Exam 17: Governmental Entities: Introduction and General Fund Accounting

The general fund of Richmond was billed $22,000 on August 15, 20X8, for using the services of one of its internal service funds (ISF). What accounts should be debited and credited, respectively, in the general fund on August 15, 20X8, to record this transaction?

What amount should be reported as expenditures for the current fiscal year when accounting for inventories of supplies under the purchase method and under the consumption method?

At the end of the fiscal year, uncollected property taxes in the general fund should be:

Which of the following describes how a governmental fund (e.g. general fund) accounts for a capital lease:

The general fund of Gillette levied property taxes of $400,000 on November 1, 20X8. However, the property taxes are not collectible until May and August of 20X9. Assume Gillette reports on the calendar year. On Gillette's general fund balance sheet at December 31, 20X8, the property taxes levied on November 1 should:

Which of the following funds should use the accrual basis of accounting?

Works of art and historical treasures purchased by the general fund should be reported as: I. an expenditure in the general fund. II. assets in the government-wide financial statements.

Which of the following funds are classified as proprietary funds?

Which of the financial statements described below is prepared by the general fund of a state or local government?

Note: This is a Kaplan CPA Review Question When the budget of a governmental unit, for which the estimated revenues exceed the appropriations, is adopted and recorded in the general ledger at the beginning of the year, the budgetary fund balance account is

The general fund of Wold Township ordered office furniture for the mayor's office on August 1, 20X8. The office furniture was estimated to cost $12,000. The office furniture was received on September 1, 20X8, with the actual cost being $11,800. Which of the following accounts decreased on September 1, 20X8?

GASB 31 "Accounting for Financial Reporting for Certain Investments and for External Reporting Investment Pools," establishes a general rule that government entities value investments in option contracts, open-ended mutual funds, and debt securities for balance sheet presentation at:

Which organization has the authority to establish generally accepted accounting principles for state and local government entities?

Briefly discuss the various types of governmental funds and proprietary funds.

Which of the following observations concerning interfund transfers is true?

Which accounts described below would have non-zero balances after the accounts are closed in the general fund of a state or local government? I. Estimated Revenues Control. II. Appropriations Control. III. Budgetary Fund Balance Unreserved. IV. Deferred Revenue. V. Due to Internal Service Fund. VI. Fund Balance-Reserved for Inventories.

All of the following funds have a financial resources measurement focus with the exception of which fund?

The general fund of the City of Atlanta received a check for $10,000 from an Atlanta resident on July 1, 20X8. Of the amount received, $4,800 represented full payment of property taxes for 20X8, and the remaining $5,200 represented an advance payment for property taxes of 20X9. On July 1, 20X8, the general fund should record the receipt by debiting Cash for $10,000 and by crediting

Under the modified accrual basis of accounting for the general fund, expenditures should be recognized in the period in which the related liability is: I. paid. II. incurred.

The City of Ames uses the consumption method to report its inventory of supplies on its general fund balance sheet. What account is debited in the general fund when Ames acquires supplies?