Question 1

When budgeted expenditures are enacted into law, they are referred to as

Accepted Answer

A) estimated expenditures. 
B) encumbrances. 
C) appropriations. 
D) expenditures. 
A) estimated expenditures. 
B) encumbrances. 
C) appropriations. 
D) expenditures.

Question 2

Define a fund as the term is applied in accounting for the activities of governmental units and other nonbusiness organizations.

Accepted Answer

A fund is a fiscal and accounting entity

Question 3

The expendable fund entity's measurement focus is on:

Accepted Answer

A) the flow of current financial resources. 
B) the flow of economic resources. 
C) the flow of revenue, expenses, and net income. 
D) none of the above. 
A) the flow of current financial resources. 
B) the flow of economic resources. 
C) the flow of revenue, expenses, and net income. 
D) none of the above.

Question 4

What characteristics distinguish nonbusiness organizations from profit-oriented enterprises?

Accepted Answer

The performance of services by nonbusine

Question 5

Which of the following requires the use of the encumbrance system?

Accepted Answer

A) Capital projects fund 
B) Debt service fund 
C) Internal service fund 
D) Enterprise fund 
A) Capital projects fund 
B) Debt service fund 
C) Internal service fund 
D) Enterprise fund

Question 6

Describe the principal financial statements used to report on the activities and status of expendable fund entities.

Accepted Answer

There are two principal financial statem

Question 7

The entry to record the receipt of office equipment previously encumbered includes a debit to

Accepted Answer

A) Office Equipment. 
B) Encumbrances. 
C) Reserve for Encumbrances. 
D) both Office Equipment and Reserve for Encumbrances. 
A) Office Equipment. 
B) Encumbrances. 
C) Reserve for Encumbrances. 
D) both Office Equipment and Reserve for Encumbrances.

Question 8

What are the major classifications of increases and decreases in expendable fund resources?

Accepted Answer

Major classifications of increases in ex

Question 9

The two basic statements prepared for expendable fund entities are a balance sheet and a(n)

Accepted Answer

A) income statement. 
B) statement of revenue. 
C) statement of expenditures and encumbrances. 
D) none of these. 
A) income statement. 
B) statement of revenue. 
C) statement of expenditures and encumbrances. 
D) none of these.

Question 10

The entry to close appropriations, expenditures, and encumbrances accounts includes a debit to

Accepted Answer

A) Appropriations. 
B) Expenditures. 
C) Encumbrances. 
D) both Appropriations and Encumbrances. 
A) Appropriations. 
B) Expenditures. 
C) Encumbrances. 
D) both Appropriations and Encumbrances.

Question 11

Explain and justify the difference between the treatment of estimated uncollectible taxes in fund accounting and the treatment of estimated bad debts in commercial accounting.

Accepted Answer

In accounting for commercial activities,

Question 12

Explain the purposes of encumbrance accounting.Might encumbrance accounting be used by commercial enterprises?

Accepted Answer

Since the amount of an appropriation can

Question 13

The Expenditures account of a governmental unit is debited when:

Accepted Answer

A) the budget is recorded. 
B) supplies are ordered. 
C) supplies encumbered are received. 
D) the supplies invoice is paid. 
A) the budget is recorded. 
B) supplies are ordered. 
C) supplies encumbered are received. 
D) the supplies invoice is paid.

Question 14

In accounting for expendable fund entities, revenue is ordinarily not recognized until:

Accepted Answer

A) it can be objectively measured and it is available to finance expenditures of the current period. 
B) a transaction has taken place and the earnings process is complete. 
C) it has been received in cash. 
D) none of the above. 
A) it can be objectively measured and it is available to finance expenditures of the current period. 
B) a transaction has taken place and the earnings process is complete. 
C) it has been received in cash. 
D) none of the above.

Question 15

Customers' meter deposits which cannot be spent for normal operating purposes would be classified as restricted cash in the balance sheet of which fund?

Accepted Answer

A) Internal Service 
B) Trust 
C) Agency 
D) Enterprise 
A) Internal Service 
B) Trust 
C) Agency 
D) Enterprise

Question 16

Distinguish between an expense and an expenditure.

