PHIL 210 Chapter 8 & 9 Quiz latest (100% CORRECT ANSWERS) – Strayer University | PHIL 210 Chapter 8 & 9 Quiz latest (100% CORRECT ANSWERS)

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PHIL 210 Chapter 8 & 9 Quiz 2020 – Strayer University Chapter 8 – 9 Question 1 0 out of 4 points Industrial development bonds are issued in the name of a government with the proceed... s used to attract private businesses to a community. Which of the following is a true statement about industrial development bonds? Answer Question 2 4 out of 4 points Sun City is located in Hailey County. Sun Valley School District encompasses all of Sun City and some of Hailey County. Property in Sun City is assessed at $400 million; property in Hailey County is assessed at $800 million; property in Sun Valley School District is assessed at $600 million. The total debt outstanding for Sun City is $30 million; Hailey County is $50 million; Sun Valley School District is $45 million. Compute the amount of direct and overlapping debt for Sun City. Answer Question 3 0 out of 4 points The Southside City has $95 million of debt recorded in its Schedule of Changes in Long-Term Obligations, made up of $60 million of general obligation debt, $2 million of compensated absences payable, $8 million claims and judgments, and $25 million of obligations under capital leases. The State limits the amount of general obligation debt that can be issued by a City to 20% of the assessed value of taxable property. The assessed value of property in Southside City is $500 million. The amount of legal debt margin for Southside City is Answer Question 4 4 out of 4 points Southwest City enters into a lease agreement that contains a nonappropriation clause. The clause Answer Question 5 4 out of 4 points A governmental entity that is unable to satisfy claims against it Answer Question 6 4 out of 4 points A state created a Housing Authority to provide financing for low-income housing. The Authority issues bonds and uses the proceeds for that purpose. Currently the Authority has outstanding $200 million in bonds backed by the State’s promise to cover debt service shortages should they arise. The State Constitution specifically limits the State to no more than $2 million in general obligation debt. How can the state officials defend the $200 million in debt outstanding? Answer Question 7 0 out of 4 points The City of Pocahontas issued $20 million in general obligation bonds at par. The City loaned the proceeds to Domsee Fish Processors to expand the size of their facility, which would allow Domsee to hire additional workers. The loan payments from Domsee to the City are established to match the principal and interest payments on the bond issue. The bonds are payable exclusively from the loan repayments by Domsee. The bonds are secured by the additional plant facilities built by Domsee. Where should the City report the bonds on the annual financial report? Answer Question 8 4 out of 4 points Overlapping debt should be reported in which of the following ways? Answer Question 9 0 out of 4 points To seek protection under the Federal Bankruptcy Code, a governmental entity must Answer Question 10 4 out of 4 points Obligations of property owners within a particular government for their proportionate share of debts of other governments with whom they share boundaries is Answer Question 11 4 out of 4 points Governmental entities enter into capital leases, rather than conventional buy and borrow arrangements for which of the following reasons? Capital leases Answer Question 12 0 out of 4 points In governmental fund-type financial statements, the assets acquired under a capital lease would be reported at Answer Question 13 0 out of 4 points Pulling County has a December 31 fiscal year-end. In November, the County borrowed $8 million from a local bank, due in six months at 6% interest, to finance general government operations. The county pledges property tax revenues to secure the loan. At year-end, how should the bank note be displayed in the fund financial statements? Answer Question 14 4 out of 4 points A City entered into a long-term capital lease for some office equipment. Assuming the city maintains its books and records in a manner to facilitate preparation of fund financial statements, what entry would be made in the General Fund to record this event? Answer Question 15 0 out of 4 points In the government-wide financial statements, long-term liabilities of governmental entities are generally reported at Answer Question 16 0 out of 4 points Which of the following is NOT true about internal service funds as reported in the fund financial statements? Answer Question 17 4 out of 4 points In the Statement of Net Assets, the net assets of a proprietary fund should be displayed in which of the following categories? Answer Question 18 4 out of 4 points During the year the City’s Self-Insurance Internal Service Fund billed the General Fund $300,000 for ‘premiums,’ of which $30,000 was for catastrophic losses and the balance was the premium computed on an actuarially-determined basis. During the year the City incurred $250,000 in claims losses. The total amount transferred to the Self-Insurance Fund by the General Fund was $310,000.The amount the City General Fund can recognize as expenditure is Answer Question 19 4 out of 4 points Which of the following is NOT a budget typically prepared for an activity accounted for in a proprietary fund? Answer Question 20 0 out of 4 points On the fund financial statements, internal service activities should be presented Answer Question 21 4 out of 4 points When a governmental enterprise fund has restricted assets on its balance sheet which of the following is a true statement? Answer Question 22 4 out of 4 points Which of the following are required basic statements of a proprietary fund? Answer Question 23 0 out of 4 points During the year the City’s Self-Insurance Internal Service Fund billed the General Fund $300,000 for ‘premiums,’ of which $30,000 was for catastrophic losses and the balance was the premium computed on an actuarially-determined basis. During the year the City incurred $250,000 in claims losses. The total amount transferred to the Self-Insurance Fund by the General Fund was $310,000. The amount the City Self-Insurance Fund can recognize as revenue is Answer Question 24 4 out of 4 points Marsh Lake County operates a solid waste landfill that is accounted for in a governmental fund. The County calculated this year’s portion of the total closure and post closure costs associated with the landfill to be $600,000. The entry to record this cost should be Answer Question 25 4 out of 4 points Any internal service fund balances that are not eliminated in the consolidation process should generally be presented on the government-wide financial statements Answer Question 26 4 out of 4 points A proprietary fund of a governmental entity has donor-restricted assets on its balance sheet. Which of the following best describes where and how those assets will generally be displayed? Answer 0 out of 4 points The City of Brockton voted to establish an internal service fund to account for its printing services. The City transferred $500,000 cash from the General Fund to the newly created internal service fund. The appropriate entry in the General Fund to account for this transfer would be a credit to cash for $500,000 and a debit for $500,000 to Answer Cash flows from Operating Activities does NOT include which of the following as cash inflows? Answer Selected Answer: Interest and dividends earned. Correct Answer: Interest and dividends earned. Question 29 0 out of 4 points Which of the following is NOT a valid reason for governmental entities to engage in business-type activities? Answer Question 30 0 out of 4 points Which of the following is NOT a rationale/justification for reporting the business-type activities of a government in a separate fund? Answer [Show More]

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