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

_____ The Board of Commissioners of the City of Rockton adopted its budget for the year ending 7/31/06, which indicated revenues of $1,000,000 and appropriations of $900,000. If the budget is formally integrated into the accounting records, what is the required journal entry?

At the fund-based reporting level, the general practice is to have the bottom line of the operating statement for the General Fund be the Total Fund Balance-not the Unreserved Fund Balance.

_____ Under the modified accrual basis of accounting, when are expenditures recognized in governmental funds (for the most part)?

Recording the annual budget in the general ledger for the General Fund does not affect the amount reported for the total Fund Balance at the end of the fiscal year.

Most governmental revenues arise from ____________________________ transactions.

Under the consumption method of accounting for supplies inventories, expenditures are charged as supplies are used.

The measurement focus for governmental funds-at the fund based reporting level-is the flow of total financial resources and current claims against those resources.

_____ The following balances are included in the subsidiary records of Burwood Village's Parks and Recreation Department at 3/31/06: Appropriations-supplies \7 ,500 Expenditures-supplies 4,500 Encumbrances-supply orders 750 How much does the department have available for additional purchases of supplies?

The entry to reestablish budgetary control over encumbrances outstanding at the end of the prior year as a result of a reappropriation in the new year requires a debit to the Encumbrances account.

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

A. Accounts that may be used in the following three problems: -Variety of transactions: Using the answer codes from "A," indicate the account or accounts that would be debited and credited for the following items pertaining to a city's General Fund:

_____ Which statement is correct concerning encumbrances?

_____ Which statement is correct for governmental units?

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

In governmental financial reporting, legal provisions do not have precedence over GAAP.

Any general ledger account that is debited or credited for which the offsetting credit or debit increases or decreases the Fund Balance account, respectively, is part of the measurement focus for governmental funds.

_____ Repairs that have been made for a governmental unit and for which a bill has been received should be recorded in the General Fund as a debit to

Governmental accounting standards are established by the Governmental Finance Officers Association.