Question 1

In the General Fund,revenues are recognized when measurable and available.

Accepted Answer

A) True 
 B)False

Question 2

The fund balance represents the amount of resources in the fund.

Accepted Answer

A) True 
 B)False

Question 3

When the materials and supplies are received and the invoice is more than the related purchase order,this entry should be made:

Accepted Answer

A)  Debit Expenditures Control for the amount of the invoice. 
B)  Debit Expenditures Control for the amount of the purchase order. 
C)  Credit Accounts Payable for the amount of the purchase order. 
D)  Credit Encumbrances Control for the amount of the invoice. 
A)  Debit Expenditures Control for the amount of the invoice. 
B)  Debit Expenditures Control for the amount of the purchase order. 
C)  Credit Accounts Payable for the amount of the purchase order. 
D)  Credit Encumbrances Control for the amount of the invoice.

Question 4

The Debt Service Fund would record the receipt of money from the General Fund as nonoperating revenue on the activities Statement of Revenues,Expenditures,and Changes in Fund Balance.

Accepted Answer

A) True 
 B)False

Question 5

When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant,under GASB Statement 33?

Accepted Answer

A)  Only as qualified expenditures are completed. 
B)  When a plan for use of the funds has been developed and approved. 
C)  Only after work is completely finished for the project. 
D)  When the grant is first approved by the granting agency. 
A)  Only as qualified expenditures are completed. 
B)  When a plan for use of the funds has been developed and approved. 
C)  Only after work is completely finished for the project. 
D)  When the grant is first approved by the granting agency.

Question 6

When closing 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

Accepted Answer

A) True 
 B)False

Question 7

Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following accounts of a governmental unit's General Fund is credited to close it at the end of the fiscal year?

Accepted Answer

A)  Appropriations Control. 
B)  Other Financing Sources-Transfers In. 
C)  Budgetary Fund Balance -- Reserve for Encumbrances. 
D)  None of the above. 
A)  Appropriations Control. 
B)  Other Financing Sources-Transfers In. 
C)  Budgetary Fund Balance -- Reserve for Encumbrances. 
D)  None of the above.

Question 9

The initial transfer of cash from the General Fund to establish a motor pool internal service fund would require the General Fund to credit Cash and debit:

Accepted Answer

A)  Investment in Internal Service Fund. 
B)  Other Financing Uses-Transfers Out Control. 
C)  Expenditures - Vehicle maintenance. 
D)  Accounts Receivable-Internal Service Fund. 
A)  Investment in Internal Service Fund. 
B)  Other Financing Uses-Transfers Out Control. 
C)  Expenditures - Vehicle maintenance. 
D)  Accounts Receivable-Internal Service Fund.

Question 10

The entry to re-establish encumbrances related to purchase orders from the prior year would include:

Accepted Answer

A)  A debit to Budgetary Fund Balance - Reserved for Encumbrances. 
B)  A debit to Encumbrances Control. 
C)  A credit to Accounts Payable 
D)  None of the above. 
A)  A debit to Budgetary Fund Balance - Reserved for Encumbrances. 
B)  A debit to Encumbrances Control. 
C)  A credit to Accounts Payable 
D)  None of the above.

Question 11

A local government was awarded a federal grant in the amount of $900,000 to provide for a summer youth employment program for young people.The grant was a reimbursement grant,and a notification of the grant award was received on Apri1 30,2014.The local government expended the resources as follows:
•June,2014,$350,000;
•July,2014,$300,000;
•August,2014,$250,000.
The federal government sent the funds in the month following the expenditure.The local government would recognize revenues for the fiscal year ended June 30,2014 in which amount?

Accepted Answer

A)  $900,000. 
B)  $650,000. 
C)  $350,000. 
D)  $ -0-. 
A)  $900,000. 
B)  $650,000. 
C)  $350,000. 
D)  $ -0-.

Question 12

A local government was awarded a federal grant in the amount of $1,200,000 to provide for a summer employment program for young people.The grant was a reimbursement grant and was awarded on April 30,2014.The local government expended the resources as follows: June,2014,$440,000; July 2014,$400,000; August,2014,$360,000.The federal government provided the funds the following months.The local government would recognize revenues for the fiscal year ended June 30,2014 in which amount?

Accepted Answer

A)  $1,200,000 
B)  $ 840,000 
C)  $ 440,000 
D)  $ -0- 
A)  $1,200,000 
B)  $ 840,000 
C)  $ 440,000 
D)  $ -0-

Question 13

When supplies ordered by a governmental unit are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

Accepted Answer

A)  Credited for the original estimated price for the supplies. 
B)  Credited for the actual price on the purchase invoice. 
C)  Debited for the original estimated price for the supplies 
D)  Debited for the actual price on the purchase invoice. 
A)  Credited for the original estimated price for the supplies. 
B)  Credited for the actual price on the purchase invoice. 
C)  Debited for the original estimated price for the supplies 
D)  Debited for the actual price on the purchase invoice.

