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

The measurement focus for governmental funds is the flow of current financial resources and current claims against those resources.

Capital Projects Funds are a type of governmental funds.

Depreciation expense is reported in the operating statement of proprietary funds.

When the budget is recorded in the general ledger, the Encumbrances account is debited.

Interfund transfers are reported in the Statement of Revenues, Expenditures, and Changes in Fund Balance for governmental funds.

_____ Which statement is false concerning encumbrances accounting?

The two subcategories of interfund activities that are not reciprocal in nature are interfund _______________________ and interfund ___________________________.

Below is the trial balance of Puzzle City at 6/30/06, prior to adjusting and closing entries. The bookkeeper was not certain of the exact account to use in some cases and merely used an account that was most descriptive of the nature of the transaction. Required: a. Prepare a balance sheet and an operating statement at the fund-based reporting level. b. Prepare a "T" account analysis of the Unreserved Fund Balance account as it should have been posted for the year (inclusive of any year-end adjusting entries and the year-end closing entries).

_____ For governmental funds, what is the measurement focus at the fund-based reporting level?

_____ Which of the following accounts of a governmental unit is credited when the budget is recorded?

All fiduciary funds use the cash basis of accounting.

The three categories of fund types are ________________________________________ funds, ___________________________ funds, and _________________________________ funds.

_____ Which of the following accounts of a governmental unit is credited when taxpayers are billed for property taxes?

Under the modified accrual basis of accounting, revenues are recognized only if they are reasonably estimable and probable as to occurrence.

_____ The Estimated Revenues account of a governmental unit is credited when

_____ Which of the following is not a budgetary account?

Special Revenue Funds are a type of proprietary funds.

_____ Which organization currently has responsibility for prescribing governmental accounting standards?

Internal Service Funds are a type of governmental funds.

Encumbrances accounting is part of budgetary accounting.