CPFO ACCOUNTING FINAL EXAM CONSOLIDATED – PART
3 – CHAPTERS 18-19, 29, 32, 34-36;41 44-47 QUESTIONS
AND VERIFIED ANSWERS
Which of the following would be rthe eported as a deferred item in the
governmental fund financial stthe the the atements, but not in the governthe
ment-wide financial statements?
A. Unavailable revenue
B. Unearned revenue
C. Deferred charge -the difference betthe ween net carrying amount of refunded
debt and reacquithe sition price
D. All of the above
E. None of the above
[Correct response = A]
The deferral of revenue, because it is unavailable, is unique to financial
statements prepared using the current financial resources measurement focus
(governmental funds).
Source: 2021 eGAAFR 2.18 Exercises
2. Which of the following accounts would appear in the statement of financial
position for governmental funds?
A. Discount on long-term debt
B. Bonds payable
C. Both A and B
D. Neither A nor B
[Correct response = D]
For governmental funds, cash is the only account on the statement of financial
position affected by the issuance of long-term debt.
Source: 2021 eGAAFR 2.18 Exercises
Read More
,Which of the following accounts would appear in the statement of financial
position for governmental activities?
A. Discount on long-term debt
B. Bonds payable
C. Both A and B
D. Neither A nor B
[Correct response = C]
For governmental activities (economic resources measurement focus/accrual
basis of accounting), the issuance of long-term debt primarily affects the
statement of financial position.
Source: 2021 eGAAFR 2.18 Exercises
The amount of the adjustment for capital outlays normally should equal the
amount reported as capital outlays on the governmental fund statement of
revenues, expenditures, and changes in fund balances.
A. True
B. False
[Correct response = B]
The character classification capital outlays normally is used only in capital
projects funds. Capital acquisition in the general fund typically is reported in the
appropriate functional category. Moreover, the amount reported as capital
outlays in a capital projects fund may include amounts related to a project, but
not ultimately capitalized (for example, furnishings). The worksheet conversion
adjustment would include all amounts ultimately capitalized (including
expenditures reported in the various functions of the general fund) and only
capitalized amounts (excluding capital outlays reported in capital projects funds
for amounts that were not ultimately capitalized).
Source: 2021 eGAAFR 2.18 Exercises
Which of the following adjustments involves only a change in terminology,
rather than an adjustment to the measurement focus or basis of accounting, for
conversion from a governmental fund to government-wide activities?
,A. Sale of capital assets
B. Sale of fund assets
C. Both A and B
D. Neither A nor B
[Correct response = B]
In the case of the sale of an asset that is reported in a governmental fund
(investments), the only difference between the treatment in the governmental
fund financial statements and the government-wide financial statements would
be one of terminology (revenue v. gain).
Source: 2021 eGAAFR 2.18 Exercises
Which of the following would be reflected as an adjustment to fund balance/net
position on the adjustments worksheet?
A. Revenues of the current period related to prior periods
B. Unavailable revenue - prior periods
C. Unavailable revenue - current period
D. All of the above
E. Both A and B
[Correct response = E]
Revenues are closed to fund balance at the end of each reporting period;
therefore, adjustments to amounts that would have been reported as revenues in
a prior period must be made to fund balance, which is ultimately reclassified as
“net position.”
Source: 2021 eGAAFR 2.18 Exercises
How should a government record the adjustments made to convert the
governmental funds to governmental activities?
A. In the general fund
B. In a worksheet
C. In a conversion/consolidation fund
D. Either B or C
, [Correct response = D]
The general ledger accounts for governmental funds are not affected by the
adjustments made on the worksheet used to prepare the government-wide
financial statements. Governments can use a worksheet or an internal
conversion/consolidation fund within their general ledger system to record the
necessary adjustments.
Source: 2021 eGAAFR 2.18 Exercises
Which of the following statements is true?
A. Consolidation only affects governmental funds.
B. Consolidation only affects proprietary funds.
C. Consolidation affects both governmental funds and proprietary funds.
[Correct response = C]
Balances and transactions associated with interfund activity must be eliminated
in the process of preparing the government-wide financial statements. This
process of consolidation affects both governmental funds and proprietary funds.
Source: 2021 eGAAFR 2.18 Exercises
An internal service fund is deemed to predominately service governmental
funds. Which of the following items from the internal service fund statement of
net position would be incorporated directly into governmental activities in the
government-wide statement of net position?
A. Assets
B. Liabilities
C. Both A and B
D. Neither A nor B
[Correct response = C]
Although they are classified as proprietary, if an internal service fund is
determined to provide services predominately to governmental funds, then it is
incorporated as part of governmental activities for purposes of government-
wide financial reporting. When so, internal service funds are treated essentially
as though they were an additional governmental fund type for purposes of
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper luzlinkuz. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €14,64. Je zit daarna nergens aan vast.
