Can anyone help me answer the following multiple choice questions on governmental accounting:


. Which of the following is not an objective of financial reporting by state and local governments?
a. To assist financial report users in comparing actual financial results with the legally adopted budget.
b. To assist users in assessing financial condition and results of operations.
c. To assist users in assessing the adequacy of systems and controls.
d. None of the above; that is, all of the above are objectives of state and local government.



. The following information pertains to Grove City’s interfund receivables and payables at 6/30/07:
Due to special revenue fund from general fund $10,000
Due to agency fund from special revenue fund 4,000
In Grove’s special revenue fund balance sheet at 6/30/07, how should these interfund amounts be reported:
a. As an asset of $6,000.
b. As a liability of $6,000.
c. As an asset of $4,000 and a liability of $10,000.
d. As an asset of $10,000 and a liability of $4,000.


. Which of the following would increase the balance in net assets—invested in capital assets, net of related debt?
a. Acquisition of a building to be used by the police department.
b. Issuance of long-term debt to be used to acquire equipment for the police department.
c. A gift of land to the city restricted by the donor to be used as a park.
d. None of the above.


. Which of the following ratios would be most helpful in assessing the liquidity of a governmental entity?
a. Net tax-supported long-term debt/population.
b. Own source revenues/total revenues.
c. Debt service expenditures/total expenditures.
d. Unreserved fund balance/operating revenues.

. A measure of the adequacy of the amount of the government's total unrestricted net assets or deficit at the measurement date is
a. Unrestricted net assets/total revenues.
b. Business-type activities revenues/business-type activities expenses.
c. Total net assets (governmental activities and business-type activities) less total net assets at the beginning of the year.
d. Total revenues/total expenses.




Debt Issue
On July 15, 2007, the city of Higgins Lake issued tax-supported term bonds having a face value of $10,000,000 and maturing in 20 years. The bonds are dated July 15, 2007, and pay interest of 6 percent semiannually on January 15 and July 15 of each year. The bonds were sold at a price of 102 and were intended to finance construction of a new city jail. The premium on sale of the bonds was recorded directly in the debt service fund and was immediately invested for eventual retirement of the debt.

For the fiscal year ending June 30, 2007, the city council approved a budget for the newly established term bond debt service fund in the amount of $444,500, which includes $432,500 that will be transferred from the General Fund as follows: (1) $300,000 on January 14, 2008 for the January 15, 2008 interest payment due and (2) $132,500 on June 30, 2008 for investment in the debt service fund for retirement of principal, and $12,000 of estimated revenue for interest on investment of premium.

Required:

(a) In FY 2007 an issue of 7 percent serial bonds was sold in the amount of $6,000,000. The issue matures at the rate of $300,000 per year. The first payment was made in FY 2008. Aside from these two bond issues, the only other debt held by Higgins Lake at the end of the 2007 fiscal year was $500,000 still outstanding on an issue of a 3 percent serial bond that matures at the rate of $250,000 per year. The payment during fiscal year 2008 was made by the debt service fund. Prepare a schedule disclosing the changes in long-term liabilities for Higgins Lake for the year ended June 30, 2008.



Any help with any of the questions would be very much appreciated.

Thank you.