This question tests GASB Statement No. 33's eligibility requirements for government-mandated and voluntary nonexchange transactions, specifically expenditure-driven (reimbursement) grants. For expenditure-driven grants, revenue recognition occurs when all eligibility requirements are met, including incurring allowable costs. Choice B correctly requires reporting the unspent $80,000 as a liability (unearned revenue) because eligibility requirements have not been met through incurring allowable expenditures. Choice A incorrectly recognizes revenue before eligibility requirements are satisfied. Choice C incorrectly uses deferred inflow classification, which relates to timing/availability rather than eligibility. Choice D incorrectly shows the amount in fund balance when a liability exists for potential repayment. The key principle for reimbursement grants is that revenue recognition requires meeting all eligibility requirements, with unspent advances reported as liabilities until earned through allowable expenditures.

This question tests GASB Statement No. 34's treatment of interfund loans, which are amounts provided between funds with a requirement for repayment. The $200,000 loan from the General Fund to the Special Revenue Fund that will be repaid within the following fiscal year should be reported using interfund receivables and payables. Choice C correctly reports this as due from other funds (asset) in the General Fund and due to other funds (liability) in the Special Revenue Fund. Choice A incorrectly treats the loan as a transfer, which would not require repayment. Choice B incorrectly uses expenditure/revenue classification reserved for interfund services. Choice D incorrectly classifies these as long-term items when repayment is expected by March 31 of the following year, making them current. The decision framework is that interfund loans requiring repayment use due to/from accounts for current items (within one year) and advances to/from for noncurrent items.

This question tests GASB Statement No. 14 as amended by GASB Statement No. 61 regarding the financial reporting entity and component units. The parking authority meets the criteria for inclusion as a component unit because the municipality appoints a voting majority of the board and can impose its will, creating financial accountability. Choice B correctly requires including the parking authority as a component unit, typically using discrete presentation unless blending criteria are met. Choice A incorrectly excludes the authority based on legal separation alone. Choice C incorrectly suggests inclusion in the General Fund, which would only occur if blending criteria were met. Choice D incorrectly classifies this as fiduciary activity when the authority provides services to the municipality. The framework for component unit determination requires both board appointment and either the ability to impose will or financial benefit/burden relationship, with presentation method depending on whether blending criteria are satisfied.

This question tests GASB Statement No. 87's requirements for lease accounting in government-wide financial statements, which use the economic resources measurement focus and full accrual accounting. Under GASB 87, lessees must recognize an intangible right-to-use lease asset and a corresponding lease liability measured at the present value of expected lease payments at lease commencement. Choice B correctly requires recognition of both the intangible right-to-use asset and lease liability at present value. Choice A incorrectly applies pre-GASB 87 operating lease treatment. Choice C incorrectly uses undiscounted amounts and misclassifies the asset as a capital asset rather than an intangible. Choice D incorrectly creates a deferred outflow without recognizing the liability, violating GASB 87's symmetrical approach. The key principle under GASB 87 is that leases create both an asset (the right to use) and a liability (the obligation to make payments), both measured at present value.

This question tests GASB Statement No. 34's requirements for budgetary comparison information as required supplementary information (RSI) for the General Fund and major special revenue funds with legally adopted budgets. The county must present both the original budget and the final amended budget (including the $300,000 increase) compared to actual amounts in the budgetary comparison schedule. Choice C correctly requires presentation of both original and final budget columns compared to actual amounts as RSI. Choice A incorrectly states that amended budgets cannot be reported externally. Choice B incorrectly suggests disclosing the original budget elsewhere rather than presenting it in columns. Choice D incorrectly places the budgetary comparison in the government-wide statements, which use the economic resources measurement focus rather than the budgetary basis. The decision rule is that budgetary comparisons for the General Fund must show original budget, final budget, and actual amounts on the budgetary basis of accounting.

This question tests revenue recognition for property taxes in governmental funds under GASB Statements No. 33 and No. 34, specifically the availability criterion. Property taxes must be both measurable and available to be recognized as revenue in governmental funds, with availability typically defined as collectible within 60 days after year-end per the county's policy. Choice B correctly recognizes revenue of $1,380,000 for the available portion and reports the $120,000 expected to be collected after 60 days as a deferred inflow of resources—unavailable revenue. Choice A incorrectly ignores the availability criterion. Choice C incorrectly classifies unavailable revenue as a deferred outflow rather than inflow. Choice D incorrectly uses an allowance approach without considering the timing of collection. The framework for property tax revenue recognition requires both the measurable and available criteria, with amounts not meeting availability reported as deferred inflows.

This question tests GASB Statement No. 34's requirement that governmental funds use the current financial resources measurement focus and modified accrual basis of accounting. The Capital Projects Fund should report bond proceeds of $8,000,000 as other financing sources (not revenues) and construction costs of $7,600,000 as expenditures—capital outlay, with the unpaid $400,000 shown as accounts payable. Choice B correctly applies these principles by reporting other financing sources—bond proceeds and expenditures—capital outlay, plus the fund liability for unpaid invoices. Choice A incorrectly attempts to report capital assets and long-term liabilities in the fund statements, which violates the current financial resources focus. Choice C incorrectly classifies bond proceeds as revenues and construction costs as expenses. Choice D incorrectly treats bond proceeds as deferred inflows and misclassifies construction costs as intangible assets. The key framework is that governmental funds report sources and uses of current financial resources, not capital assets or long-term liabilities.

This question tests GASB Statement No. 54's fund balance classifications for governmental funds, specifically the restricted category. Fund balance is classified as restricted when constraints are imposed by external parties (creditors, grantors, contributors, or laws/regulations of other governments) or by constitutional provisions or enabling legislation. Choice C correctly classifies the $2,400,000 as restricted fund balance because the constraints come from external parties—voters who approved the bonds and bond covenants requiring use for the library project. Choice A incorrectly uses nonspendable, which applies to resources not in spendable form. Choice B incorrectly uses committed, which requires formal action by the government's highest decision-making authority. Choice D incorrectly uses assigned, which involves internal constraints that can be removed. The hierarchy for fund balance classification prioritizes external constraints (restricted) over internal constraints (committed, assigned).

This question tests the modified accrual basis of accounting for governmental funds under GASB Statement No. 34, specifically the recognition of expenditures and liabilities. In governmental funds, expenditures are recognized when the fund liability is incurred if it will be paid from current financial resources, typically defined as payment within 60 days after year-end. Choice B correctly recognizes expenditures of $900,000 for all costs incurred and accounts payable of $80,000 for the unpaid portion expected to be paid within 60 days. Choice A incorrectly applies cash basis accounting. Choice C incorrectly uses expense terminology and long-term liability classification inappropriate for governmental funds. Choice D incorrectly creates a deferred outflow for what should be a current liability. The key principle is that governmental funds recognize expenditures when incurred if payment will be made from current financial resources, with the 60-day rule typically defining "current."

This question tests GASB Statement No. 34's classification of interfund activity, specifically interfund transfers between governmental funds. The $500,000 transfer from the General Fund to the Debt Service Fund represents a routine, recurring transfer to subsidize another fund's activities and should be reported as an interfund transfer. Choice B correctly classifies this as other financing use—transfers out in the General Fund and other financing source—transfers in in the Debt Service Fund. Choice A incorrectly treats the transfer as an expenditure and revenue, which would only apply to interfund services provided and used. Choice C incorrectly uses the due to/from accounts, which are for short-term interfund loans, not transfers. Choice D incorrectly suggests eliminating transfers in fund statements, when they should only be eliminated in government-wide statements. The key principle is that interfund transfers represent flows of financial resources between funds without repayment and are reported as other financing sources/uses.