ACC410 Midterm Exam

1. ACC 410 Midterm Exam Solutions - 100% Correct http://www.homeworkarena.com/acc-410-midterm-exam-solutions-100-correct Visit Website: http://www.homeworkarena.com/ Please contact us for more Tutorial & Help ( homeworkarena@gmail.com) • Question 1 governmental or not-for-profit entity from a business entity? Which of the following characteristics is NOT a characteristic that may distinguish a • Question 2 distinguishes these entities from for-profit entities? Which of the following is common to both governments and not-for-profit entities but • Question 3 all nongovernment not-for-profits? Which of the following rule-making authorities would establish accounting standards for • Question 4 for-profit entity external financial statements? Management. Which of the following is NOT generally considered a main user of government and not- • Question 5 General Fund of the City of Marmaduke? Which of the following liabilities would NOT be found in the fund balance sheet of the Which of the following funds is a governmental fund? • Question 6

2. established a Central Print Shop which bills the various departments and agencies of the city for printing services rendered. The Central Print Shop should be accounted for in which of the following funds. To fulfill the printing needs of its various departments and agencies, the City has • Question 7 Which of the following is NOT a governmental fund? • Question 8 prepared using In the fund financial statements, the statements for the governmental funds should be • Question 9 How many government-wide statements is a municipality required to prepare? • Question 10 following? The focus of the Statement of Activities of the city of West Hills is on which of the • Question 11 wide activity/operating statement is on which of the following? Under the new GASB reporting model for governmental entities, the focus of the entity- • Question 12 revenues for the current period should include Under the accrual basis of accounting used by a governmental entity, investment • Question 13

3. remitted by the merchants to the State by the 20th day of the month following the month in which the sale occurred. The State has a policy of remitting sales taxes to the City within 30 days of collection by the State. Cash received by the State related to sales tax is as follows: Amount received 1/20/00, applicable to December 1999 sales $ 50 Amount received 2/20/00, applicable to January 2000 sales $ 15 Amount received 3/20/00, applicable to February 2000 sales $ 10 Amount received during 2000 related to March-November 2000 sales $190 Amount received 1/20/01 for December 2000 sales $ 55 Amount received 2/20/01 for January 2001 $ 20 Amount received 3/20/01 for February 2001 $ 5 Assuming the City uses the same period to define “available” as the maximum period allowable for property taxes, what amount should it recognize as sales tax revenue in its government-wide financial statements for the fiscal year ended 12/31/00. A City levies a 2% sales tax that is collected for them by the State. Sales tax must be • Question 14 following fiscal period are recognized as revenue in the fund financial statements Under GAAP, property taxes levied in one fiscal period to finance the activities of the • 0 out of 10 points Question 15 in the accounting period Under GAAP, income tax revenues should be recognized in the fund financial statements • Question 16 offices of the County. The equipment has an estimated useful life of three years and salvage of $10,000. Gilbert County has a 6/30 fiscal year-end. Assuming that the County maintains its books and records in a manner that facilitates the preparation of fund financial statements, the $70,000 cost of this equipment would require which of the following entries? On July 1 Gilbert County bought computer equipment for use in the administrative • Question 17

4. the City had no supplies on hand. During the year the City purchased $600,000 of supplies for use by activities accounted for in the General Fund. The City used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of the fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be Bay City uses the purchases method to account for supplies. At the beginning of the year • Question 18 employment. The City has a policy that employed must take their vacation days during the year following the year in which it is earned. If they do not take vacation in the allotted period, they forfeit the vacation pay benefit. Traditionally, employees have taken 80% of the vacation days earned. During the current year, employees of the City of Orleans earned $400,000 in vacation pay. Assuming the city maintains its books and records in a manner to facilitate the preparation of the government-wide financial statements, which of the following entries is the correct entry in the General Fund to record the vacation pay earned during the current period? Employees of the City of Orleans earn ten days paid leave for each 12 months of • Question 19 preparation of its fund financial statements. The City pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the General Fund had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). They will earn $80,000 on Thursday and Friday (July 1 and 2). What entry, if any, should be made on June 30? Assume that the City of Juneau maintains its books and records to facilitate the