Question 1

The GAAP hierarchy in state and local government accounting identifies sources of authoritative guidance for:

Accepted Answer

A)  Preparation of a legal budget 
B)  Preparation of financial statements 
C)  Providing information required by creditors of the governmental unit 
D)  Providing information required by supervisory levels of government 
A)  Preparation of a legal budget 
B)  Preparation of financial statements 
C)  Providing information required by creditors of the governmental unit 
D)  Providing information required by supervisory levels of government

Question 2

The following general fund budget was approved by Plumas County for the current year:
 $$\begin{array} { l r } 
\text { Budgeted revenues } & \$ 4,200,000 \
\text { Budgeted expenditures } & 3,900,000 \
\text { Budgeted other finanding sources } & 200,000 \
\text { Budgeted other finanding uses } & 600,000
\end{array}$$ Plumas County uses the GAAP budgetary basis for outstanding encumbrances.
Required
During the year, various transactions and events occurred that affected the general fund. For each of the following events, indicate in the space next to each of the names of the listed accounts whether the account should be debited, credited, or is not affected.
Closing entries are made at year-end.
-Due to other funds

Accepted Answer

A) debited 
B) credited 
C) not affected 
A) debited 
B) credited 
C) not affected

Question 3

What is the purpose of the fund balance classification system for the general fund?

Accepted Answer

A)  Report on a full accrual basis. 
B)  Improve evaluation of resource availability. 
C)  Better measurement of actual costs of providing services. 
D)  Reduce the tendency to borrow to reduce deficits. 
A)  Report on a full accrual basis. 
B)  Improve evaluation of resource availability. 
C)  Better measurement of actual costs of providing services. 
D)  Reduce the tendency to borrow to reduce deficits.

Question 4

Use the following information to answer bellow Questions
A county's general fund has $4,000,000 in purchase orders outstanding at the beginning of 2020. The orders are delivered in 2020 and the county pays the suppliers $4,000,000. Expenditures ordered, delivered and paid for in 2020 total $35,000,000. Near the end of 2020, encumbrances for $5,000,000 in purchase orders are recorded. Encumbrances are reported in fund balance-assigned.
-Using the GAAP budgetary basis, what amount does the county report for expenditures in 2020?

Accepted Answer

A)  $39,000,000 
B)  $40,000,000 
C)  $35,000,000 
D)  $44,000,000 
A)  $39,000,000 
B)  $40,000,000 
C)  $35,000,000 
D)  $44,000,000

Question 5

The following general fund budget was approved by Plumas County for the current year:
 $$\begin{array} { l r } 
\text { Budgeted revenues } & \$ 4,200,000 \
\text { Budgeted expenditures } & 3,900,000 \
\text { Budgeted other finanding sources } & 200,000 \
\text { Budgeted other finanding uses } & 600,000
\end{array}$$ Plumas County uses the GAAP budgetary basis for outstanding encumbrances.
Required
During the year, various transactions and events occurred that affected the general fund. For each of the following events, indicate in the space next to each of the names of the listed accounts whether the account should be debited, credited, or is not affected.
a. The adopted budget is recorded.
-Appropriations

Accepted Answer

A) debited 
B) credited 
C) not affected 
A) debited 
B) credited 
C) not affected

Question 6

In the financial statements of a county government, a component unit is a government unit:

Accepted Answer

A)  That is geographically located in the county. 
B)  For which the primary government is financially accountable. 
C)  That has the same board members as the primary government. 
D)  That issues its own bonds. 
A)  That is geographically located in the county. 
B)  For which the primary government is financially accountable. 
C)  That has the same board members as the primary government. 
D)  That issues its own bonds.

Question 7

The following general fund budget was approved by Plumas County for the current year:
 $$\begin{array} { l r } 
\text { Budgeted revenues } & \$ 4,200,000 \
\text { Budgeted expenditures } & 3,900,000 \
\text { Budgeted other finanding sources } & 200,000 \
\text { Budgeted other finanding uses } & 600,000
\end{array}$$ Plumas County uses the GAAP budgetary basis for outstanding encumbrances.
Required
During the year, various transactions and events occurred that affected the general fund. For each of the following events, indicate in the space next to each of the names of the listed accounts whether the account should be debited, credited, or is not affected.
The general fund moves money to the debt service fund for payment of principal and interest on general obligation debt.
-Due from debt service fund

Accepted Answer

A) debited 
B) credited 
C) not affected 
A) debited 
B) credited 
C) not affected

