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WGU - D250 - Chapters 2-6 Questions & Answers Already Passed!!
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WGU - D250 - Chapters 2-6 Questions & Answers Already Passed!!
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Name: Score:70 Multiple choice questions
Term 1 of 70
Two neighboring cities, City A and City B, jointly operate a public transportation system.
Generated revenues cover all expenses. City A's ownership interest in the system is 20%. How
should City A report its interest in the transportation system in its government-wide financial
statements?
As a joint venture
As a proprietary fund
As a component unit
As a transfer-in
Term 2 of 70
What does the economic resources measurement for full accrual basis do?
It includes information on revenue and expenses only.
It focuses on historical cost of assets and liabilities.
It excludes all noncash transactions.
It reports only on the balances and flows of current and noncurrent assets and liabilities.
,Term 3 of 70
A city issues $2 million of bonds at par. It incurred $0.1 million in associated costs to issue the
bonds. The money raised by the bonds will go to a capital projects fund. Which accounting entry
should this city make in its capital project fund?
Debit cash: $1.9 million; credit bond proceeds: $2 million
Debit cash: $1.8 million; debit bond issue costs: $0.1 million; credit bond proceeds: $2
million
Debit cash: $2 million; credit bond proceeds: $2 million
Debit cash: $1.9 million; debit bond issue costs: $0.1 million; credit bond proceeds: $2
million
Term 4 of 70
In 20X1, a city issues $1 million of 10% bonds to fund a capital improvement. The bonds were issued
at par value on April 1. Interest is due every six months from the issue date. Which amount of
interest expense should be reported in the government-wide financial statements for the year
ended December 31, 20X1?
$50,000
$300,000
$75,000
$100,000
Definition 5 of 70
When legally restricted and contractually required
When should governments maintain a capital projects fund, if at all?
What should be the accounting entry for the issuance of $100,000 of bonds in the general
fund?
What is true regarding a nonprofit statement of cash flows?
What is one of the main types of fiduciary funds?
, Term 6 of 70
How should wages and salaries be accounted for?
Based on the total revenue generated by the government
In the period earned as long as the government's obligations will be liquidated with
expendable available resources
When the government decides to allocate funds for salaries and wages
At the end of the fiscal year regardless of the government's financial standing
Term 7 of 70
A city is preparing to report on the pension trust fund for its employees. Where should this fund
activity be presented on the city's annual comprehensive financial report (ACFR)?
Collectibles are protected, kept unencumbered, cared for, and preserved.
In the statistical section
On the fiduciary fund financial statements only
As a transfer
Definition 8 of 70
Private-purpose trust
What is one of the three broad components of the statement of net position?
Why should governments separate resources into funds?
What is the issue of debt at relatively low, tax-exempt rates of interest and the investment
of the proceeds in taxable securities yielding a higher return?
What is one of the main types of fiduciary funds?
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