Question 1

Extraordinary items and special items are reported

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 2

All decreases in fund financial resources,other than for repayment of fund liabilities,are termed "expenditures."

Accepted Answer

A) True 
 B)False

Question 3

The County Commission of Benton County adopted its General Fund budget for the year ending June 30,comprising estimated revenues of $3,200,000 and appropriations of $2,900,000.Benton County utilizes the budgetary accounts required by GASB standards.The journal entry to record budgeted appropriations will include

Accepted Answer

A)  A credit to Appropriations,$2,900,000. 
B)  A credit to Encumbrances,$2,900,000. 
C)  A debit to Estimated Expenditures,$2,900,000. 
D)  A credit to Budgetary Fund Balance,$2,900,000. 
A)  A credit to Appropriations,$2,900,000. 
B)  A credit to Encumbrances,$2,900,000. 
C)  A debit to Estimated Expenditures,$2,900,000. 
D)  A credit to Budgetary Fund Balance,$2,900,000.

Question 4

Which of the following best describes the recommended format for the government-wide statement of activities?

Accepted Answer

A)  Program revenues minus expenses minus other revenues and expenses equals change in net position. 
B)  Program revenues plus general revenues minus expenses equals change in net position. 
C)  Program revenues minus expenses plus general revenues equals change in net position. 
D)  Expenses minus program revenues plus general revenues equals change in net position. 
A)  Program revenues minus expenses minus other revenues and expenses equals change in net position. 
B)  Program revenues plus general revenues minus expenses equals change in net position. 
C)  Program revenues minus expenses plus general revenues equals change in net position. 
D)  Expenses minus program revenues plus general revenues equals change in net position.

Question 5

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

Accepted Answer

A)  A credit to Estimated Revenues. 
B)  A debit to Encumbrances. 
C)  A credit to Appropriations. 
D)  A credit to Fund Balance. 
A)  A credit to Estimated Revenues. 
B)  A debit to Encumbrances. 
C)  A credit to Appropriations. 
D)  A credit to Fund Balance.

Question 6

Depreciation expense for assets that essentially benefit all functions,such as the city hall,may be reported as a separate line item or on the same line as the General Government or similar function.

Accepted Answer

A) True 
 B)False

Question 7

The journal entry to record budgeted revenues will include

Accepted Answer

A)  A debit to Estimated Revenues. 
B)  A credit to Estimated Revenues. 
C)  A debit to Revenues Receivable. 
D)  Only a memorandum entry is necessary. 
A)  A debit to Estimated Revenues. 
B)  A credit to Estimated Revenues. 
C)  A debit to Revenues Receivable. 
D)  Only a memorandum entry is necessary.

Question 8

Financial information for governmental funds must be reported on the economic resources measurement focus.

Accepted Answer

A) True 
 B)False

Question 9

All encumbrances must be closed at year-end.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following items would not appear in a statement of revenues,expenditures,and changes in fund balances prepared for a governmental fund?

Accepted Answer

A)  Depreciation expense. 
B)  Interfund transfers in. 
C)  Revenues from property taxes. 
D)  Expenditures for employee salaries. 
A)  Depreciation expense. 
B)  Interfund transfers in. 
C)  Revenues from property taxes. 
D)  Expenditures for employee salaries.

Question 11

Other financing sources increase fund balance in the same manner as revenues.

Accepted Answer

A) True 
 B)False

Question 12

A statement of revenues,expenditures,and changes in fund balances-budget and actual is

Accepted Answer

A)  Required by GAAP for the General Fund,special revenue funds,and all other governmental fund types for which an annual budget has been adopted. 
B)  Required by GAAP for internal management reports only; not permitted for external financial reporting. 
C)  Required by GAAP for all governmental fund types. 
D)  Optional under GAAP,as long as a budgetary comparison schedule is presented. 
A)  Required by GAAP for the General Fund,special revenue funds,and all other governmental fund types for which an annual budget has been adopted. 
B)  Required by GAAP for internal management reports only; not permitted for external financial reporting. 
C)  Required by GAAP for all governmental fund types. 
D)  Optional under GAAP,as long as a budgetary comparison schedule is presented.

Question 13

Which of the following is not a budgetary account?

