QUESTION 18 Internal service funds are most commonly reported in which section o

Question

QUESTION 18 Internal service funds are most commonly reported in which section of the Government-wide financial statements? O A None of these O B. Governmental Activities ° C. Component Unit O D. Business-type Activities 2 points QUESTION 19 Which of the following would not be determined to result in asset impairment under GASB? O A- A truck is at the end of its useful life. O B. A building is damaged by a hurricane. O C. New technology renders previous equipment obsolete. 2 points O D. A fire destroys a city building

Explanation / Answer

Question 18) B) Government Activities

why B)

Internal Service Funds are there for accounting of any government department activity provides Service to other department of government. So most likely to be classified as Government Activity.

Question 19) A) A truck with end of useful life.

Because the treak wont have any remaining value in books of account expect scrap. There is no chance for impairment. And cost is already depreciated in accounts.

All other 3 case have to be impaired as value reduced.

Question 20)B Must capitalize infrastructure.

   why not other options? Government generally ha infrastructure and it is not optional to report.

question21) B) Debit Net position Credit Accumulated depreciation

For prior period adjustment has to reduce amount in retained earnings and as usual credit(add) depreciattion to Accumulated depreciation of paticular asset)

Question22) B) Fund Balance

In Goverment Statement difference between Asset and Liability(Net Asset) Is called as Fund Balance.

This is further divided in Reserved and Unreserved Fund Balance,divided in basis of apportion for next budget or not.

QUESTION 23) D)Record Depreciation under Modified approach.

Modified Approach is Reporting of Cost and consequences of keepin that asset.

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