Accepted Answer

An expense is associated with accounting

When budgeted expenditures are enacted into law, they are referred to as

Define a fund as the term is applied in accounting for the activities of governmental units and other nonbusiness organizations.

The expendable fund entity's measurement focus is on:

What characteristics distinguish nonbusiness organizations from profit-oriented enterprises?

Which of the following requires the use of the encumbrance system?

Describe the principal financial statements used to report on the activities and status of expendable fund entities.

The entry to record the receipt of office equipment previously encumbered includes a debit to

What are the major classifications of increases and decreases in expendable fund resources?

The two basic statements prepared for expendable fund entities are a balance sheet and a(n)

The entry to close appropriations, expenditures, and encumbrances accounts includes a debit to

Explain and justify the difference between the treatment of estimated uncollectible taxes in fund accounting and the treatment of estimated bad debts in commercial accounting.

Explain the purposes of encumbrance accounting.Might encumbrance accounting be used by commercial enterprises?

The Expenditures account of a governmental unit is debited when:

In accounting for expendable fund entities, revenue is ordinarily not recognized until:

Customers' meter deposits which cannot be spent for normal operating purposes would be classified as restricted cash in the balance sheet of which fund?

Distinguish between an expense and an expenditure.

Introduction to Business Combinations and the Conceptual Framework

Accounting for Business Combinations

Consolidated Financial Statementsdate of Acquisition

Consolidated Financial Statements After Acquisition

Allocation and Depreciation of Differences Between Implied and Book Value

Elimination of Unrealized Profit on Intercompany Sales of Inventory

Elimination of Unrealized Gains or Losses on Intercompany Sales of Property and Equipment

Changes in Ownership Interest

Intercompany Bond Holdings and Miscellaneous

Insolvency Liquidation and Reorganization

International Financial Reporting Standards

Accounting for Foreign Currency Transactions

The Translation of Financial Statements of Foreign Affiliates

Reporting for Segments and for Interim Financial Periods

Partnerships: Formation, Operation, and Ownership Changes

Partnership Liquidation

Introduction to Accounting for State and Local Governmental Units

Accounting for Nongovernment Nonbusiness Organizations:

Filters

Exam 17: Introduction to Fund Accounting

When budgeted expenditures are enacted into law, they are referred to as

Define a fund as the term is applied in accounting for the activities of governmental units and other nonbusiness organizations.

The expendable fund entity's measurement focus is on:

What characteristics distinguish nonbusiness organizations from profit-oriented enterprises?

Which of the following requires the use of the encumbrance system?

Describe the principal financial statements used to report on the activities and status of expendable fund entities.

The entry to record the receipt of office equipment previously encumbered includes a debit to

What are the major classifications of increases and decreases in expendable fund resources?

The two basic statements prepared for expendable fund entities are a balance sheet and a(n)

The entry to close appropriations, expenditures, and encumbrances accounts includes a debit to

Explain and justify the difference between the treatment of estimated uncollectible taxes in fund accounting and the treatment of estimated bad debts in commercial accounting.

Explain the purposes of encumbrance accounting.Might encumbrance accounting be used by commercial enterprises?

The Expenditures account of a governmental unit is debited when:

In accounting for expendable fund entities, revenue is ordinarily not recognized until:

Customers' meter deposits which cannot be spent for normal operating purposes would be classified as restricted cash in the balance sheet of which fund?

Distinguish between an expense and an expenditure.

Introduction to Business Combinations and the Conceptual Framework

Accounting for Business Combinations

Consolidated Financial Statementsdate of Acquisition

Consolidated Financial Statements After Acquisition

Allocation and Depreciation of Differences Between Implied and Book Value

Elimination of Unrealized Profit on Intercompany Sales of Inventory

Elimination of Unrealized Gains or Losses on Intercompany Sales of Property and Equipment

Changes in Ownership Interest

Intercompany Bond Holdings and Miscellaneous

Insolvency Liquidation and Reorganization

International Financial Reporting Standards

Accounting for Foreign Currency Transactions

The Translation of Financial Statements of Foreign Affiliates

Reporting for Segments and for Interim Financial Periods

Partnerships: Formation, Operation, and Ownership Changes

Partnership Liquidation

Introduction to Accounting for State and Local Governmental Units

Accounting for Nongovernment Nonbusiness Organizations:

Filters