Exam 4: Accounting for the General and Special Revenue Funds

When a special revenue fund accounts for grants that are awarded on a reimbursement basis,revenues are recognized only after qualified expenditures have been recognized.

What would be the effect on the General Fund's Fund Balance at the end of the current fiscal year of recording the purchase of a $15,000 new computer with a five year estimated useful life and zero salvage?

A transfer should be reported in the operating statement of the General Fund as a(an):

Under modified accrual accounting,revenues are recognized when measurable and:

Moving cash from the General Fund to a debt service fund for payment of debt service is an example of a (an)

Which of the following occurs when uncollectible delinquent taxes are written off? (Ignore interest and penalties)

The General Fund of the City of Bangor purchased water from its Water Utility Fund in the amount of $20,000.The General Fund would debit:

Which of the following is false with respect to Special revenue funds?

Under the consumption method to account for supplies inventory,an asset is recorded when inventories are acquired,and the Expenditure is recorded when the supplies are consumed.

When closing out the General Fund and Special Revenue Funds of a state or local governmental unit,the balance of the operating statement accounts and the balances of the budgetary accounts are closed to:

Which of the following is true regarding modified accrual accounting?

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

The Expenditures control account in the General Fund is debited when:

The city of Canandaigua receives proceeds from the sale of land,the transaction is considered to be a special item.The proceeds are:

Under which fund type would you debit expenditure when land is acquired?

The General Fund of the City of Lexington approved a tax levy for the calendar year 2014 in the amount of $2,000,000.Of that amount,$30,000 is expected to be uncollectible.During 2014,$1,750,000 was collected.During 2015,$100,000 was collected during the first 30 days,$70,000 was collected during days 31-60,and $50,000 was collected during the days 61-90.During the postaudit,you discovered that the City showed $2,000,000 in revenues.How much revenue should the City recognize in 2014 from this tax levy?

Governmental fund financial statements are to be prepared on the accrual basis of accounting.

Most interfund transfers are eliminated in the government-wide statements.

Which of the following statements is not correct?

What is the difference between an extraordinary and special item?