[raven]

Hi

I’m having a hard time understanding govt accounting and I’m getting most of the questions wrong. Will someone please explain why the correct answer is ZERO?

Why doesn’t “fire @35,393” meet the revenue test? The amount is greater than the 27,117 @ 5%. Why doesn’t “fire @28,220” and “grants @24,022” meet the exp test?

*** edit: the formatting of the question is messed up. I don’t know how to fix it so it’s easier to read. If you’re using ninja mcq, it is question # 1163 4b2. ***

Question:

The following information is applicable to the funds of Fronk County.

Expenditures

Funds Assets Liabilities Revenues Expenses

---

---

---

---

---

General fund $118,211 $15,647 $203,151 $136,554

Special Revenue Funds:

911 Emergency 4,581 310 4,354 3,194

Fire District 38,550 3,173 35,393 28,220

Parks 15,087 818 16,081 11,729

Grants 10,495 10,495 24,929 24,022

Hotel/Motel Tax 816 816 3,002 2,158

Capital Project Funds:

20X0 Sales Tax $ 66,719 $11,288 $ 11,424 $ 40,115

Sales Tax CIP 4,206 326 762 900

Roads 1 0 60 13

Parks 99,621 8,276 704 35,748

Schools 125,472 3,724 102,771 32,715

Corrections 1,038 18 61 212

Library 883 289 84 992

Total Governmental:

$485,680 $55,180 $402,776 $316,572

Enterprise Funds:

Water/Sewer $1,346,318 $505,531 $136,634 $ 82,855

Airport 24,993 76 1,053 1,443

Golf 3,418 129 955 1,060

Fairgrounds 3,280 0 656 275

ISP Services 6,060 417 261 5,288

Total Enterprise:

$1,384,069 $506,153 $139,559 $ 90,921

How many of the special revenue funds would be considered major funds?

A- pass
F- pass
R- pass
B - August 2014 - pass - YAY!!!!

[raven]

Answer:

Fronk County's main operating fund (the general fund) should be reported as a major fund. Per GASB 2200.159, other individual governmental and enterprise funds are to be reported in separate columns as major funds based on these criteria:

“The total of assets and deferred outflows of resources, the total of liabilities and deferred inflows of resources, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding element(s) total (total assets and deferred outflows of resources, total liabilities and deferred inflows of resources, and so forth) for all funds of that category or type (that is, total governmental or total enterprise funds), and

“The same element(s) that met the 10 percent criterion…above is at least 5 percent of the corresponding element total for all governmental and enterprise funds combined.”

Based on the aforementioned criteria, the following table depicts both the 10% and 5% thresholds:

Funds Assets Liabilities Revenues Expenditures

---

---

---

---

---

Total governmental 485,680 55,180 402,776 316,572

10% governmental 48,568 5,518 40,278 31,657

Total enterprise 1,384,069 506,153 139,559 90,921

10% enterprise 138,407 50,615 13,956 9,092

5% overall test 93,487 28,067 27,117 20,375

None of the special revenue funds met or exceeded both the 10% and 5% criteria.

A- pass
F- pass
R- pass
B - August 2014 - pass - YAY!!!!

[Anonymous]

Bump.

Anyone know?

[Author]

Replies