Question 1

Which of the following accounts of a government is credited when a purchase order is approved?

Accepted Answer

A)  Encumbrances. 
B)  Encumbrances Outstanding. 
C)  Vouchers Payable. 
D)  Appropriations. 
A)  Encumbrances. 
B)  Encumbrances Outstanding. 
C)  Vouchers Payable. 
D)  Appropriations.

Question 2

If a 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 generally accepted accounting principles (GAAP)

Accepted Answer

A)  The actual amounts in the budgetary comparison schedule should be reported using the government's budgetary basis. 
B)  The actual amounts in the budgetary comparison schedule should be reported on the GAAP basis. 
C)  Both the budgeted and actual amounts in the budgetary comparison schedule prepared as part of the required supplementary information (RSI)should be reported on the GAAP basis; a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body. 
D)  Only a budgetary comparison schedule prepared for the appropriate state oversight body is required. 
A)  The actual amounts in the budgetary comparison schedule should be reported using the government's budgetary basis. 
B)  The actual amounts in the budgetary comparison schedule should be reported on the GAAP basis. 
C)  Both the budgeted and actual amounts in the budgetary comparison schedule prepared as part of the required supplementary information (RSI)should be reported on the GAAP basis; a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body. 
D)  Only a budgetary comparison schedule prepared for the appropriate state oversight body is required.

Question 3

When the budget of a government is recorded and Appropriations exceeds Estimated Revenues,the Budgetary Fund Balance account is

Accepted Answer

A)  Credited at the beginning of the year and debited at the end of the year. 
B)  Credited at the beginning of the year and no entry is made at the end of the year. 
C)  Debited at the beginning of the year and no entry is made at the end of the year. 
D)  Debited at the beginning of the year and credited at the end of the year. 
A)  Credited at the beginning of the year and debited at the end of the year. 
B)  Credited at the beginning of the year and no entry is made at the end of the year. 
C)  Debited at the beginning of the year and no entry is made at the end of the year. 
D)  Debited at the beginning of the year and credited at the end of the year.

Question 4

Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?

Accepted Answer

A)  Enterprise fund. 
B)  Special revenue fund. 
C)  Investment trust fund. 
D)  Pension trust fund. 
A)  Enterprise fund. 
B)  Special revenue fund. 
C)  Investment trust fund. 
D)  Pension trust fund.

Question 5

The Estimated Revenues control account of a government is credited when

Accepted Answer

A)  The budgetary accounts are closed: Yes; Revenues are recorded: No 
B)  The budgetary accounts are closed: No; Revenues are recorded: No 
C)  The budgetary accounts are closed: No; Revenues are recorded: Yes 
D)  The budgetary accounts are closed: Yes; Revenues are recorded: Yes 
A)  The budgetary accounts are closed: Yes; Revenues are recorded: No 
B)  The budgetary accounts are closed: No; Revenues are recorded: No 
C)  The budgetary accounts are closed: No; Revenues are recorded: Yes 
D)  The budgetary accounts are closed: Yes; Revenues are recorded: Yes

Question 6

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?

Accepted Answer

A)  Accrual basis: No; Modified accrual basis: No 
B)  Accrual basis: Yes; Modified accrual basis: No 
C)  Accrual basis: Yes; Modified accrual basis: Yes 
D)  Accrual basis: No; Modified accrual basis: Yes 
A)  Accrual basis: No; Modified accrual basis: No 
B)  Accrual basis: Yes; Modified accrual basis: No 
C)  Accrual basis: Yes; Modified accrual basis: Yes 
D)  Accrual basis: No; Modified accrual basis: Yes

Question 7

The Board of Aldermen of Fitchburg approved the appropriations budget for its General Fund for the year ending December 31,as shown below.
   1)Explain the legal significance of an appropriation and why auditors engaged for a financial and compliance audit need to know the meaning of the term.
2)It is illegal for a government to spend money for any purpose unless a valid appropriation for that purpose exists.Does this legal rule assure good financial management for each government? Why or why not?

Accepted Answer

1)An appropriation is an authorization f

Question 8

Fund balance may be classified as all of the following except

Accepted Answer

A)  Restricted. 
B)  Committed. 
C)  Uncommitted. 
D)  Assigned. 
A)  Restricted. 
B)  Committed. 
C)  Uncommitted. 
D)  Assigned.

Question 9

Which of the following accounts is a budgetary account of a governmental fund?

Accepted Answer

A)  Encumbrances Outstanding. 
B)  Estimated Other Financing Uses. 
C)  Expenditures. 
D)  Other Financing Sources. 
A)  Encumbrances Outstanding. 
B)  Estimated Other Financing Uses. 
C)  Expenditures. 
D)  Other Financing Sources.

Question 10

Available means that a revenue or other financing source is expected to be collected during the current fiscal period or within one month of the fiscal year end.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true regarding the required disclosure of budgetary information?

Accepted Answer

A)  All budgetary disclosures should be presented in the notes to the financial statements. 
B)  There is one specific format for presenting the budgetary comparison statement. 
C)  Budgetary comparisons are required supplementary information (RSI). 
D)  The budgetary reconciliation must focus on the operating statement,but not the statement of position. 
A)  All budgetary disclosures should be presented in the notes to the financial statements. 
B)  There is one specific format for presenting the budgetary comparison statement. 
C)  Budgetary comparisons are required supplementary information (RSI). 
D)  The budgetary reconciliation must focus on the operating statement,but not the statement of position.

Question 12

Which of the following would be classified as a general revenue?

Accepted Answer

A)  Parking meter fees. 
B)  Special assessment charges for snow removal. 
C)  Library fines. 
D)  Fuel taxes earmarked for maintenance of roads and bridges. 
A)  Parking meter fees. 
B)  Special assessment charges for snow removal. 
C)  Library fines. 
D)  Fuel taxes earmarked for maintenance of roads and bridges.

Question 13

Under the modified accrual basis of accounting used by the General Fund,financial resources are considered available if they will be received in the current period or within

Accepted Answer

A)  60 days after year-end. 
B)  90 days after year-end. 
C)  One year. 
D)  The time after year-end defined by each individual government. 
A)  60 days after year-end. 
B)  90 days after year-end. 
C)  One year. 
D)  The time after year-end defined by each individual government.

Question 14

Which of the following terms refers to an actual cost rather than an estimate?

Accepted Answer

A)  Budget. 
B)  Encumbrance. 
C)  Expenditure. 
D)  Appropriation. 
A)  Budget. 
B)  Encumbrance. 
C)  Expenditure. 
D)  Appropriation.

Question 15

GASB standards require that all state and local governments present a statement of revenues,expenditures,and changes in fund balances-budget and actual for the General Fund,and major special revenue funds for which annual budgets have been legally adopted.

Accepted Answer

A) True 
 B)False

Question 16

For what funds do budgetary comparisons need to be presented in connection with the basic financial statements?

Accepted Answer

A)  General Fund. 
B)  General Fund and all major funds. 
C)  All governmental funds with legally adopted annual budgets. 
D)  General Fund and major special revenue funds for which a budget is legally adopted. 
A)  General Fund. 
B)  General Fund and all major funds. 
C)  All governmental funds with legally adopted annual budgets. 
D)  General Fund and major special revenue funds for which a budget is legally adopted.

Which of the following accounts of a government is credited when a purchase order is approved?

If a 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 generally accepted accounting principles (GAAP)

When the budget of a government is recorded and Appropriations exceeds Estimated Revenues,the Budgetary Fund Balance account is

Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?

The Estimated Revenues control account of a government is credited when

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?

Fund balance may be classified as all of the following except

Which of the following accounts is a budgetary account of a governmental fund?

Available means that a revenue or other financing source is expected to be collected during the current fiscal period or within one month of the fiscal year end.

Which of the following statements is true regarding the required disclosure of budgetary information?

Which of the following would be classified as a general revenue?

Under the modified accrual basis of accounting used by the General Fund,financial resources are considered available if they will be received in the current period or within

Which of the following terms refers to an actual cost rather than an estimate?

GASB standards require that all state and local governments present a statement of revenues,expenditures,and changes in fund balances-budget and actual for the General Fund,and major special revenue funds for which annual budgets have been legally adopted.

For what funds do budgetary comparisons need to be presented in connection with the basic financial statements?

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

Which of the following accounts of a government is credited when a purchase order is approved?

If a 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 generally accepted accounting principles (GAAP)

When the budget of a government is recorded and Appropriations exceeds Estimated Revenues,the Budgetary Fund Balance account is

Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?

The Estimated Revenues control account of a government is credited when

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?

Fund balance may be classified as all of the following except

Which of the following accounts is a budgetary account of a governmental fund?

Available means that a revenue or other financing source is expected to be collected during the current fiscal period or within one month of the fiscal year end.

Which of the following statements is true regarding the required disclosure of budgetary information?

Which of the following would be classified as a general revenue?

Under the modified accrual basis of accounting used by the General Fund,financial resources are considered available if they will be received in the current period or within

Which of the following terms refers to an actual cost rather than an estimate?

GASB standards require that all state and local governments present a statement of revenues,expenditures,and changes in fund balances-budget and actual for the General Fund,and major special revenue funds for which annual budgets have been legally adopted.

For what funds do budgetary comparisons need to be presented in connection with the basic financial statements?

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