QuizQuestion 1 (4 points)SavedWhich of the following is not a purpose of government financial reporting:Question 1 options:a) Evaluate efficiency and effectivenessb) Compare actual results with the budgetc) Determine compliance with laws and regulationsd) Determine the overall profitability of the government entityQuestion 2 (4 points)SavedA current rate of exchange between two currencies is known as the:Question 2 options:a) Forward Rateb) Floating Ratec) Average Rated) Spot RateQuestion 3 (4 points)SavedAccounting standards relevant to private not-for-profit entities include all of the following except:Question 3 options:a) FASB 101b) FASB 116c) FASB 93d) FASB 117Question 4 (4 points)SavedA(n) _____ to either ____ or _____ some quantity of a particular foreign currency represents a foreign currency option.Question 4 options:a) Right, sell, buyb) Right, hold, retainc) Obligation, buy, selld) Obligation, hold, retainQuestion 5 (4 points)SavedA ____________ is a type of governmental fund that accounts for resources for which the governmental units acts of trustee or agent.Question 5 options:a) Permanent fundb) Special revenue fundc) Proprietary fundd) Fiduciary fundQuestion 6 (4 points)Saved___________ are the standards issued by the International Accounting Standards Board.Question 6 options:a) International Financial Reporting Standardsb) Global Accounting Standardsc) General Accepted Accounting Principlesd) IASBsQuestion 7 (4 points)SavedAgency funds are used for all of the following except:Question 7 options:a) Pass-through grantsb) Grants, entitlements, shared revenuec) Tax collections for itselfd) Payroll deductionsQuestion 8 (4 points)SavedConvergence initiatives of the FASB include all of the following except:Question 8 options:a) Joint projects with the IASBb) IASB member in residence at the FASBc) Rewriting all of GAAP to align with IFRSd) FASB monitoring IASB projectsQuestion 9 (4 points)Chapter ____ is the solution available through the bankruptcy code when a troubled corporation is liquidated.Question 9 options:a) 13b) 11c) 7d) 22Question 10 (4 points)SavedAll of the following are traits of disclosed information about a segment with the exception of:Question 10 options:a) Disclosure of the segment assetsb) The measure of profit or loss follows a management approach focusing on internal decision making rather than any strict definition of profit used by the enterprisec) Information presented for reportable segments must be reconciled to the respective consolidated amounts for the enterprise as a wholed) Information must be presented in the dominant foreign currency if the majority of the segment’s assets are located outside the U.S.Question 11 (4 points)All of the following are types of journal entries encountered in government accounting with the exception of:Question 11 options:a) Budgetary entriesb) Accrual entriesc) Closing entriesd) Operating entriesQuestion 12 (4 points)SavedA future rate of exchange between two currencies is known as the:Question 12 options:a) Spot Rateb) Forward Ratec) Average Rated) Floating RateQuestion 13 (4 points)A governmental fund balance that represents potential uses of resources planned for a future period is referred to as:Question 13 options:a) Unreserved Designatedb) Encumberedc) Reservedd) Unreserved UndesignatedQuestion 14 (4 points)This is the applicable reorganization solution available through the bankruptcy code when a corporation remains in business through a restructuring of its debt and/or equity.Question 14 options:a) Chapter 11b) Chapter 13c) Chapter 22d) Chapter 7Question 15 (4 points)SavedWhich of the following is not a factor influencing the development of accounting.Question 15 options:a) Geographic locationb) Standard Setting Processc) Social and cultural valuesd) Political and legal systemsQuestion 16 (4 points)Orange Co., a domestic entity, sold goods to a British company on 5/10 with the transaction denominated in Pounds. The sales price of the goods was £200,000, and the cost of the goods was $100,000. The receivable is payable in full on 6/10, and Orange Co. prepares their financials monthly. Relevant exchanges rates are 5/10 £1 = $1.25, 5/31 £1 = $1.30, and 6/10 £1 = $1.35. Based on this information, what was the amount booked to cost of goods sold by Company D on 5/10?Question 16 options:a) $100,000b) £ 100,000c) $80,000d) $125,000Question 17 (4 points)Company D, a domestic entity, sold goods to a British company on 5/10 with the transaction denominated in Pounds. The sales price of the goods was £300,000, and the cost of the goods was $100,000. The receivable is payable in full on 6/10, and Company D prepares their financials monthly. Relevant exchanges rates are 5/10 £1 = $1.10, 5/31 £1 = $1.15, and 6/10 £1 = $1.20. Based on this information, how much would accounts receivable need to be revalued by on 5/31?Question 17 options:a) $10,000 decreaseb) $15,000 decreasec) $15,000 increased) $0Question 18 (4 points)Company F is a foreign subsidiary of a domestic company and Company F’s functional currency is the Euro. On Company F’s financials at the end of the year 