Accounting for Governmental and Nonprofit Entities 17th Edition Solutions Manual Test Bank | Depreciation | Intangible Asset

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Accounting for Governmental and Nonprofit Entities 17th Edition Solutions Manual Test Bank accounting for governmental and nonprofit entities 17th edition pdf accounting for governmental and nonprofit entities pdf accounting for governmental and nonprofit entities 17th edition solutions accounting for governmental and nonprofit entities 16th edition accounting for governmental and nonprofit entities 17th edition test bank accounting for governmental and nonprofit entities solutions accounting for governmental and nonprofit entities 15th edition accounting for governmental and nonprofit entities 17th edition ebook
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  5-1 Accounting for Governmental and Nonprofit Entities 17th Edition Solutions Manual Reck Lowensohn Wilson Completed download: http://testbankarea.com/download/accounting-governmental-nonprofit-entities-17th-edition-solutions-manual-reck-lowensohn-wilson/  TEST BANK for Accounting for Governmental and Nonprofit Entities 17th Edition by Jacqueline Reck, Suzanne Lowensohn, Earl Wilson Completed download: http://testbankarea.com/download/accounting-governmental-nonprofit-entities-17th-edition-test-bank-reck-lowensohn-wilson/  CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS AND CAPITAL PROJECTS OUTLINE Number Topic Type/Task Status (re: 16/e) Questions: 5-1 Defining and reporting general capital assets Define and explain Same 5-2 Capital asset disclosures Explain Same 5-3 Capital asset valuation Explain New 5-4 Capital lease accounting Describe Same 5-5 Intangible assets Describe Same 5-6 Modified approach for infrastructure assets Compare 5-3 5-7 Encumbrances Explain Same 5-8 Construction work in progress Explain New 5-9 Performance bonds and retained percentages Explain New 5-10 Service concession arrangements Explain Same Cases: 5-11 Modified approach for infrastructure assets Evaluate, write 5-1 5-12 Criteria for intangible asset recognition Evaluate, explain New 5-13 Recording and reporting damaged capital assets Evaluate, explain New 5-14 Service concession arrangements Evaluate, explain 5-4 Exercises/Problems: 5-15 Examine the CAFR Examine 5-1 revised  5-2 5-16 Various Multiple Choice Items 2, 3, 7, and 10 are new 5-17 General capital assets Journal entries 5-3 5-18 Capital asset disclosure schedule Financial statement 5-4 revised 5-19 Lease classification and accounting Calculate; JEs New 5-20 Asset impairment JEs; reporting 5-6 5-21 Capital projects fund JEs 5-7 5-22 Statement of revenues and expenditures FS; explain New 5-23 Multi-project construction fund JEs & FS 5-9 5-24 Capital project transactions JEs & FS 5-10  5-3 CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS AND CAPITAL PROJECTS Answers to Questions 5-1. General capital assets  are those assets acquired with the resources of governmental funds. They are reported as assets in the Governmental Activities column of the government-wide financial statements at historical cost. Those capital assets identified as depreciable are shown net of accumulated depreciation. The resources used by the governmental funds to acquire a general capital asset are reported as an expenditure of the acquiring governmental fund in the fund financial statements. Capital assets acquired  by proprietary and fiduciary funds are not considered general capital assets. They are accounted for by their respective funds and reported as assets within the fund financial statements. Capital assets acquired by proprietary funds are also reported in the government-wide statement of net position. (As discussed in Chapter 7, enterprise fund capital assets are reported in the Business-type Activities column, while internal service fund capital assets are included in the Governmental Activities column of the government-wide financial statements.) General Problem Information: Defining and reporting general capital assets  Learning Objective:  5-1 Topic:  Accounting for General Capital Assets Bloom’s Taxonomy:   Remember Accreditation Skills tag: AACSB: Communication,   AICPA: FN Reporting Level of Difficulty: Easy 5-2. Capital asset disclosures required by the GASB include descriptions of policies for capitalizing assets and for estimating the useful lives of depreciable assets. In addition, the disclosures should include: (1) beginning-of-year and end-of-year balances showing accumulated depreciation separate from historical cost, (2) capital acquisitions during the year, (3) sales or other dispositions during the year, (4) depreciation expense showing amounts charged to each function in the statement of activities, and (5) disclosures regarding collections of art or historical treasures. General Problem Information: Capital asset disclosures  Learning Objective:  5-5 Topic:  Required Disclosures about Capital Assets Bloom’s Taxonomy:   Remember Accreditation Skills tag: AACSB: Communication,   AICPA: FN Reporting Level of Difficulty: Easy  5-4 Ch. 5, Answers (Cont’d)   5-3. In general, the valuation principles used in governmental and for-profit accounting are very similar. Assets acquired should be valued at historical cost when possible, and the definition of historical cost is basically the same for both. However, governments are more likely to receive capital assets through donation or to have acquired assets in the  past where no record of cost was maintained. Thus alternate valuations, such as appraisal for donated capital assets, or estimation of infrastructure assets, must be used to value those assets. Finally, GASB standards prohibit capitalization of interest incurred during the construction of general capital assets; while interest is capitalized as part of self-constructed capital assets recorded by for-profit organizations. General Problem Information: Capital asset valuation  Learning Objective:  5-2 Topic:  Accounting for General Capital Assets Bloom’s Taxonomy:   Understand Accreditation Skills tag: AACSB: Knowledge Application,   AICPA: FN Reporting Level of Difficulty: Medium 5-4. If the lease meets one or more of the criteria prescribed in Codification Section L20, the lease must be reported as a capital lease. If the lease is deemed to be a capital lease, the governmental fund journal entry on the date of inception will include a debit to Expenditures and a credit to Other Financing Sources  —  Capital Lease Agreements. The  journal entry at the government-wide level will be the same as that used in business accounting  —  a debit to Equipment and a credit to Capital Lease Obligations Payable. General Problem Information: Capital lease accounting  Learning Objective:  5-2 Topic:  General Capital Assets Acquired under Capital Lease Agreements Bloom’s Taxonomy:   Remember Accreditation Skills tag: AACSB: Communication,   AICPA: FN Reporting Level of Difficulty: Easy 5-5.   Under both GASB and FASB standards intangible assets are defined as assets that lack  physical substance. Intangible assets held by a government might include easements, water, timber, or mineral rights, patents, trademarks, and computer software. The GASB considers intangible assets to be a type of general capital asset; therefore, intangibles are reported under the capital asset heading in the statement of net position. In contrast, under FASB standards intangible assets are reported under the heading intangibles, appearing after the property, plant and equipment heading in the balance sheet. General Problem Information: Intangible assets  Learning Objective:  5-1 Topic:  Intangible Assets Bloom’s Taxonomy:   Remember Accreditation Skills tag: AACSB: Communication,   AICPA: FN Reporting Level of Difficulty: Easy
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