Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Question
Chapter 7, Problem 2.10E
To determine
Identify the account in which the capital assets are recorded:
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Students have asked these similar questions
In which of the following funds is it appropriate to record depreciation of capital assets?
Multiple Choice
Capital projects fund.
General fund.
Permanent fund.
Internal service fund.
The acquisition of capital assets by a special revenue fund would be shown as:
O a. long term asset
O b. short term asset (supplies)
O c. expenditure
O d. cannot have capital acquisitions in governmental funds
Oe. expense
When an asset acquired through government grants is recorded using the capital approach,
Select one:
a. assets and liabilities increase by the cost of the asset.
b, assets and equity increase by the fair value of the asset.
C. assets and equity increase by the cost of the asset.
d. assets and liabilities increase by the fair value of the asset.
Chapter 7 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 7 - When is a Capital Projects Fund used by a...Ch. 7 - Prob. 2QCh. 7 - What is the life cycle of a Capital Projects Fund?Ch. 7 - Why is each significant capital project usually...Ch. 7 - In what situations could several capital projects...Ch. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Which of the following general government capital...Ch. 7 - Budgets for Capital Projects Funds are a. often...Ch. 7 - Which of the following are sometimes reported as...Ch. 7 - Wakefield Heights sold 6,000,000 of general...Ch. 7 - Which of the following statements regarding the...Ch. 7 - Common expenditures in a Capital Projects Fund...Ch. 7 - Prob. 1.7ECh. 7 - In practice, which of the following is false...Ch. 7 - The funding sources for a Capital Projects Fund...Ch. 7 - Prob. 2.2ECh. 7 - When grant resources are received before...Ch. 7 - Bonds are sold to finance the construction of a...Ch. 7 - After restricted and committed levels of fund...Ch. 7 - Which of the following would not be reported on...Ch. 7 - The City of Hope received an unrestricted grant in...Ch. 7 - Expenditures are made in a Capital Projects Fund...Ch. 7 - A GAAP-based Statement of Revenues, Expenditures,...Ch. 7 - Prob. 2.10ECh. 7 - (General Ledger Entries) The following...Ch. 7 - (Long-Term Debt Issuances) Swenson Township issued...Ch. 7 - (Short Discussion and Analysis) Briefly discuss...Ch. 7 - (Statement of Revenues, Expenditures, and Changes...Ch. 7 - (Multiple Choice Problems and Computations)...Ch. 7 - Prob. 2PCh. 7 - (Statement of Revenues, Expenditures, and Changes...Ch. 7 - Prob. 6PCh. 7 - (CPF Journal EntriesBlue Earth County, Montana)...
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Similar questions
- Why is depreciation recorded as an expense in proprietary funds, but not as an expenditure in governmental-type funds?arrow_forwardExtra money was left over from a construction project is transferred for payment of interest on general obligation bonds used to finance the project. Which funds would be involved in this transfer of cash? A) Capital Projects Fund & Debt Service Fund. B) Agency Fund & Debt Service Fund. C) Capital Projects Fund & General Fund. D) Capital Projects Fund & Agency Fund.arrow_forwardS1: Government grant related to depreciable asset is usually recognized as income over the useful life of the asset and in proportion to the depreciation of the asset. S2: Government grant related to non-depreciable asset that requires fulfillment of certain conditions should be recognized as income immediately.arrow_forward
- 6. Statement 1: An entity that borrows funds specifically for the purpose of obtaining a qualifying asset shall determine the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditure of that asset. Statement 2: An entity that borrows funds generally and uses them for the purpose of obtaining a qualifying asset shall determine the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. a. Only the first statement is correct. b. Only the second statement is correct. C. Both statements are correct. d. Neither of the statements is correct.arrow_forwardUnder IFRS a. research and development expenditures are expensed in the period incurred. b. research and development expenditures are capitalized and amortized. c. development expenditures that meet certain criteria are capitalized and amortized; research expenditures are expensed in the period incurred. d. research expenditures that meet certain criteria are capitalized and amortized; development expenditures are expensed in the period incurred.arrow_forwardThe acquisition of capital assets by an internal service fund would be shown as: O a expense O b. long term asset Oc expenditure Od. short term asset (supplies) O e. cannot have capital acquisitions in govermmental fundsarrow_forward
- During the construction period of these assets, the cost of the construction shall be charged to construction in progress account and the same shall be credited upon completion. Assets under this category are not subject to depreciation. a) Public infrastructures b) Other leasehold improvements c) Leasehold improvements- land d) Land improvementsarrow_forward7. Which of the following statements is true regarding capitalization of interest? A) The minimum amount of interest to be capitalized is determined by multiplying a weighted average interest rate by the amount of average accumulated expenditures on qualifying assets during the period B) Interest cost capitalized in connection with the purchase of land to be used as a building site should be debited to the land account and not to the building account. C) The amount of interest cost capitalized during the period should not exceed the actual interest cost incurred. D) When excess borrowed funds not immediately needed for construction are temporarily invested, any interest earned should be offset against interest cost incurred when determining the amount of interest cost to be capitalized.arrow_forwardWhich of the following assets do not qualify for capitalization of interest costs incurred during construction of the assets? Select one: a. Assets not currently undergoing the activities necessary to prepare them for their intended use. b. Assets under construction for a company's own use. c. Assets intended for sale or lease that are produced as discrete projects. d. Assets financed through the issuance of long-term debt.arrow_forward
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