Quiz Questions Over Government Statements

1. The City of Sunrise levied property taxes in 2004 in the amount of $10 million. It is estimated that 2% will be uncollectible. During 2004, $9,000,000 was collected, and it is anticipated and recognized that $400,000 will be collected during the next 60 days. When moving from the changes in fund balances in the Statement of Revenues, Expenditures, and Changes in Fund Balances to the changes in net assets in the Statement of Activities, what will be the adjustment?

An increase of $400,000

An decrease of $400,000

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2. Which of the following must be done to convert modified accrual basis to accrual basis?

Change expenditures for debt service principal to reduction of liabilities

Make adjustments to revenues to convert to the accrual basis of revenue recognition

Record capital assets

All of the above

3. Which of the following is true regarding the government-wide financial statements?

Government-wide statements are prepared using the economic resources measurement focus and accrual basis of accounting.

Government-wide statements include the Statement of Net Assets, the Statement of Activities, and the Statement of Cash Flows.

Both of the above are true.

Neither of the above is true.

4. Which of the following is true regarding the reporting of general fixed assets by state and local governments?

Fixed assets are reported in the governmental funds Balance Sheet.

Fixed assets are reported in the government-wide Statement of Net Assets.

Both of the above.

Neither of the above.

5. When are the entries to convert modified-accrual statements to accrual statements post in the individual fund general ledgers?

After preparing the government wide statement

After the closing entries

After you have completed all adjustments

None of the above, they are not posted