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

If 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 GAAP,then the budgetary comparison schedule or statements should

The Town of Ashland levied property taxes in the amount of $800,000.The town estimates that 1 percent will be uncollectible.The journal entry to record the tax levy will include

During January 2014 General Fund supplies ordered in the previous fiscal year and encumbered at an estimated amount of $2,000 were received at an actual cost of $2,200.The entry to record this transaction will require a debit to

Fines and forfeits are reported as charges for services on the government-wide statement of activities.

A payment made by the General Fund to a debt service fund would not be recorded in the governmental activities journal.

A payment made by a city-owned utility to the General Fund of the city in lieu of taxes is an example of an "internal exchange transaction."

Which of the following should not be reported on the balance sheet of the General Fund?

An interim schedule comparing the detail of appropriations,expenditures,and encumbrances should be prepared on an appropriate periodic basis to determine whether appropriations are being expended at the expected rate for the period and for the budget year to date.

If a government issues debt to finance capital acquisition,how should the related long-term debt be reported by the governmental fund that receives the proceeds of the debt?

The voters of the city passed an ordinance to increase their sales tax by ¼ percent.The proceeds of the sales tax are to be used for culture and recreation.In the governmental activities journal,how would the ¼ percent sales tax revenue be recorded?

Under the dual-track accounting approach used in the text,which of the following transactions or events would be recorded in the general journal for governmental activities at the government-wide level?

As a general rule,revenues,expenditures,and expenses should be reported as such only once in the funds of a government.

Cartier Village's capital expenditures during the year ended December 31 included: What amounts should have been recorded in the General Fund and enterprise fund for the increase in equipment during the year ended December 31,assuming the electric utility is considered an enterprise fund?

When a fire truck purchased from General Fund revenues is received,what account,if any,should have been debited in the General Fund?

The City of Grand Marais' fiscal year ends on June 30.Grand Marais uses encumbrance accounting.On May 6,a purchase order was approved and issued for supplies in the amount of $6,000.Grand Marais received these supplies on June 2,and the $6,000 invoice was approved for payment.What General Fund journal entry should Grand Marais make on May 6,to record the approved purchase order?

On July 1,the first day of its fiscal year,the Town of Eldon levied a $1,000,000 property tax which is payable in full on December 1 of the same year.On September 15,the town decided to borrow $200,000 in 90-day tax anticipation notes to cover operating expenditures until the tax revenues are collected.The journal entry on September 15 to record the issuance of tax anticipation notes will include

The City of Tipton received 100 acres of land located in the city limits as a gift from a local property owner for use as a city park.The debit for the entry to record this event in the General Fund should be to

Which of the following accounts would not be closed at the end of each fiscal year?

Under current GASB standards the revenue from property taxes should be recorded in the amounts collected during the current period.

Whenever a significant revenue source is restricted for a specific operating purpose,a special revenue fund should be established.