Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

Under the modified accrual basis of accounting used by the General Fund, financial resources are considered available if the revenue or other financing source is expected to be collected

According to GASB standards, which of the following is not classified as a budgetary account?

GASB standards require that all state and local governments present a statement of revenues, expenditures, and changes in fund balances-budget and actual for the General Fund and major special revenue funds for which annual budgets have been legally adopted.

The expenditure classification "City Attorney" is an example of which of the following types of classification?

The Appropriations account of a governmental fund is credited when:

For each revenue source listed indicate its correct classification recommended by GASB standards. A. Taxes B. Licenses and permits C. Intergovernmental revenue D. Charges for services E. Fines and forfeits F. Miscellaneous ________ 1. Capital grant received by a city from a state ________ 2. Property tax levied by city ________ 3. Library use fees ________ 4. Building permit

When the budget for the General Fund is recorded, the required journal entry will include:

Indicate whether the following revenues should be classified as program revenues or general revenues on the government-wide statement of activities. ________ 1. Unrestricted operating grants that can be used at the discretion of the city council. ________ 2. Capital grants restricted for highway construction. ________ 3. Charges for building inspections. ________ 4. A special assessment for snow removal. ________ 5. Fines and forfeits. ________ 6. Motor vehicle fuel taxes restricted for road repair. ________ 7. Unrestricted investment earnings.

The following information is provided about some of the Town of Truesdale's General Fund operating statement and budgetary accounts for the fiscal year ended June 30. \ 3,150,000 Estimated revenues 3,190,000 Revenues 3,185,000 Appropriations 3,175,000 Expenditures 400,000 Estimated other financing sources 20,000 Encumbrances 20,000 Encumbrances outstanding (calculate) Budgetary fund balance The Town of Truesdale will honor all of its outstanding encumbrances in the next fiscal period. Prepare the journal entry(ies) to close budgetary accounts required to be closed at the fiscal year end using the information provided. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

How does the use of encumbrance procedures improve budgetary control over expenditures?

How should depreciation expense be reported in the government-wide statement of activities?