Exam 4: Accounting for Governmental Operating Activities-Illustrative Transactions and Financial Statements

Property taxes due 75 days after the end of the 2014 fiscal year would be recognized in 2014 as revenues in the General Fund general journal.

The earnings on the assets of a permanent fund are to be used to support the city's library (special revenue fund).How would the earnings be recorded?

At the end of the 2014 fiscal year the General Fund had $500 in encumbrances that remained opened into fiscal year 2015.In 2015 the encumbered goods were received at an invoiced cost of $520.How much would be recorded as the 2015 expenditure?

The Revenues account of a government is debited when

The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of the city).The governmental activities journal entry to record the transaction will include

Which of the following financial statement(s)reports both current and noncurrent assets and liabilities?

The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of the city).The General Fund general journal entry to record the transaction will include

The General Fund received $200,000 in lieu of taxes from the city owned water utility,an enterprise fund.This is an example of a(an)

Permanent funds use the modified accrual basis of accounting.

Estimated uncollectible tax amounts are recorded in the General Fund general journal as a reduction in revenues and in the governmental activities journal as a bad debt expense.

Which of the following is properly reported as an other financing source by the General Fund?

When an enterprise fund pays the General Fund an amount in lieu of taxes,the account to be credited in the General Fund is

At the end of the fiscal year,the purchases method of recording inventory adjusts the Expenditures account to reflect the amount of inventory actually used during the period.

When a computer is ordered by a department of the government,the purchase order should be recorded in the General Fund as a debit to

Which of the following types of nonexchange transactions recognize revenue when all the eligibility requirements are met?

Generally,encumbrance accounting is not used in the accounting for payroll.

Which of the following transactions is classified as an exchange transaction rather than a nonexchange transaction?

Governments that are temporarily short of cash but that have levied taxes expected to be collectible during the fiscal year are generally able to borrow on short-term notes known as "tax anticipation notes payable."

Distinguish between interfund loans and interfund transactions that recognize a flow of financial resources in governmental fund operating statements.

An interfund transfer occurs when one fund of government pays another fund of the same government for services provided.