Question 8

At the beginning of 2020, a town reports the following balances, related to 2019 taxes:
 $$\begin{array} { l l } 
\text { Property taxes receivable } & \$ 300,000 \
\text { Allowance for uncollectible taxes } & \underline { ( 160,000 ) } \
\text { Property taxes receivable, net } & \underline { \underline { \$ 140,000 } }
\end{array}$$ Cash collected in 2020 from property owners for 2019 taxes was $155,000. The remaining uncollected taxes were written off.
Property tax bills were sent out at the beginning of 2020 in the amount of $4,000,000, of which $300,000 were estimated to be uncollectible. Cash collected from property owners for 2020 taxes was $3,650,000. Of the $350,000 uncollected at year-end, $100,000 in taxes are expected to be collected in the next 60 days, and $20,000 are expected to be collected more than 60 days from year-end. The remainder are considered uncollectible.
Required
Prepare the journal entries to record the above information in the general fund accounts.

Accepted Answer

To adjust allowance at end of year.
Allo

Question 9

Organizations that rate a government's bond issues are least interested in

Accepted Answer

A)  The government's future financing plans. 
B)  The impact of the government's current performance on future tax rates. 
C)  Material departures from GAAP in the government's financial statements. 
D)  Whether the government's financial statements are audited on a timely basis. 
A)  The government's future financing plans. 
B)  The impact of the government's current performance on future tax rates. 
C)  Material departures from GAAP in the government's financial statements. 
D)  Whether the government's financial statements are audited on a timely basis.

Question 10

The following fund types are used by Callaway County:
-General Fund (GF)
-Special Revenue Fund (SRF)
-Capital Projects Fund (CPF)
-Debt Service Fund (DSF)
-Permanent Fund (PF)
-Enterprise Fund (EF)
-Private Purpose Trust Fund (PPTF)
-Investment Trust Fund (ITF)
-Custodial Fund (CF)
Required
For each of the transactions bellow, indicate the county fund(s) affected. Be sure to include all funds that report the transaction. Use the abbreviations listed above.
-Last year the county received a federal grant to replace trees in public parks that were damaged by hurricanes. The county spends some of this money to plant new trees.

Accepted Answer

A) General Fund (GF) 
B) Special Revenue Fund (SRF) 
C) Capital Projects Fund (CPF) 
D) Debt Service Fund (DSF) 
E) Permanent Fund (PF)
F)Enterprise Fund (EF)
G)Private Purpose Trust Fund (PPTF)
H)Investment Trust Fund (ITF)
I)Custodial Fund (CF) 
A) General Fund (GF) 
B) Special Revenue Fund (SRF) 
C) Capital Projects Fund (CPF) 
D) Debt Service Fund (DSF) 
E) Permanent Fund (PF)
F)Enterprise Fund (EF)
G)Private Purpose Trust Fund (PPTF)
H)Investment Trust Fund (ITF)
I)Custodial Fund (CF)

Question 11

The following fund types are used by the State of Florida:
General Fund (GF) Internal Service Fund (ISF)
Special Revenue Fund (SRF) Private-Purpose Trust Fund (PPTF)
Capital Projects Fund (CPF) Pension and Other Employee Benefit Trust Fund (POEBTF)
Debt Service Fund (DSF) Investment Trust Fund (ITF)
Permanent Fund (PF) Custodial Fund (CF)
Enterprise Fund (EF) 
 Required
For each of the activities bellow, indicate the state fund type that reports the activity. Use the abbreviations listed above.
-Accounts for operations of the marine resources conservation program, financed by federal grants.

Accepted Answer

A) General Fund (GF) 
B) Special Revenue Fund (SRF) 
C) Capital Projects Fund (CPF) 
D) Debt Service Fund (DSF) 
E) Permanent Fund (PF)
F)Enterprise Fund (EF)
G)Internal Service Fund (ISF)
H)Private-Purpose Trust Fund (PPTF)
I)Pension and Other Employee Benefit Trust Fund (POEBTF)
J)Investment Trust Fund (ITF)
K)Custodial Fund (CF) 
A) General Fund (GF) 
B) Special Revenue Fund (SRF) 
C) Capital Projects Fund (CPF) 
D) Debt Service Fund (DSF) 
E) Permanent Fund (PF)
F)Enterprise Fund (EF)
G)Internal Service Fund (ISF)
H)Private-Purpose Trust Fund (PPTF)
I)Pension and Other Employee Benefit Trust Fund (POEBTF)
J)Investment Trust Fund (ITF)
K)Custodial Fund (CF)

