8-1 The solution to this and the first...

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Chapter 8 8-1. The solution to this and the first exercise of Chapters 1–7 and 9 will differ from student to student assuming each has a different CAFR. 8-2. 1. B. 2. A. 3. B. 4. C. 5. B. 6. A. 7. C. 8. D. 9. C. 10. C. ($3,000,000 × 1.00) + ($2,000,000 × .5)/ 10,000 = $400.00 8-3. 1. C. 2. B. 3. C. 4. C. 5. B. 6. A. 7. D. 8. D. 9. C. 10. D. ($600,000,000 × .08) – ($30,000,000 - $8,000,000) = $26,000,000 8-4. 1. Governmental fund statements are to be prepared using the current financial resources measurement focus and modified accrual basis of accounting. Proprietary fund, fiduciary fund, and government-wide statements are to be prepared using the economic resource measurement focus and accrual basis of accounting. 2. A. Discretely presented component units are included in the government-wide but not the fund financial statements. B. Fiduciary funds are included in the fund financial statements; statements include the Statement of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets. Fiduciary funds are not included in the government-wide financial statements. C. Internal service funds are reported in the proprietary funds Statement of Net Assets and Statement of Revenues, Expenses and Changes in Fund Net Assets. Internal service funds, however, are usually presented in the government-wide statements as governmental, not business-type activities. 8-1
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8-4 (Continued). 3. A. The category, Invested in Capital Assets, net of related debt, includes all capital assets, less depreciation less debt associated with the acquisition of capital assets. B. Restricted net assets include net assets (a) externally imposed by creditors (such as through debt covenants), and (b) imposed by law through constitutional provisions or enabling legislation. C. Unrestricted net assets represent those net assets that may be used in any manner desired by the governmental unit. That number is obtained by subtracting from total net assets the net capital assets, net of related debt, and the restricted net assets. 8.5. Some of the items that will need adjusting, when moving from fund financial statements to government-wide financial statements, starting with governmental activities, include: A. Recording general fixed assets and related depreciation accounts. B. Eliminating construction expenditures shown in governmental funds. C. Recording depreciation expenses for general fixed assets. D. Record existing general long-term Debt. E. Eliminating proceeds of bonds sold. F. Eliminating expenditures for bond principal. G. Making adjustments for interest expense accrual, including amortization of bond discounts and premiums. H. Making adjustments for revenue accruals, to meet the privisions of GASB Statement 33. I.
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chap008 - Chapter 8 8-1 The solution to this and the first...

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