Assignment 24136

ACC410 Week 6 Homework Answers Submission Sheet Fall 2021

Name:

Homework Due

Points Possible

Points Received

Exercise 9-1

4

Continuing

8

Problem 9-4

8

Exercise 10-1

4

Continuing

8

Problem 10-8

8

Chapter 9:

Exercise 9-2 (Questions 1 through 10) textbook pages 406-407.

(Enter the only the letter of the appropriate amount next to the question number)

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Continuing Problem (Questions 1 through 8) textbook pages 411 – 2020 Town of Cary, NC CAFR is used for these questions found at https://www.townofcary.org/home/showpublisheddocument?id=25355

(Enter the answer to the question in the blanks provided.)

Activities accounted for in both internal service funds and major enterprise funds – _________________________________________________________________________________

_________________________________________________________________________________

__________________________________________________________________________

Could any of these activities have been accounted for in a general or other governmental fund? _________________________________________________________________________________

2. How are the internal service fund activities reported in the government-wide state of net position? – _________________________________________________________________

How are the internal service fund activities reported in the proprietary funds statement of net position? _______________________________________________________________

3. Did any of the internal service funds report significant operating surpluses or deficits for the year? Yes or No _____________________________________________________________

Were any accumulated significant net asset balances over the years not invested in capital assets? Yes or No ____________________________________________________________

4. Were any of the Town of Cary’s enterprise funds “profitable” during the year? Yes or No __

If so, what has the Town of Cary done with the “earnings”? __________________________

___________________________________________________________________________

Has Cary transferred them to the general fund? Yes or No ___________________________

5. Does the Town of Cary have revenue bonds outstanding that are related to business-type activities? Yes or No _________________________________________________________

If so, for what activities? ______________________________________________________
__________________________________________________________________________
__________________________________________________________________________

6. Does the Town of Cary, NC ‘s CAFR include a statement of cash flows for proprietary funds? Yes or No __________________________________________________________________

Is the statement a direct or indirect basis? ________________________________________

In how many categories are the cash flows presented? ______________________________

Which of these categories resulted in net cash inflows? _____________________________

Which resulted in net cash outflows? ____________________________________________

7. What was the total operating income? ___________________________________________

What was total net cash provided by operating activities? ____________________________

What accounts for the largest difference between these two amounts? _________________

8. Has the Town of Cary, NC entered into any service concession arrangements? Yes or No ___

Which specific ones, and why? _________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Problem 9-4 (questions 1-4) textbook page 413.

Journal entries – Internal Service Fund

Debit

Credit

(a)

(b)

(c)

(d)

Journal entries – General Fund

Debit

Credit

(a)

(b)

Would the establishment of the internal service fund result in a decrease in overall government costs (e.g. cash outflows)? Yes or No ___________________________

Would it result in a reduction in reported general fund expenditures? Yes or No _________ Explain:___________________________________________________

___________________________________________________________________

Suppose that in the following year, the city does not plan to acquire additional capital assets. Would general fund expenditures be greater if the internal service fund were to be established than if it were not? Yes or No ______________________________

Why? ________________________________________________________________

Chapter 10:

Exercise 10-1 (Questions 1 through 10) textbook pages 452-453.

(Enter the only the letter of the appropriate amount next to the question number)

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Continuing Problem (Questions 1 through 10) textbook pages 456 – 2020 Town of Cary, NC CAFR is used for these questions found at https://www.townofcary.org/home/showpublisheddocument?id=25355

(Enter the answer to the question next to the question number and letter if present)

Does the Town of Cary, NC maintain any permanent funds? Yes or No ________________

If so, are they major or non major funds?________________________________________

For what purpose? __________________________________________________________

Does the Town of Cary, NC maintain any fiduciary funds? Yes or No ___________________

For what purpose? __________________________________________________________

Does the Town of Cary, NC contribute to one or more pension plans? _________________

Are they defined benefit plans or defined contribution plans? _______________________

If defined benefit plans, are they single employer (maintained by the Town of Cary itself) or multiple-employer plans? _____________________________________________________

Does the Town of Cary, NC report pension expenses or expenditures? __________________

If so, in which fund or funds? ___________________________________________________

Does the Town of Cary, NC report pension liabilities? _______________________________

If so, in which fund or funds? ___________________________________________________

Does the CAFR indicate the actuarial value of plan assets and liabilities? ________________

Are the plans over or underfunded? _____________________________________________

Does the CAFR include the financial statements of the pension plan? Yes or No __________

Does the CAFR indicate that the pension plans issue their own reports? Yes or No ________

Are these publicly available? Yes or No __________________________________________

Did the pension investments have a “good year”? Yes or No _________________________

Does the CAFR indicate that the Town of Cary provides other postemployment benefits?

Yes or No __________ If so, what is the nature of these benefits? _____________________

How are they reported? _______________________________________________________

Does the Town of Cary, NC maintain any custodial funds? Yes or No ___________________

How many? _________________ For what purposes? _______________________________

______________________________________________________________________________________________________________________________________________________

Problem 10-8 (Questions 1-7) textbook pages 461.

Government/Proprietary fund: ___________________ or Not Applicable _______________

Fiduciary fund: ________________________________ or Not Applicable _______________

If Fiduciary fund, what type: _____________________

Justification: ________________________________________________________________

___________________________________________________________________________

Government/Proprietary fund: ___________________ or Not Applicable _______________

Fiduciary fund: ________________________________ or Not Applicable _______________

If Fiduciary fund, what type: _____________________

Justification: ________________________________________________________________

___________________________________________________________________________

Government/Proprietary fund: ___________________ or Not Applicable _______________

Fiduciary fund: ________________________________ or Not Applicable _______________

If Fiduciary fund, what type: _____________________

Justification: ________________________________________________________________

___________________________________________________________________________

Government/Proprietary fund: ___________________ or Not Applicable _______________

Fiduciary fund: ________________________________ or Not Applicable _______________

If Fiduciary fund, what type: _____________________

Justification: ________________________________________________________________

___________________________________________________________________________

Government/Proprietary fund: ___________________ or Not Applicable _______________

Fiduciary fund: ________________________________ or Not Applicable _______________

If Fiduciary fund, what type: _____________________

Justification: ________________________________________________________________

___________________________________________________________________________

Government/Proprietary fund: ___________________ or Not Applicable _______________

Fiduciary fund: ________________________________ or Not Applicable _______________

If Fiduciary fund, what type: _____________________

Justification: ________________________________________________________________

___________________________________________________________________________

Government/Proprietary fund: ___________________ or Not Applicable _______________

Fiduciary fund: ________________________________ or Not Applicable _______________

If Fiduciary fund, what type: _____________________

Justification: ________________________________________________________________

___________________________________________________________________________

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