Question 12

The December 31, 2020 trial balance of the Kings County general fund, before adjusting and closing entries, is as follows:
 $$\begin{array} { | l | r | r | } 
\hline &{ \text { Debits } } & { \text { Credits } } \
\hline \text { Cash } & \$ 50,000 & \
\hline \text { Taxes receivable } & 150,000 & \
\hline \text { Estimated revenues } & 562,000 & \
\hline \text { Estimated other financing so urces } & 110,000 & \
\hline \text { Expenditures } & 680,000 & \
\hline \text { Due from other funds } & 25,000 & \
\hline \text { Allowance for uncollectible taxes } & & \$ \quad 25,000 \
\hline \text { Acco unt s payable } & & 40,000 \
\hline \text { Due to other funds } & & 20,000 \
\hline \text { Property tax revenues } & & 550,000 \
\hline \text { Transfers from other funds } & & 100,000 \
\hline \text { Appropriations } & & 690,000 \
\hline \text { Fund balance-unassigned } & & \underline { 152,000 } \
\hline \text { Totals } & \underline { \underline { \$ 1,577,000 } }&\underline { \underline { \$ 1,577,000 } }  \
\hline
\end{array}$$ Required
a. What was balance in fund balance-unassigned on January 1, 2020, before the budget entry was made? 
b. Of the uncollected taxes at year-end, 75% are considered to be collectible within 60 days, and the remainder are uncollectible. Make the necessary adjusting entry.
c. Prepare the necessary closing entries for the year ended December 31, 2020.
d. Prepare the 2020 operating statement for the general fund, in good form.
e. Prepare the December 31, 2020 balance sheet for the general fund, in good form.

Accepted Answer

a. The budget entry reduced fund balance

Question 13

Collections of property taxes are reported in a county's:

Accepted Answer

A)  Special revenue fund. 
B)  General fund. 
C)  Investment trust fund. 
D)  Custodial fund. 
A)  Special revenue fund. 
B)  General fund. 
C)  Investment trust fund. 
D)  Custodial fund.

Question 14

Morris County's general fund has the following balances as of the beginning of 2020, pertaining to unpaid 2019 taxes:
 $\begin{array}{ll}
\text { Property taxes receivable } & \$ 5,000,000 \
\text { Allowance for uncollectible taxes } & (3,600,000)
\end{array}$ During 2020, the County collects $1,300,000 related to 2019 taxes and writes off the rest. Property tax bills for 2020 in the amount of $90,000,000 are sent out. The county estimates that 5% are uncollectible. The County collects $85,200,000 of 2020 taxes. Of the remaining $4,800,000 in uncollected taxes for 2020, the County estimates that $600,000 will be collected within 60 days after the end of the year, and the remainder are uncollectible.
Required
a. Prepare the journal entries to record the above events.
b. Calculate property tax revenue for 2020.

Accepted Answer

None

Question 15

County activities involving economic assistance, health and safety, education, and legislative services are categorized as:

Accepted Answer

A)  Governmental activities 
B)  Business activities 
C)  Fiduciary activities 
D)  Proprietary activities 
A)  Governmental activities 
B)  Business activities 
C)  Fiduciary activities 
D)  Proprietary activities

Question 16

A county general fund has $400 in estimated revenues, $5 in estimated other financing sources, $395 in appropriations, and $25 in estimated other financing uses. The beginning-of-year budget entry for the general fund will include a debit to

Accepted Answer

A)  Appropriations. 
B)  Fund balance-unassigned. 
C)  Estimated other financing uses. 
D)  Fund balance-restricted. 
A)  Appropriations. 
B)  Fund balance-unassigned. 
C)  Estimated other financing uses. 
D)  Fund balance-restricted.

Question 17

The following general fund budget was approved by Plumas County for the current year:
 $$\begin{array} { l r } 
\text { Budgeted revenues } & \$ 4,200,000 \
\text { Budgeted expenditures } & 3,900,000 \
\text { Budgeted other finanding sources } & 200,000 \
\text { Budgeted other finanding uses } & 600,000
\end{array}$$ Plumas County uses the GAAP budgetary basis for outstanding encumbrances.
Required
During the year, various transactions and events occurred that affected the general fund. For each of the following events, indicate in the space next to each of the names of the listed accounts whether the account should be debited, credited, or is not affected.
Closing entries are made at year-end.
-Appropriations

Accepted Answer

A) debited 
B) credited 
C) not affected 
A) debited 
B) credited 
C) not affected

Question 18

The following fund types are used by a county:
-General Fund (GF)
-Special Revenue Fund (SRF)
-Capital Projects Fund (CPF)
-Debt Service Fund (DSF)
-Permanent Fund (PF)
-Enterprise Fund (EF)
-Internal Service Fund (ISF)
-Custodial Fund (CF)
Required
For each of the transactions bellow, indicate the fund or funds affected. Be sure to include all funds that report the transaction. Use the abbreviations listed above.
-Extra money left over from a construction project is set aside for payment of interest on general obligation bonds used to finance the project.

