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WGU D250 Pre-Assessment Questions With 100% Solved Solutions!!
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WGU D250 Pre-Assessment Questions With 100% Solved Solutions!!
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Name: Score:405 Multiple choice questions
Definition 1 of 405
o FASB Statement No 71 issued in 1982, stipulated that revenues, expenses and resources should
be recognized in accordance with the rules established by a regulator
What is rate of return regulation?
Why is rate of return regulation necessary?
What types of entities are subject to rate of return regulation?
What do the rates that I see on my electric utility bill mean?
How is the revenue requirement established?
What happens after the revenue requirement is established?
Estimating property tax revenue
Enterprise Funds Segment Information
Special purpose entity requirements for colleges and universities
Enterprise funds Regulatory Accounting Principles (RAP)
,Definition 2 of 405
• When refunding (new) bonds are issued
o Debt Service Fund
Debit: Cash $100,000
Credit: Other Financing Sources - Proceeds of refunding (new) bonds) 100,000
o If old bonds are not retired by the end of the fiscal year, both issues would be reported as
long-term debt in governmental activities
• Assuming old bonds are retired shortly after issue of refunding bonds
o Debt Service Fund
Debit: other financing resources - Refunded bonds 100,000
Credit: cash 100,000
Note: report only the new issue as debt in governmental activities
NFP Expenses
Entries in DFS, assuming that because of reduced market rates of interest, $100,000 of
previously issued bonds are refunded by a new $100,000 bond issue with lower interest
payments. What is the accounting for this?
A contract was let in the amount of $50,000 with an architectural firm to complete the
architectural design for the new city office building. The firm for which an encumbrance of
50,000 had been recorded tendered its final billing in the amount of $48,000. The city
immediately paid the amount due. The following entry would be required in the capital
projects fund
Expenditures
Definition 3 of 405
Measurement focus and basis of accounting
Approaches for infrastructure accounting
Governmental funds measurement focus
Revenues and Other Financing Sources
,Definition 4 of 405
General Fund
Debit: Expenditures - acquisition of capital assets 3,000,000
Credit: other financing sources - installment note proceeds 3,000,000
Debt service fund
Debit: expenditures - installment note interest 180,000
Credit: Cash 180,000
Debit: expenditures - installment note principal 942,330
Credit: Cash 942,330
Government-wide (statement of net position) - capitalize and depreciate
General Capital Assets Valuation
The city acquired a computer system for all its departments at a cost of $3 million, and paid
in cash. It has a useful life of 3 years
It acquired the same computer, issuing a three-year, 6%, installment note for the purchase
price. During the year it paid the first installment of $1,122,330 (interest of $180,000 and
principal of $942,330). Account for this
In 2017 the City ordered supplies that cost $4 million, received supplies that cost $3.5
million, paid for supplies that cost $3 million and used supplies that cost $3.3 million.
Common entries?
, Definition 5 of 405
o Accounts for financial resources that are restricted or committed for specific purposes other
than debt service or capital projects
o Accounting and budgeting usually identical to general fund
o Examples of special revenue funds:
Public safety
Public works
Health and housing
Parks and recreation
Other
Each can include budgeted and nonbudgeted items
Use an agency fund if
Special revenue funds
Financial statements
Financial indicators
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