Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 5, Problem 17.4EP
A capital projects fund would probably not be used for which of the following assets?
- a. Construction and installation of new shelving in the mayor’s office.
- b. Financing and construction of three new fire substations.
- c. Purchase and installation of an entity-wide integrated computer system (such as SAP).
- d. Replacing a bridge.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
River City needs to raise money to build a bridge. Designing the bridge and constructing it will require a long-term investment of funds. What source of financing would be representative of such a long-term funding requirement?
Multiple Choice
commercial paper
issuance of bonds
line of credit
factoring
Incurring construction costs on a major
general government capital project would
.a
Increase capital assets in the General
.Fund
.b
Increase capital assets in a Capital
.Projects Fund
.C
Decrease cash in the General Capital
.Assets accounts
.d
Decrease fund balance in a Capital
.Projects Fund
A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund? Choose the correct.a. Never; the work is reported in the capital projects funds.b. Only if the city is secondarily liable for any debt incurred to finance construction costs.c. Only if the city is in no way liable for the costs of the construction.d. In all cases.
Chapter 5 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 5 - What are general capital assets? How are they...Ch. 5 - Explain what disclosures the GASB requires for...Ch. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - What is the accounting difference between using...Ch. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - What is a service concession arrangement, and why...
Ch. 5 - Prob. 13CCh. 5 - Prob. 14CCh. 5 - Prob. 15CCh. 5 - Under GASB standards, which of the following would...Ch. 5 - Two new copiers were purchased for use by the city...Ch. 5 - Maxim County just completed construction of a new...Ch. 5 - A capital projects fund would probably not be used...Ch. 5 - Machinery and equipment depreciation expense for...Ch. 5 - Prob. 17.6EPCh. 5 - Prob. 17.7EPCh. 5 - Callaway County issued 10,000,000 in bonds at 101...Ch. 5 - Neighborville enters into a lease agreement for...Ch. 5 - Neighborville enters into a lease agreement for...Ch. 5 - Prob. 17.11EPCh. 5 - Prob. 17.12EPCh. 5 - Prob. 17.13EPCh. 5 - Arbitrage rules under the Internal Revenue Code a....Ch. 5 - Prob. 17.15EPCh. 5 - Make all necessary entries in the appropriate...Ch. 5 - Prob. 19EPCh. 5 - Prob. 20EPCh. 5 - In the current year, the building occupied by...Ch. 5 - Prob. 22EPCh. 5 - Make all necessary entries in a capital projects...Ch. 5 - The year-end pre-closing trial balance for the...Ch. 5 - Prob. 25EPCh. 5 - This year Riverside began work on an outdoor...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The Department of Transportation wishes to choose between two alternative accident prevention programs. It has identified three benefits to be gained from such programs: 1. Reduced property damage, both to the vehicles involved in an accident and to other property (e.g., real estate that may be damaged at the scene of an accident) 2. Reduced injuries 3. Reduced fatalities The department’s experts are willing to provide dollar estimates of property damage savings that are expected to accrue from any program, but they will estimate only the number of injuries and fatalities that may be averted. The first program is relatively moderate in its costs and will be concentrated in a large city. It involves upgrading traffic signals, improving road markers, and repaving some potholed streets. Because of the concentration and value of property in the city, savings from reduced property damage are expected to be substantial. Likewise, a moderate number of traffic-related deaths and…arrow_forwardThe Department of Transportation wishes to choose between two alternative accident prevention programs. It has identified three benefits to be gained from such programs: 1. Reduced property damage, both to the vehicles involved in an accident and to other property (e.g., real estate that may be damaged at the scene of an accident) 2. Reduced injuries 3. Reduced fatalities The department’s experts are willing to provide dollar estimates of property damage savings that are expected to accrue from any program, but they will estimate only the number of injuries and fatalities that may be averted. The first program is relatively moderate in its costs and will be concentrated in a large city. It involves upgrading traffic signals, improving road markers, and repaving some potholed streets. Because of the concentration and value of property in the city, savings from reduced property damage are expected to be substantial. Likewise, a moderate number of traffic-related deaths and…arrow_forwardThe Dudumwezi city Council is a considering the introduction of speed trains in order to deal with the problem of traffic congestion in the city. The project will be implemented through the PPP model. Councilors are skeptical about the financial viability of the project and have asked for a financial viability assessment of the project. To this end the council management has engaged a consultant to carry out this assessment. Required:To aid the Councilor’s, explain why it is important to carry out a cash flow analysis in project finance and the five factors that need to be considered when calculating cash flows.arrow_forward