Question 14

Debt service expenditures for interest are:

Accepted Answer

A)  Accrued. 
B)  Recorded when due but may be accrued at year end if the debt service due date is less than 30 days after year end. 
C)  Recorded when due but may be accrued at year end if the debt service due date is less than 60 days after year. 
D)  Reported only in the government-wide statements. 
A)  Accrued. 
B)  Recorded when due but may be accrued at year end if the debt service due date is less than 30 days after year end. 
C)  Recorded when due but may be accrued at year end if the debt service due date is less than 60 days after year. 
D)  Reported only in the government-wide statements.

Question 15

When establishing funds,governments should attempt to have a large number of special revenue and other funds to provide the user with maximum detail to understand the transactions.

Accepted Answer

A) True 
 B)False

Question 16

In February,X City ordered $500,000 of supplies.On March 17th it received all of the ordered supplies and an invoice of $492,000.Which of the following would be recorded upon receipt of the supplies and invoice?

Accepted Answer

A)  Debit Encumbrances Control for $500,000. 
B)  Debit Budgetary Fund Balance -- Reserve for Encumbrances for $492,000. 
C)  Debit Encumbrances Control for $492,000. 
D)  Debit Budgetary Fund Balance -- Reserve for Encumbrances for $500,000. 
A)  Debit Encumbrances Control for $500,000. 
B)  Debit Budgetary Fund Balance -- Reserve for Encumbrances for $492,000. 
C)  Debit Encumbrances Control for $492,000. 
D)  Debit Budgetary Fund Balance -- Reserve for Encumbrances for $500,000.

Question 17

Governmental fund financial statements are prepared using the current financial resource measurement focus.

Accepted Answer

A) True 
 B)False

Question 18

Reciprocal interfund activity:

Accepted Answer

A)  Is the internal counterpart to exchange transactions 
B)  Does not include interfund loans 
C)  Includes interfund transfers 
D)  None of the above 
A)  Is the internal counterpart to exchange transactions 
B)  Does not include interfund loans 
C)  Includes interfund transfers 
D)  None of the above

Question 19

The City of Smithville was awarded a federal grant on May 1,2014 in the amount of $2,400,000 for the purpose of conducting a summer youth employment program.This was a reimbursement-type grant.On August 31,$5,475,000 of expenditures was recorded,and cash was paid out.On October 15 the $5,475,000 was received from the federal government.Record necessary entries as of July 1,August 31,September 30 and October 15.

Accepted Answer

The answer of The City of Smithville was awarded a...

Question 20

Indicate which of the following use Modified Accrual Accounting?

Accepted Answer

The answer of Indicate which of the following use Modified...

In the General Fund,revenues are recognized when measurable and available.

The fund balance represents the amount of resources in the fund.

When the materials and supplies are received and the invoice is more than the related purchase order,this entry should be made:

The Debt Service Fund would record the receipt of money from the General Fund as nonoperating revenue on the activities Statement of Revenues,Expenditures,and Changes in Fund Balance.

When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant,under GASB Statement 33?

When closing 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

Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.

Which of the following accounts of a governmental unit's General Fund is credited to close it at the end of the fiscal year?

The initial transfer of cash from the General Fund to establish a motor pool internal service fund would require the General Fund to credit Cash and debit:

The entry to re-establish encumbrances related to purchase orders from the prior year would include:

When supplies ordered by a governmental unit are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

Debt service expenditures for interest are:

When establishing funds,governments should attempt to have a large number of special revenue and other funds to provide the user with maximum detail to understand the transactions.

In February,X City ordered $500,000 of supplies.On March 17^th it received all of the ordered supplies and an invoice of $492,000.Which of the following would be recorded upon receipt of the supplies and invoice?

Governmental fund financial statements are prepared using the current financial resource measurement focus.

Reciprocal interfund activity:

Indicate which of the following use Modified Accrual Accounting?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 4: Accounting for the General and Special Revenue Funds

In the General Fund,revenues are recognized when measurable and available.

The fund balance represents the amount of resources in the fund.

When the materials and supplies are received and the invoice is more than the related purchase order,this entry should be made:

The Debt Service Fund would record the receipt of money from the General Fund as nonoperating revenue on the activities Statement of Revenues,Expenditures,and Changes in Fund Balance.

When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant,under GASB Statement 33?

When closing 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

Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.

Which of the following accounts of a governmental unit's General Fund is credited to close it at the end of the fiscal year?

The initial transfer of cash from the General Fund to establish a motor pool internal service fund would require the General Fund to credit Cash and debit:

The entry to re-establish encumbrances related to purchase orders from the prior year would include:

When supplies ordered by a governmental unit are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

Debt service expenditures for interest are:

When establishing funds,governments should attempt to have a large number of special revenue and other funds to provide the user with maximum detail to understand the transactions.

In February,X City ordered $500,000 of supplies.On March 17th it received all of the ordered supplies and an invoice of $492,000.Which of the following would be recorded upon receipt of the supplies and invoice?

Governmental fund financial statements are prepared using the current financial resource measurement focus.

Reciprocal interfund activity:

Indicate which of the following use Modified Accrual Accounting?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

In February,X City ordered $500,000 of supplies.On March 17^th it received all of the ordered supplies and an invoice of $492,000.Which of the following would be recorded upon receipt of the supplies and invoice?