Accepted Answer

A)  Encumbrances. 
B)  Encumbrances Outstanding. 
C)  Estimated Revenues. 
D)  Appropriations. 
A)  Encumbrances. 
B)  Encumbrances Outstanding. 
C)  Estimated Revenues. 
D)  Appropriations.

Question 14

The County Commission of Benton County adopted its General Fund budget for the year ending June 30,comprising estimated revenues of $3,200,000 and appropriations of $2,900,000.Benton County utilizes the budgetary accounts required by GASB standards.The budgeted excess of estimated revenues over appropriations will be recorded as

Accepted Answer

A)  A credit to Surplus Revenues,$300,000. 
B)  A debit to Estimated Excess Revenues,$300,000. 
C)  A credit to Budgetary Fund Balance,$300,000. 
D)  A memorandum entry only. 
A)  A credit to Surplus Revenues,$300,000. 
B)  A debit to Estimated Excess Revenues,$300,000. 
C)  A credit to Budgetary Fund Balance,$300,000. 
D)  A memorandum entry only.

Question 15

Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A)  Function. 
B)  Organization unit. 
C)  Character. 
D)  Program. 
A)  Function. 
B)  Organization unit. 
C)  Character. 
D)  Program.

Question 18

The Expenditures control account of a government is debited when

Accepted Answer

A)  The budget is recorded. 
B)  Supplies are ordered. 
C)  Supplies previously encumbered are received. 
D)  The invoice is paid. 
A)  The budget is recorded. 
B)  Supplies are ordered. 
C)  Supplies previously encumbered are received. 
D)  The invoice is paid.

Question 19

If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order,the department's available balance of appropriations for supplies will be

Accepted Answer

A)  Decreased. 
B)  Increased. 
C)  Unaffected. 
D)  Either a or b,depending on the department's specific budgetary control procedures. 
A)  Decreased. 
B)  Increased. 
C)  Unaffected. 
D)  Either a or b,depending on the department's specific budgetary control procedures.

Question 20

Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program or produce a net revenue?

Accepted Answer

A)  General revenues. 
B)  Program revenues. 
C)  Indirect revenues. 
D)  Extraordinary items. 
A)  General revenues. 
B)  Program revenues. 
C)  Indirect revenues. 
D)  Extraordinary items.

Extraordinary items and special items are reported

All decreases in fund financial resources,other than for repayment of fund liabilities,are termed "expenditures."

Which of the following best describes the recommended format for the government-wide statement of activities?

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

Depreciation expense for assets that essentially benefit all functions,such as the city hall,may be reported as a separate line item or on the same line as the General Government or similar function.

The journal entry to record budgeted revenues will include

Financial information for governmental funds must be reported on the economic resources measurement focus.

All encumbrances must be closed at year-end.

Which of the following items would not appear in a statement of revenues,expenditures,and changes in fund balances prepared for a governmental fund?

Other financing sources increase fund balance in the same manner as revenues.

A statement of revenues,expenditures,and changes in fund balances-budget and actual is

Which of the following is not a budgetary account?

Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards.

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

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

The Expenditures control account of a government is debited when

If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order,the department's available balance of appropriations for supplies will be

Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program or produce a net revenue?

Introduction to Accounting and Financial Reporting for Governmental 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-Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters

Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

Extraordinary items and special items are reported

All decreases in fund financial resources,other than for repayment of fund liabilities,are termed "expenditures."

Which of the following best describes the recommended format for the government-wide statement of activities?

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

Depreciation expense for assets that essentially benefit all functions,such as the city hall,may be reported as a separate line item or on the same line as the General Government or similar function.

The journal entry to record budgeted revenues will include

Financial information for governmental funds must be reported on the economic resources measurement focus.

All encumbrances must be closed at year-end.

Which of the following items would not appear in a statement of revenues,expenditures,and changes in fund balances prepared for a governmental fund?

Other financing sources increase fund balance in the same manner as revenues.

A statement of revenues,expenditures,and changes in fund balances-budget and actual is

Which of the following is not a budgetary account?

Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards.

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

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

The Expenditures control account of a government is debited when

If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order,the department's available balance of appropriations for supplies will be

Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program or produce a net revenue?

Introduction to Accounting and Financial Reporting for Governmental 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-Agency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters