Reference no: EM131037862

1. (TCO B) Generally Accepted Accounting Principles (GAAP) applicable to state and local governments require that
only the government funds and proprietary funds should be established.

only those funds required by law, GASB standards, and sound financial administration should be established.

only those required by law should be established.

All categories of funds must be established.

2. (TCO D) Which of the following would properly be reported in the operating statement of a governmental fund?
Interest on a tax anticipation note issued and repaid during the period.

Depreciation expense.

Amortization expense.

A grant that is intended to finance activities of the following period.

3. (TCO E) The City of Green Hills constructed a new storage facility using the city's own public works employees. Construction costs were incurred in the amount of $850,000, plus $30,000 in interest on short-term notes used to finance construction. What amount should be capitalized as a general capital asset?

$880,000.

$820,000.

$850,000.

$0

4. (TCO H) In audits of state and local government units, which of the following paragraphs may not be required in the auditor's report for every audit?

Scope paragraph

Explanatory paragraph

Opinion paragraph

Introductory Paragraph