Accepted Answer

A) General Fund (GF) 
B) Special Revenue Fund (SRF) 
C) Capital Projects Fund (CPF) 
D) Debt Service Fund (DSF) 
E) Permanent Fund (PF)
F)Enterprise Fund (EF)
G)Internal Service Fund (ISF)
H)Custodial Fund (CF) 
A) General Fund (GF) 
B) Special Revenue Fund (SRF) 
C) Capital Projects Fund (CPF) 
D) Debt Service Fund (DSF) 
E) Permanent Fund (PF)
F)Enterprise Fund (EF)
G)Internal Service Fund (ISF)
H)Custodial Fund (CF)

Question 19

The following fund types are used by Cumberland County:
General Fund (GF)
Special Revenue Fund (SRF)
Capital Projects Fund (CPF)
Debt Service Fund (DSF) 
Internal Service Fund (ISF)
Enterprise Fund (EF)
Pension Trust Fund (PTF)
Custodial Fund (CF) 
Required 
For each of the activities bellow, indicate the county fund type that reports the activity. Use the abbreviations listed above.
-Accounts for employee retirement contributions, earnings, investments and obligations.

Accepted Answer

A) General Fund (GF) 
B) Special Revenue Fund (SRF) 
C) Capital Projects Fund (CPF) 
D) Debt Service Fund (DSF) 
E) Internal Service Fund (ISF)
F)Enterprise Fund (EF)
G)Pension Trust Fund (PTF)
H)Custodial Fund (CF) 
A) General Fund (GF) 
B) Special Revenue Fund (SRF) 
C) Capital Projects Fund (CPF) 
D) Debt Service Fund (DSF) 
E) Internal Service Fund (ISF)
F)Enterprise Fund (EF)
G)Pension Trust Fund (PTF)
H)Custodial Fund (CF)

Question 20

A discretely presented component unit of a county is most likely to:

Accepted Answer

A)  Require primary government approval for major decisions. 
B)  Exist to provide services to the primary government. 
C)  Issue bonds for which the component unit is financially obligated. 
D)  Have the same governing body as the primary government. 
A)  Require primary government approval for major decisions. 
B)  Exist to provide services to the primary government. 
C)  Issue bonds for which the component unit is financially obligated. 
D)  Have the same governing body as the primary government.

The GAAP hierarchy in state and local government accounting identifies sources of authoritative guidance for:

What is the purpose of the fund balance classification system for the general fund?

In the financial statements of a county government, a component unit is a government unit:

Organizations that rate a government's bond issues are least interested in

Collections of property taxes are reported in a county's:

County activities involving economic assistance, health and safety, education, and legislative services are categorized as:

A county general fund has $400 in estimated revenues, $5 in estimated other financing sources, $395 in appropriations, and $25 in estimated other financing uses. The beginning-of-year budget entry for the general fund will include a debit to

A discretely presented component unit of a county is most likely to:

Intercorporate Investments: An Overview

Mergers and Acquisitions

Consolidated Financial Statements: Date of Acquisition

Consolidated Financial Statements Subsequent to Acquisition

Consolidated Financial Statements: Outside Interests

Consolidated Financial Statements: Intercompany Transactions

Consolidating Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging

Futures, Options and Interest Rate Swaps

State and Local Governments: Other Transactions

State and Local Governments: External Financial Reporting

Private Not-For-Profit Organizations

Partnership Accounting and Reporting

Bankruptcy and Reorganization

The Sec and Financial Reporting

Filters

Exam 10: State and Local Governments: Introduction and General Fund Transactions

The GAAP hierarchy in state and local government accounting identifies sources of authoritative guidance for:

What is the purpose of the fund balance classification system for the general fund?

In the financial statements of a county government, a component unit is a government unit:

Organizations that rate a government's bond issues are least interested in

Collections of property taxes are reported in a county's:

County activities involving economic assistance, health and safety, education, and legislative services are categorized as:

A county general fund has $400 in estimated revenues, $5 in estimated other financing sources, $395 in appropriations, and $25 in estimated other financing uses. The beginning-of-year budget entry for the general fund will include a debit to

A discretely presented component unit of a county is most likely to:

Intercorporate Investments: An Overview

Mergers and Acquisitions

Consolidated Financial Statements: Date of Acquisition

Consolidated Financial Statements Subsequent to Acquisition

Consolidated Financial Statements: Outside Interests

Consolidated Financial Statements: Intercompany Transactions

Consolidating Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging

Futures, Options and Interest Rate Swaps

State and Local Governments: Other Transactions

State and Local Governments: External Financial Reporting

Private Not-For-Profit Organizations

Partnership Accounting and Reporting

Bankruptcy and Reorganization

The Sec and Financial Reporting

Filters