2018, they reported €50,000 in inventory. If the spot rate on 1/1/18 was €1 = $1.06, the spot rate on 12/31/18 was €1 $1.15, and the weighted average rate for the full year 2018 was €1 = $1.10, how much is the translated balance of inventory in U.S. $ at year-end?Question 18 options:a) $53,000b) $50,000c) $55,000d) $57,500Question 19 (4 points)Company F is a foreign subsidiary of a domestic company and Company F’s functional currency is the Euro. On Company F’s financials at the end of the year 2018, they reported €200,000 in cost of goods sold. If the spot rate on 1/1/18 was €1 = $1.12, the spot rate on 12/31/18 was €1 $1.02, and the weighted average rate for the full year 2018 was €1 = $1.18, how much is the translated balance of cost of goods sold in U.S. $ at year-end?Question 19 options:a) $236,000b) $224,000c) $204,000d) $200,000Question 20 (4 points)Company F is a foreign subsidiary of a domestic company and Company F’s functional currency is the Euro. The total U.S. $ Translated balances of total assets per the trial balance at year-end but prior to closing entries is $850,000, liabilities is $200,000, equity is $450,000, and net income adds up to $150,000. The amount to be entered into Accumulated Translation Adjustment will be:Question 20 options:a) $100,000 debitb) $50,000 creditc) $50,000 debitd) $100,000 creditQuestion 21 (4 points)Lydia, James, and Lola form a partnership where each partner will have an equal share to start. Lydia contributes $60,000 in cash, James contributes $60,000 in equipment, and Lola contributes $20,000 in cash and bring to the table expertise that the partners agree is worth $40,000, and choose to account for the value of this expertise using the goodwill method. Immediately after formation, Lola’s capital account would reflect a balance of:Question 21 options:a) $20,000 creditb) $60,000 creditc) $20,000 debitd) $45,000 creditQuestion 22 (4 points)SavedLydia, James, and Lola’s partnership calls for the following allocation of income: James and Lola are to receive lump sum salary payments of $50,000 each, Lydia and Lola are to receive interest of 5% of their ending capital balances, if there’s a profit James is to receive a bonus equal to 10% of the profit, and any remaining income is to be split between Lydia, James, and Lola 40%, 20%, and 40% respectively. Lydia, James, and Lola’s ending capital balances were $100,000, $50,000, and $150,000 respectively. If there was a partnership net profit of $500,000, how much was allocated to Lola in total?Question 22 options:a) $192,500b) $57,500c) $167,500d) $150,000Question 23 (4 points)SavedLydia, James, and Lola’s partnership calls for the following allocation of income: James and Lola are to receive lump sum salary payments of $20,000 each, Lydia and Lola are to receive interest of 5% of their ending capital balances, if there’s a profit James is to receive a bonus equal to 10% of the profit, and any remaining income is to be split between Lydia, James, and Lola 40%, 20%, and 40% respectively. Lydia, James, and Lola’s ending capital balances were $100,000, $50,000, and $150,000 respectively. If there was a partnership net loss of <$100,000>, how much was allocated to or James in total?Question 23 options:a) <$56,000>b) $20,000c) <$33,500>d) <$10,500>Question 24 (4 points)SavedLydia, James, and Lola are in a partnership together and each have capital balances of $250,000. A new partner, Shawn, pays James $200,000 directly for 100% of his interest in the new partnership, replacing him in the partnership. The journal entry on the books of the partnership to account for this transaction would be:Question 24 options:a) Debit Capital-James $200,000, Debit Cash $50,000; Credit Capital-Shawn $250,000b) Debit Capital-James $250,000; Credit Capital-Shawn $250,000c) Debit Cash $250,000; Credit Capital-Shawn $250,000d) No entry is made on the partnership’s books as the transaction was made directly between James and ShawnQuestion 25 (4 points)SavedLydia, James, Lola, and Shawn are in a partnership together and have a combined capital balance of $700,000. A new partner, Carol pays the partnership $300,000 directly for a 1/5 interest in the new partnership. The partnership chooses the goodwill method to existing partners to account for this transaction and will allocate any increase in implied value evenly amongst the existing partners. The journal entry on the books of the partnership to account for this transaction would be:Question 25 options:a) Debit Goodwill $400,000, Debit Cash $800,000; Credit each of the existing partner’s capital accounts $200,000 each, Credit Capital-Carol $400,000b) Debit Goodwill $300,000, Debit Cash $800,000; Credit each of the existing partner’s capital accounts $200,000 each, Credit Capital-Carol $300,000c) A Debit Cash $300,000, Debit Goodwill $400,000; Credit each of the existing partner’s capital accounts $100,000 each, Credit Capital-Carol $300,000d) Debit Cash $300,000, Debit Goodwill $500,000; Credit each of the existing partner’s capital accounts $125,000 each, Credit Capital-Carol $300,000Submit Quiz15 of 25 questions saved