- Capital investment projects include proposals for all of the following except A. the acquisition of government mandated pollution control equipment. B. the expansion of existing product offerings. C. additional research and development facilities. D. refinancing existing working capital agreements.arrow_forwardD- Coll corporation, a leading entity in City planning, and you are part of a city planning tee working on a sustainable urban development project. This case study involves ial planning, spatial considerations, and optimization of transportation networks. city planning committee is allocating funds for a sustainable urban development project. e total budget for the project is $3,000,000 (without GST). The committee has divided the udget among three key areas: Residential Infrastructure, Commercial Zones, and Green Spaces. 1. The committee decides to allocate budget over the three areas at the ratio of 4:3:1. Divide the total budget based on the ratio and identify the amount allocated for each key area. 2. Express the budget allocation as a percentage of the total budget. After expressing the budget in percentages, answer the following questions: a. What percentage of the total budget is allocated to Residential Infrastructure compared to Commercial Zones? b. If the budget for Green…arrow_forwardThe City of Kastle purchased a vehicle for the parks department. If the operations of the parks department are financed by general revenues, an asset would be recorded in which journal(s)? General Governmental Fund Activities A) B) Yes No No No No Yes Yes Yes Multiple Choice Choice Aarrow_forward
- Construction of a municipal courthouse would typically be accounted for using a: Group of answer choices a.) Capital projects fund b.) Permanent fund c.) General fundarrow_forwardA city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund? Never; the work is reported in the capital projects funds. Only if the city is secondarily liable for any debt incurred to finance construction costs. Only if the city is in no way liable for the costs of the construction. In all cases.arrow_forwardThe road development authority is evaluating the costs and benefits of three alternative routes for a mountain road that will connect a previously inaccessible community with the nearest town. This is a social welfare project and therefore the authority is determined to implement it even if there are no economic benefits to the authority. However, indirect economic benefits to the government and society are anticipated as indicated in the table below. Three mutually exclusive plans for routing the road are being considered. All three alternatives are assumed to have an economic life of 50 years. The MARRIS assumed as 8% per year. (a) Which investment has highest B-Cratio? (b) Which alternative should be selected if the authority must implement the project? B-CAnalysis method and give reasons for your answer. Route X Route Y Route Z Construction Cost 185,000 220,000 290,000 Annual maintenance cost 2,500 3,000 4,000 Annual savings on service provision to the community Annual benefit from…arrow_forward
- What is the difference between forecasting and budgeting? Provide examples. Who funds law enforcement agencies? What are some possible new sources of funding for a police department, a municipal court, and a state prison?arrow_forwardThe capital projects fund of Plant City completed construction of a new building. The building account should be reported in the: I. capital projects fund balance sheet. II. general fund balance sheet. III. government-wide statement of net position. A) II only. B) Il only. C) I only. D) I and II only.arrow_forwardWhich of the following would be considered a general capital asset? Select one: a. Real estate purchased with the assets of a pension trust fund. b. A vehicle purchased from General Fund revenues. c. A vehicle purchased and maintained by an enterprise fund. d. A computer purchased from revenues of an internal service fund and used by the supplies department.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
What is Fund Accounting?; Author: Aplos;https://www.youtube.com/watch?v=W5D5Dr0j9j4;License: Standard Youtube License