Exam 24: Governmental Accounting: Basic Principles and the General Fund

For fiduciary funds, the ________________________________ basis of accounting is used, and the __________________________________ measurement focus is used.

_____ Which of the following funds uses the accrual basis of accounting?

_____ The Board of Commissioners of Vane City adopted its budget for the year ending 7/31/06, comprising estimated revenues of $30,000,000 and appropriations of $29,000,000. What entry should be made for budgeted appropriations?

GAAFR is not an authoritative pronouncement concerning GAAP.

The Governmental Accounting Standards Board has equal status with the Financial Accounting Standards Board as to the authority of its pronouncements.

_____ A city's water utility provides water to the city. This activity is classified as as an interfund

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which the taxpayer's liability to the government arises.

Nonreciprocal interfund transfers are not reported in the Statement of Revenues, Expenditures, and Changes in Fund Balance for governmental funds.

The five types of "governmental" funds are ___________________________ Funds, __________________________ Funds, _______________________________ Funds, ____________________________ Funds, and ________________________ Funds.

Under the GASB codification, a Statement of Cash Flows is not required for governmental funds.

______ Albee Township's fiscal year ends on June 30. Albee uses encumbrances accounting. On 4/5/06, an approved $1,000 purchase order was issued for supplies. Albee received these supplies 5/2/06, and the $1,000 invoice was approved for payment. What journal entry or entries should Albee make on 5/2/06 upon receipt of the supplies and approval of the invoice?

General capital assets are accounted for in the General Fund.

_____ Which of the following funds is not classified as a governmental fund?

At the end of the fiscal year, encumbrances may or may not ______________________________________________.

Internal Service Funds are a type of enterprise funds.

_____ Kingsford City incurred $100,000 of salaries and wages for the month ended 3/31/06. How should this be recorded at that date?

The organization that currently establishes governmental accounting standards is the ________________________________________.

The four conceptual categories of governmental nonexchange transactions are ____________________________________, _______________________________________. ____________________________________, and ______________________________________.

When the budget is recorded in the general ledger, the Appropriations account is credited.

Interfund services provided and used are reported outside the operating statements of the affected funds.