Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

Which of the following statements is not a true statement about expenses that are directly related to a government function or program?

When equipment that is to be used by an activity accounted for by the General Fund of a government is received,it should be recorded in the General Fund as a(an)

An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.

Explain why governmental fund financial statements are insufficient for users seeking information about operational accountability.

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

All purchases of goods and services and all interfund transfers of the General Fund are recorded as Expenditures.

Aggregate financial information for all special revenue funds is reported in a single separate column of the governmental funds statement of revenues,expenditures,and changes in fund balances.

An interfund transfer of $30,000 was made from the General Fund to the debt service fund.(No previous entries were made regarding this transaction).When this event occurred,indicate whether each of the following accounts of the General Fund should be debited (D),credited (C),or is not affected (N). _____ 1.Interfund Loan to Debt Service Fund-Noncurrent. _____ 2.Due from Debt Service Fund. _____ 3.Cash. _____ 4.Other Financing Uses-Interfund Transfers Out. _____ 5.Encumbrances.

The expenditure classification "Public Safety" is an example of which of the following types of classifications?

Define the term revenue and distinguish between that term and other financing sources.

The City of Charleston recorded its FY 2014 property tax levy in the general fund.It was estimated that $6,000 would be uncollectible.When the tax levy is recorded,indicate whether each of the following accounts of the General Fund should be debited (D),credited (C),or is not affected (N). _____ 1.Taxes Receivable Current _____ 2.Bad Debt Expense _____ 3.Estimated Uncollectible Current Taxes _____ 4.Revenues _____ 5.Estimated revenues

Why is depreciation expense typically reported as a direct expense in the government-wide statement of activities?

Budgetary accounts used in the General Fund include Estimated Revenues,Estimated Other Financing Sources,Appropriations,Estimated Other Financing Uses,and Encumbrances.

When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order,the Encumbrance account is

Which of the following fund types is most likely to have a legally adopted annual budget?

Interfund transfers and debt issue proceeds received by a governmental fund should be recorded as other financing sources.

What benefits do financial statement users derive from the net (expense)revenue format used for the government-wide statement of activities?

Which of the following is true regarding other financing sources and other financing uses?

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

"Available appropriation" is calculated as the difference between appropriations and the sum of expenditures and encumbrances.