Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

A liability is recorded in governmental funds when:

Fund-based financial statements are intended to provide detailed financial information about the governmental,business-type,and fiduciary activities of the primary government.

Which of the following will increase the fund balance of a government at the end of the fiscal year?

Distinguish between the Encumbrances account and the Encumbrances Outstanding account.

The Charleston city council approved and adopted its budget for FY 2014.The budget for the General Fund contained the following amounts: When the General Fund budget for FY 2014 is recorded,indicate whether each of the following accounts should be debited (D),credited (C),or is not affected (N). _____ 1.Estimated revenues _____ 2.Budgetary Fund balance _____ 3.Appropriations _____ 4.Estimated other financing uses _____ 5.Expenditures

The revenue classifications recommended by GASB standards are listed below: A.Taxes B.Licenses and permits C.Intergovernmental revenue D.Charges for services E.Fines and forfeits F.Miscellaneous For each revenue source listed below indicate its correct classification by placing the appropriate letter in the blank space next to the item. ____ 1.Capital grant received by a city from a state ____ 2.Property tax levied by city ____ 3.Library use fees ____ 4.Occupational licenses ____ 5.Loitering fine

Comparisons of budgeted versus actual revenues and expenditures are

GASB standards suggest the following classification scheme for expenditures: A.Function B.Program C.Organization unit D.Activity E.Character F.Object For each of the following expenditure items,indicate its correct classification by placing the appropriate letter in the blank space next to the item. ____ 1.Solid waste collection-residential ____ 2.City clerk ____ 3.Supplies ____ 4.Transportation ____ 5.Health and welfare

An allotment may be described as an internal allocation of funds on a periodic basis usually agreed upon by the department heads and the chief executive.

Under the modified accrual basis of accounting,expenditures generally are not recognized until

Which of the following neither increases nor decreases fund balance of the General Fund during the current period?

When computers are ordered by the mayor's office,the purchase order should be recorded in the General Fund as a debit to:

Revenues and expenditures reported in the budgetary comparison schedule must be reported on the budget basis in the "budget" column and on the GAAP basis in the "actual" column.

The Expenditures control account of a government is credited when:

When encumbrances are recognized at the time purchase orders are issued,indicate whether each of the following accounts of the General Fund should be debited (D),credited (C),or is not affected (N). _____ 1.Encumbrances _____ 2.Encumbrances Outstanding _____ 3.Expenditures _____ 4.Vouchers payable _____ 5.Purchases

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

The Encumbrances control account of a city is decreased when

Which of the following steps in the acquisition of goods and services by an activity accounted for by the General Fund generally occurs first?

Government-wide financial statements include financial information presented for the General Fund and major governmental funds.

The Appropriations account of a governmental fund is credited when