ACC410 Week 6 Homework Answers Submission Sheet Fall 2021 Name: Homework Due Points Possible Exercise 9-1 4 Continuing 8 Problem 9-4 8 Exercise 10-1 4 Continuing 8 Problem 10-8 8 Points Received 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.) 1. Activities accounted for in both internal service funds and major enterprise funds _________________________________________________________________________________ 1 ACC410 Week 6 Homework Answers Submission Sheet Fall 2021 _________________________________________________________________________________ __________________________________________________________________________ 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? _________________ 2 ACC410 Week 6 Homework Answers Submission Sheet Fall 2021 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. 1. Journal entries – Internal Service Fund Debit Credit Debit Credit (a) (b) (c) (d) 2. Journal entries – General Fund (a) 3 ACC410 Week 6 Homework Answers Submission Sheet Fall 2021 (b) 3. 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:___________________________________________________ ___________________________________________________________________ 4. 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) 4 ACC410 Week 6 Homework Answers Submission Sheet Fall 2021 1. 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? __________________________________________________________ 2. Does the Town of Cary, NC maintain any fiduciary funds? Yes or No ___________________ For what purpose? __________________________________________________________ 3. 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? _____________________________________________________ 4. Does the Town of Cary, NC report pension expenses or expenditures? __________________ If so, in which fund or funds? ___________________________________________________ 5. Does the Town of Cary, NC report pension liabilities? _______________________________ If so, in which fund or funds? ___________________________________________________ 6. Does the CAFR indicate the actuarial value of plan assets and liabilities? ________________ Are the plans over or underfunded? _____________________________________________ 7. 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 __________________________________________ 8. Did the pension investments have a “good year”? Yes or No _________________________ 9. 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? _______________________________________________________ 10. 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. 5 ACC410 Week 6 Homework Answers Submission Sheet Fall 2021 1. Government/Proprietary fund: ___________________ or Not Applicable _______________ Fiduciary fund: ________________________________ or Not Applicable _______________ If Fiduciary fund, what type: _____________________ Justification: ________________________________________________________________ ___________________________________________________________________________ 2. Government/Proprietary fund: ___________________ or Not Applicable _______________ Fiduciary fund: ________________________________ or Not Applicable _______________ If Fiduciary fund, what type: _____________________ Justification: ________________________________________________________________ ___________________________________________________________________________ 3. Government/Proprietary fund: ___________________ or Not Applicable _______________ Fiduciary fund: ________________________________ or Not Applicable _______________ If Fiduciary fund, what type: _____________________ Justification: ________________________________________________________________ ___________________________________________________________________________ 4. Government/Proprietary fund: ___________________ or Not Applicable _______________ Fiduciary fund: ________________________________ or Not Applicable _______________ If Fiduciary fund, what type: _____________________ Justification: ________________________________________________________________ ___________________________________________________________________________ 5. Government/Proprietary fund: ___________________ or Not Applicable _______________ Fiduciary fund: ________________________________ or Not Applicable _______________ If Fiduciary fund, what type: _____________________ Justification: ________________________________________________________________ ___________________________________________________________________________ 6. Government/Proprietary fund: ___________________ or Not Applicable _______________ Fiduciary fund: ________________________________ or Not Applicable _______________ If Fiduciary fund, what type: _____________________ Justification: ________________________________________________________________ 6 ACC410 Week 6 Homework Answers Submission Sheet Fall 2021 ___________________________________________________________________________ 7. Government/Proprietary fund: ___________________ or Not Applicable _______________ Fiduciary fund: ________________________________ or Not Applicable _______________ If Fiduciary fund, what type: _____________________ Justification: ________________________________________________________________ ___________________________________________________________________________ 7 
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