Share
Explore BrainMass

Internal Service Funds, Budgetary Comparison, MD&A

3-2
1. Internal service funds are reported as
a. Business-type activities in government-wide statements and governmental funds in funds statements
b. B proprietary funds in funds statements and governmental activities in government-wide statements
c. C. business-type activities in government-wide statements and proprietary funds in funds statements
d. Governmental funds in funds statements and governmental activities in government-wide statements

2. In which of the following statements would depreciation not be reported?
a. Internal service fund statement of revenues, expenses, and changes in fund net assets
b. government-wide statement of activities
c. capital projects fund statement of revenues, expenditures, and changes in fund balance
d. enterprise fund statement of revenues, expenses, and changes in fund net assets

3. Which of the following is "required supplementary information"?
a. Explanation of accounting principles used in preparing the financial statements
b. Schedule of changes in capital assets
c. Budgetary comparison
d. Ten-year tend of assessed property values

4. Which of the following is not required to be incorporated into the budgetary comparison?
a. Expenditures per originally adopted budget
b. Expenditures per the amended budget
c. Actual expenditures
d. Variance between the actual expenditures and those per the amended budget

5. Management's discussion and analysis (MD&A) is most likely to include information on
a. Service efforts and accomplishments
b. Market values of government-owned capital assets
c. The condition of infrastructure assets
d. Financial performance during the period covered by the financial statements

6. Which of the following is not one of the three main categories of funds?
a. Governmental funds
b. Permanent funds
c. Proprietary funds
d. Fiduciary funds

7. "Major" funds include
a. All governmental funds plus proprietary funds that have fund balances greater than 10% of those of all proprietary funds combined
b. The general fund, special revenue funds, capital projects funds, and debt service funds
c. The general fund plus all funds having assets greater than 50% of those of the general fund
d. The general fund plus other funds in which total assets, revenues, or expenditures/expenses of the fund are at least 10% of the corresponding total for the relevant fund category (governmental or enterprise) and also at least 5% of the corresponding total for all governmental and enterprise funds combined

8. The assets and liabilities of nonmajor governmental funds would be
a. Aggregated and reported in the governmental funds balance sheet in a single column
b. Excluded from the government-wide statement of net assets
c. Shown only in notes to the financial statements
Reported as required supplementary information

9. Which of the following would not be reported on a government-wide statement of activities?
a. A transfer of cash from the general fund to the debt service fund
b. Cost incurred by the recreation department for electricity purchased from the city-owned electric utility
c. Depreciation on traffic lights
d. Interes on bonds issued by the electric utility department

10. Which of the following is not required to be included in a government's basic financial statements or required supplementary information?
a. A reconciliation between proprietary fund financial statements and the business-type activities column of the government-wide financial statements
b. A reconciliation between governmental fund financial statements and the governmental activities column of the government-wide financial statements
c. A reconciliation between revenues reported on the basis of GAAP and those reported on a budgetary basis
d. A comparison between actual expenditures and expenditures per amended budget

Solution Preview

1. Internal service funds are reported as
a. Business-type activities in government-wide statements and governmental funds in funds statements
b. B proprietary funds in funds statements and governmental activities in government-wide statements
*c. C. business-type activities in government-wide statements and proprietary funds in funds statements
d. Governmental funds in funds statements and governmental activities in government-wide statements

Treated as business since charge fees for services

2. In which of the following statements would depreciation not be reported?
a. Internal service fund statement of revenues, expenses, and changes in fund net assets
b. government-wide statement of activities
*c. capital projects fund statement of revenues, expenditures, and changes in fund balance
d. enterprise fund statement of revenues, expenses, and changes in fund net assets
Government-wide is full accrual, internal service and enterprise are treated as business-like funds

3. Which of the following is "required supplementary information"?
a. Explanation of accounting principles used in preparing the financial statements
b. Schedule of changes in capital assets
*c. Budgetary comparison
d. Ten-year tend of assessed property values

Budgets!
http://www.gasb.org/st/summary/gstsm34.html

4. Which of the following is not required to be incorporated into the budgetary comparison?
a. Expenditures per originally adopted budget
b. Expenditures per the amended budget
c. Actual expenditures
*d. Variance between the actual expenditures and those per the amended budget

To demonstrate whether resources were obtained and used in accordance with the government's legally adopted budget, RSI should include budgetary comparison schedules for the general fund and for each major special ...

Solution Summary

Your tutorial includes comments and two references to assist you in understanding the selections.

$2.19