Exam 5: Recognizing Expenditures in Governmental Funds

Shoshone County uses the consumption method to account for supplies.At the beginning of the year the city had no supplies on hand.During the year the city purchased $450,000 of supplies for use by activities accounted for in the general fund.The city used $300,000 of those supplies during the year.At fiscal year-end, the appropriate account balances on the general fund financial statements would be

Harris County transferred $300,000 from the general fund to the Motor Pool Internal Service Fund to pay for the use of automobiles during the first six months of FY 2015.The appropriate entry in the general fund to record this transfer of cash would be

The amount of sick leave liability that should appear on the general fund balance sheet at 6/30/15 is

Compensated absences, such as vacation pay and sick leave, should be accounted for on the accrual basis in governmental funds.

State University, a very large public university, has a policy of granting faculty members a one-year sabbatical leave after a period of seven years of continuous employment.The leave is to be used for further study, research, or service.During the fiscal year ended 6/30/15, the university paid $3 million to faculty members on sabbatical leave and estimated that faculty members currently not on sabbatical leave earned $3.5 million toward sabbatical leaves they are likely to take in the future.The amount of sabbatical expenditures for the year ended 6/30/15 should be

Which of the following funds would use the modified accrual basis of accounting in preparing its fund financial statements?

The City of Holbrook transferred $100,000 from the general fund to a debt service fund for payment of interest.The appropriate entry in the debt service fund to record this transfer would be