Question 1

The accounting cycle for most governments is two to three years,consistent with the terms of elected officials.

Accepted Answer

A) True 
 B)False

Question 2

When budgets are integrated into a government's accounting system,estimated revenues are debited.

Accepted Answer

A) True 
 B)False

Question 3

Washington County received goods that had been approved for purchase but for which payment had not yet been made.Should the following accounts be increased? $\begin{array}{lcc}
&  \underline { \text {Expenditures  }} & \underline { \text {Encumbrances  }}\
a) & \text{No}& \text{No}\
b) & \text{Yes }& \text{Yes} \
c) & \text{Yes }& \text{ No} \
d) & \text{No}& \text{Yes} \
\end{array}$

Accepted Answer

The answer of Washington County received goods that had been...

Question 4

Encumbrances and expenditures both reduce total fund balances of state and local governments.

Accepted Answer

A) True 
 B)False

Question 5

A governmental entity has formally integrated the budget into its accounting records.At year-end the ledger account "Revenues from property taxes" has a debit balance.Which of the following is the best explanation for the debit balance?

Accepted Answer

A) The entity overestimated property tax revenue when preparing its budget. 
B) The entity underestimated property tax revenue when preparing its budget. 
C) The entity collected more in property taxes than it anticipated. 
D) There is no logical explanation;revenue accounts usually do not have debit balances. 
A) The entity overestimated property tax revenue when preparing its budget. 
B) The entity underestimated property tax revenue when preparing its budget. 
C) The entity collected more in property taxes than it anticipated. 
D) There is no logical explanation;revenue accounts usually do not have debit balances.

Question 6

In which of the following cases would the reserve for encumbrances account be decreased?

Accepted Answer

A) Budget revisions are made,decreasing appropriations 
B) Payment is made for goods received 
C) Goods,related to purchase orders,are received 
D) Purchase orders are issued 
A) Budget revisions are made,decreasing appropriations 
B) Payment is made for goods received 
C) Goods,related to purchase orders,are received 
D) Purchase orders are issued

Question 7

To close Encumbrances at the end of the year which of the following entries should be made?

Accepted Answer

A) Debit Encumbrances;credit Fund balance. 
B) Debit Reserve for encumbrances;credit Encumbrances. 
C) Debit Fund balance;credit Encumbrances. 
D) No closing entry needed. 
A) Debit Encumbrances;credit Fund balance. 
B) Debit Reserve for encumbrances;credit Encumbrances. 
C) Debit Fund balance;credit Encumbrances. 
D) No closing entry needed.

Question 8

Hill City uses encumbrance accounting to control expenditures.However,it charges the cost of outstanding purchase commitments to expenditures in the year they are received,not in the year they are ordered.If Hill City had $10,000 of purchase commitments outstanding at the end of Year 1 and received those goods during Year 2 at a cost of $9,800,what would be the impact on total fund balance for Year 2?

Accepted Answer

A) Total fund balance at the end of Year 2 would be $9,800 less than at the end of Year 1. 
B) Total fund balance at the end of Year 2 would be $200 less than at the end of Year 1. 
C) Total fund balance at the end of Year 2 would be $200 greater than at the end of Year 1. 
D) Total fund balance at the end of Year 2 would be same as it was at the end of Year 1. 
A) Total fund balance at the end of Year 2 would be $9,800 less than at the end of Year 1. 
B) Total fund balance at the end of Year 2 would be $200 less than at the end of Year 1. 
C) Total fund balance at the end of Year 2 would be $200 greater than at the end of Year 1. 
D) Total fund balance at the end of Year 2 would be same as it was at the end of Year 1.

Question 9

Capital budgets concentrate on long-lived assets.

Accepted Answer

A) True 
 B)False

The accounting cycle for most governments is two to three years,consistent with the terms of elected officials.

When budgets are integrated into a government's accounting system,estimated revenues are debited.

Washington County received goods that had been approved for purchase but for which payment had not yet been made.Should the following accounts be increased? a) No No b) Yes Yes c) Yes No d) No Yes

Encumbrances and expenditures both reduce total fund balances of state and local governments.

A governmental entity has formally integrated the budget into its accounting records.At year-end the ledger account "Revenues from property taxes" has a debit balance.Which of the following is the best explanation for the debit balance?

In which of the following cases would the reserve for encumbrances account be decreased?

To close Encumbrances at the end of the year which of the following entries should be made?

Capital budgets concentrate on long-lived assets.

The Government and Not-For-Profit Environment

Fund Accounting

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters

Exam 3: Issues of Budgeting and Control

The accounting cycle for most governments is two to three years,consistent with the terms of elected officials.

When budgets are integrated into a government's accounting system,estimated revenues are debited.

Washington County received goods that had been approved for purchase but for which payment had not yet been made.Should the following accounts be increased? a) No No b) Yes Yes c) Yes No d) No Yes

Encumbrances and expenditures both reduce total fund balances of state and local governments.

A governmental entity has formally integrated the budget into its accounting records.At year-end the ledger account "Revenues from property taxes" has a debit balance.Which of the following is the best explanation for the debit balance?

In which of the following cases would the reserve for encumbrances account be decreased?

To close Encumbrances at the end of the year which of the following entries should be made?

Capital budgets concentrate on long-lived assets.

The Government and Not-For-Profit Environment

Fund Accounting

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters