Question 1

The expenditure classification "Current Expenditures" is an example of which of the following types of classifications?

Accepted Answer

A)  Activity. 
B)  Character. 
C)  Function. 
D)  Object. 
A)  Activity. 
B)  Character. 
C)  Function. 
D)  Object.

Question 2

The Fort Worth city council approved and adopted its fiscal year budget. The budget for the General Fund contained the following amounts:
   
When the General Fund budget for the fiscal year is recorded, indicate whether each of the following accounts should be debited (D), credited (C), or is not affected (N).
________ 1. Estimated revenues
________ 2. Budgetary Fund balance
________ 3. Appropriations
________ 4. Estimated other financing uses
________ 5. Expenditures

Accepted Answer

1. D
 2. C

Question 3

If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP):

Accepted Answer

A)  The actual amounts in the budgetary comparison schedule should be reported using the government's budgetary basis. 
B)  The actual amounts in the budgetary comparison schedule should be reported on the GAAP basis. 
C)  Both the budgeted and actual amounts in the budgetary comparison schedule should be reported on the GAAP basis; a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body. 
D)  Only a budgetary comparison schedule prepared for the appropriate state oversight body is required. 
A)  The actual amounts in the budgetary comparison schedule should be reported using the government's budgetary basis. 
B)  The actual amounts in the budgetary comparison schedule should be reported on the GAAP basis. 
C)  Both the budgeted and actual amounts in the budgetary comparison schedule should be reported on the GAAP basis; a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body. 
D)  Only a budgetary comparison schedule prepared for the appropriate state oversight body is required.

Question 4

Encumbrance accounting is required in the accounting for payroll of governmental funds.

Accepted Answer

A) True 
 B)False

Question 5

When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to:

Accepted Answer

A)  Encumbrances. 
B)  Equipment. 
C)  Expenditures. 
D)  Appropriations. 
A)  Encumbrances. 
B)  Equipment. 
C)  Expenditures. 
D)  Appropriations.

Question 6

When equipment that is to be used by the General Fund is received, how should it be recorded?

Accepted Answer

A)  Capital Asset. 
B)  Appropriation. 
C)  Encumbrances. 
D)  Expenditure. 
A)  Capital Asset. 
B)  Appropriation. 
C)  Encumbrances. 
D)  Expenditure.

Question 7

Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level?

Accepted Answer

A)  General program revenues. 
B)  Charges for services. 
C)  Operating grants and contributions. 
D)  Capital grants and contributions. 
A)  General program revenues. 
B)  Charges for services. 
C)  Operating grants and contributions. 
D)  Capital grants and contributions.

Question 8

When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is:

Accepted Answer

A)  Credited to Budgetary Fund Balance. 
B)  Debited to Budgetary Fund Balance. 
C)  Debited to Encumbrances Outstanding. 
D)  Credited to Encumbrances Outstanding. 
A)  Credited to Budgetary Fund Balance. 
B)  Debited to Budgetary Fund Balance. 
C)  Debited to Encumbrances Outstanding. 
D)  Credited to Encumbrances Outstanding.

Question 9

Contributions to permanent funds are shown on a separate line below the general revenues on the government-wide statement of activities.

Accepted Answer

A) True 
 B)False

Question 10

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?             
A-           
B-              & 
C-             
D-

Accepted Answer

A)  Choice A. 
B)  Choice B. 
C)  Choice C. 
D)  Choice D. 
A)  Choice A. 
B)  Choice B. 
C)  Choice C. 
D)  Choice D.

Question 11

Extraordinary items and special items are reported on the government-wide statement of activities.

Accepted Answer

A)  With normal recurring general revenues. 
B)  As separate line items in the Function/Programs section of the statement of activities. 
C)  As separate line items below General Revenues in the statement of activities. 
D)  As separate line items above General Revenues. 
A)  With normal recurring general revenues. 
B)  As separate line items in the Function/Programs section of the statement of activities. 
C)  As separate line items below General Revenues in the statement of activities. 
D)  As separate line items above General Revenues.

Question 12

Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?

Accepted Answer

A)  Enterprise fund. 
B)  Special revenue fund. 
C)  Investment trust fund. 
D)  Pension trust fund. 
A)  Enterprise fund. 
B)  Special revenue fund. 
C)  Investment trust fund. 
D)  Pension trust fund.

