Answered: Three Categories of program revenue are…

Three Categories of program revenue are reported in the statement of activities: Charge for service, operating grant and contribution and Capital grant and contribution. O a. True O b. False

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 1MC: A donated fixed asset (from a governmental unit) for which the fair value has been determined should...

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Three Categories of program revenue are reported in the statement of activities: Charge for service, operating grant and contribution and Capital grant and
contribution.
O a. True
O b. False

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The government-wide statement of activities includes which of the following characteristics (may be more than one): Net program expense is a measure of the extent to which a program is self-financing (versus needs subsidies from general revenue) Calculates net program revenue or expense by subtracting applicable revenues from expenses Internal balance is reported as a transfer between activities
Expenses that are specifically identified with a program or function are reported in the government-wide statement of activities as: a. Specific expenses. b. Direct expenses. c. Incremental expenses. d. Program expenses.
What is the purpose of a special revenue fund? Choose the correct.a. To account for revenues legally or externally restricted as an operating expenditure.b. To account for ongoing activities.c. To account for gifts when only subsequently earned income can be expended.d. To account for the cost of long-lived assets bought with designated funds.
In a governmental fund, which of the following is considered an expenditure? a. The purchase of a capital asset b. The consumption of supplies c. Salaries earned by employees d. All of the above
What is the primary difference between revenue grants and capital grants in accounting for government grants? A. Revenue grants are recognized in the income statement immediately, while capital grants are recognized as deferred income. B. Revenue grants are used for long-term asset acquisition, while capital grants support day-to-day operating activities. C. Both revenue and capital grants are recognized in the income statement immediately. D. Capital grants are not accounted for in financial statements.
The funds allocated to products and services used to satisfy citizens' needs are classified as ___________________ expenditures. a. Capital expenditure b. Consumption c. Utilization d. Transfer payments
Which among the following process is related to fund allocation for different activities? a.Budgeted appropriation b.Disbursement c.Encumbrance d.Reservation
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Which of the following funds of a governmental unit recognizes revenues in the accounting period only when they are both available and measurable? General Fund Enterprise Fund a. Yes No b. No Yes c. Yes Yes d. No No
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Fixed assets donated to a governmental unit should be recorded a. at estimated fair value when received. b. at the lower of donor’s carrying amount or estimated fair value when received. c. at the donor’s carrying amount. d. as a memorandum entry only.
In the case of grants related to an asset, which of these accounting treatments (balance sheet presentation) is prescribed by IAS 20? (a) Record the grant at a nominal value in the first year and write it off in the subsequent year. (b) Either set up the grant as deferred income or deduct it in arriving at the carrying amount of the asset. (c) Record the grant at fair value in the first year and take it to income in the subsequent year. (d) Take it to the income statement and disclose it as an extraordinary gain.