Exam 3: Issues of Budgeting and Control

To close Reserve for encumbrances at the end of the year which of the following entries should be made?

A governmental entity has formally integrated the budget into its accounting records.At the end of the third quarter the ledger account "Expenditures--salaries" has a $100,000 debit balance.Which of the following is a true statement?

Which branch of local city and county)government most commonly prepares the budget?

The City of Lakeview adopts its budget on a basis of accounting that permits outstanding purchase commitments to be charged against the budget in the year that the goods are ordered instead of in the year they are received.During the year the city ordered and received $4,000 of supplies of which $3,000 had been paid and $1,000 was unpaid)and had $500 of outstanding purchase commitments for supplies at year-end.In the budget-to-actual comparison,the expenditures for supplies would be:

Which of the following is the best reason for preparing budgets for government entities on the cash basis?

Which of the following is the primary reason why governments formally integrate their legally adopted budget into their accounting systems?

During the previous year,Bane County closed its Encumbrances account.At the end of the previous year there was $5,000 of outstanding purchase commitments.To restore these commitments to the accounts,which of the following entries would be required?

When Spruce City receives goods at a cost of $9,700 that were encumbered in the prior year for $10,000,which of the following entries are required assume that encumbrances lapse at year end)?

State and local governments must prepare their GAAP budgetary comparisons on the modified accrual basis of accounting.

Expenditures should be budgeted by "character." An example of a character classification would be

A governmental entity has formally integrated the budget into its accounting records and uses encumbrance accounting.During the year the government ordered but had not yet received a new police car.What effect will this event have on the unencumbered balance in the account "Expenditures-capital outlay,police department"?

Why would a government be more likely than a not-for-profit organization to integrate its budget into its accounting system?

For which of the following funds would flexible budgeting be most valuable?

Periodic allocations of funds to departments or agencies are generally called

Reserve for encumbrances accounts should be closed at year-end.

The City of Denton uses encumbrance accounting to control expenditures.It charges the cost of outstanding purchase commitments to expenditures in the year they are received,not in the year they are ordered.If the city had $11,000 of purchase commitments outstanding at the end of Year 1 and received those goods during Year 2 at a cost of $11,700,what would be the impact on total fund balance for Year 2?

A city received supplies that had been previously encumbered.The supplies were encumbered for $5,000 and had an actual cost of $4,900.To recognize this event the county should make which of the following entries?

Per GASB standards,a budget-to-actual comparison must include columns for the actual results and

GASB requires that government entities present their budget-to-actual comparison data on which of the following bases of accounting?

Capital budgets focus on plans for the acquisition and construction of fixed assets.