Question 13

One characteristic that distinguishes other financing sources from revenues is that other financing sources:

Accepted Answer

A)  Arise from debt issuances or interfund transfers in. 
B)  Increase fund balances when they are closed at year-end. 
C)  Provide financial resources for the recipient fund. 
D)  Have a normal credit balance. 
A)  Arise from debt issuances or interfund transfers in. 
B)  Increase fund balances when they are closed at year-end. 
C)  Provide financial resources for the recipient fund. 
D)  Have a normal credit balance.

Question 14

The Encumbrances account is properly termed a

Accepted Answer

A)  Long-term liability. 
B)  Reservation of unassigned fund balance. 
C)  Budgetary account. 
D)  Current liability if paid within a year; otherwise, long-term debt. 
A)  Long-term liability. 
B)  Reservation of unassigned fund balance. 
C)  Budgetary account. 
D)  Current liability if paid within a year; otherwise, long-term debt.

Question 15

Which of the following would not appear on a governmental fund balance sheet?

Accepted Answer

A)  Accounts receivable. 
B)  Inventory. 
C)  Vouchers payable. 
D)  Bonds payable. 
A)  Accounts receivable. 
B)  Inventory. 
C)  Vouchers payable. 
D)  Bonds payable.

Question 16

Explain the difference between an expenditure and an expense.

Accepted Answer

An expense represents the use, or expira

Question 17

The fund classification system used by public schools follows the GASB standards.

Accepted Answer

A) True 
 B)False

Question 18

The process by which a legal valuation is placed on taxable property is called:

Accepted Answer

A)  An appropriation. 
B)  A property tax levy. 
C)  Property assessment. 
D)  Ad valorem determination. 
A)  An appropriation. 
B)  A property tax levy. 
C)  Property assessment. 
D)  Ad valorem determination.

Question 19

Which of the following would always be classified as a general revenue?

Accepted Answer

A)  Grant proceeds. 
B)  Special assessment charges for snow removal. 
C)  Library fines. 
D)  Fuel taxes earmarked for maintenance of roads and bridges. 
A)  Grant proceeds. 
B)  Special assessment charges for snow removal. 
C)  Library fines. 
D)  Fuel taxes earmarked for maintenance of roads and bridges.

Question 20

The account "Interfund Transfers In" would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a(an):

Accepted Answer

A)  Revenue. 
B)  Other financing use. 
C)  Other financing source. 
D)  Current liability. 
A)  Revenue. 
B)  Other financing use. 
C)  Other financing source. 
D)  Current liability.

The expenditure classification "Current Expenditures" is an example of which of the following types of classifications?

If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP):

Encumbrance accounting is required in the accounting for payroll of governmental funds.

When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to:

When equipment that is to be used by the General Fund is received, how should it be recorded?

Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level?

When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is:

Contributions to permanent funds are shown on a separate line below the general revenues on the government-wide statement of activities.

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available? A- B- C- D-

Extraordinary items and special items are reported on the government-wide statement of activities.

Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?

One characteristic that distinguishes other financing sources from revenues is that other financing sources:

The Encumbrances account is properly termed a

Which of the following would not appear on a governmental fund balance sheet?

Explain the difference between an expenditure and an expense.

The fund classification system used by public schools follows the GASB standards.

The process by which a legal valuation is placed on taxable property is called:

Which of the following would always be classified as a general revenue?

The account "Interfund Transfers In" would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a(an):

Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-type Activities of State and Local Governments

Accounting for Fiduciary Activities—Custodial and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Government Financial Performance

Auditing of Government and Not-for-Profit Organizations

Budgeting and Performance Measurement

Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues

Accounting for Not-for-Profit Organizations

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

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Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

The expenditure classification "Current Expenditures" is an example of which of the following types of classifications?

If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP):

Encumbrance accounting is required in the accounting for payroll of governmental funds.

When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to:

When equipment that is to be used by the General Fund is received, how should it be recorded?

Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level?

When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is:

Contributions to permanent funds are shown on a separate line below the general revenues on the government-wide statement of activities.

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available? A- B- C- D-

Extraordinary items and special items are reported on the government-wide statement of activities.

Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?

One characteristic that distinguishes other financing sources from revenues is that other financing sources:

The Encumbrances account is properly termed a

Which of the following would not appear on a governmental fund balance sheet?

Explain the difference between an expenditure and an expense.

The fund classification system used by public schools follows the GASB standards.

The process by which a legal valuation is placed on taxable property is called:

Which of the following would always be classified as a general revenue?

The account "Interfund Transfers In" would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a(an):

Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-type Activities of State and Local Governments

Accounting for Fiduciary Activities—Custodial and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Government Financial Performance

Auditing of Government and Not-for-Profit Organizations

Budgeting and Performance Measurement

Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues

Accounting for Not-for-Profit Organizations

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters