Question 1

A special item is a significant transaction that is unusual and infrequent,but within the control of management

Accepted Answer

A) True 
 B)False

Question 2

Expenditures are generally recorded and fund liabilities are recognized

Accepted Answer

A)  When goods and services are received, but only if resources are available in the fund. 
B)  When goods and services are received, regardless of whether or not resources are available in the fund. 
C)  When purchase orders are issued, regardless of whether or not resources are available in the fund. 
D)  When invoices are paid. 
A)  When goods and services are received, but only if resources are available in the fund. 
B)  When goods and services are received, regardless of whether or not resources are available in the fund. 
C)  When purchase orders are issued, regardless of whether or not resources are available in the fund. 
D)  When invoices are paid.

Question 3

The journal entry to record the budget of a Special Revenue Fund would include:

Accepted Answer

A)  A debit to appropriations Control 
B)  A credit to Estimated Revenues Control 
C)  A debit to Estimated Revenues Control 
D)  None of the above, Special Revenue Funds do not record budgets 
A)  A debit to appropriations Control 
B)  A credit to Estimated Revenues Control 
C)  A debit to Estimated Revenues Control 
D)  None of the above, Special Revenue Funds do not record budgets

Question 4

When delinquent taxes are written off:

Accepted Answer

A)  Fund balance will decrease 
B)  Fund balance will be unaffected 
C)  Expenditures will increase 
D)  Both a and c. 
A)  Fund balance will decrease 
B)  Fund balance will be unaffected 
C)  Expenditures will increase 
D)  Both a and c.

Question 5

Interfund transactions are of particular interest to financial statement preparers and users since failure to properly report these transactions will result in two funds being misstated.

Accepted Answer

A) True 
 B)False

Question 6

When establishing funds,governments should attempt to minimize the number of special revenue and other funds,instead using functional classification to record transaction detail.

Accepted Answer

A) True 
 B)False

Question 7

When the General Fund purchases water from an enterprise fund,the General Fund would debit expenditure.

Accepted Answer

A) True 
 B)False

Question 8

GASB standards for property tax revenue recognition under the modified accrual basis of accounting provide that revenue is permitted to be recorded if the expected amount to be collected can be determined and collection is reasonably assured,even if the taxes are expected to be collected more than 60 days after the fiscal year end.

Accepted Answer

A) True 
 B)False

Question 9

In special revenue funds,revenues are recognized when available and measurable.

Accepted Answer

A) True 
 B)False

Question 10

A December 2014 year-end government should record which of the following as expenditures:

Accepted Answer

A)  Salaries Payable due January 20, 2015. 
B)  Bond Payable that matures January 30, 2015. 
C)  Bond Payable that matures February 14, 2015. 
D)  Both A & B. 
A)  Salaries Payable due January 20, 2015. 
B)  Bond Payable that matures January 30, 2015. 
C)  Bond Payable that matures February 14, 2015. 
D)  Both A & B.

Question 11

Which of the following accounts in the General Fund is credited when a purchase order is approved?

Accepted Answer

A)  Appropriations Control. 
B)  Encumbrances Control. 
C)  Budgetary Fund Balance -- Reserve for Encumbrances. 
D)  Vouchers Payable. 
A)  Appropriations Control. 
B)  Encumbrances Control. 
C)  Budgetary Fund Balance -- Reserve for Encumbrances. 
D)  Vouchers Payable.

Question 12

Which of the following is correct with respect to accounting for supplies inventories in a governmental fund?

Accepted Answer

A)  Supplies inventories may be recorded using either the purchase method or the consumption method. 
B)  An amount equal to the ending balance of supplies is reported as Nonspendable Fund Balance. 
C)  The consumption method is preferable over the purchase method since it requires no adjustment to supplies expense when preparing the government-wide statements. 
D)  All of the above are correct 
A)  Supplies inventories may be recorded using either the purchase method or the consumption method. 
B)  An amount equal to the ending balance of supplies is reported as Nonspendable Fund Balance. 
C)  The consumption method is preferable over the purchase method since it requires no adjustment to supplies expense when preparing the government-wide statements. 
D)  All of the above are correct

Question 13

Government fund statements use the modified accrual basis,while government-wide,proprietary fund and fiduciary funds use accrual basis.

Accepted Answer

A) True 
 B)False

Question 14

The journal entry to record the property tax levy for a municipality would include:

Accepted Answer

A)  A credit to Estimated Uncollectible Current Taxes 
B)  A debit to Bad Debts Expense 
C)  A credit to Taxes Receivable - Current 
D)  A and B would both be included in the journal entry 
A)  A credit to Estimated Uncollectible Current Taxes 
B)  A debit to Bad Debts Expense 
C)  A credit to Taxes Receivable - Current 
D)  A and B would both be included in the journal entry

Question 15

A Special Revenue Fund may have a positive Unassigned Fund Balance

Accepted Answer

A) True 
 B)False

Question 16

Interfund Transfers are flows of cash or other assets that:

Accepted Answer

A)  Require repayment. 
B)  Are an exchange between funds of equal value. 
C)  Are taxable. 
D)  Do not require repayment. 
A)  Require repayment. 
B)  Are an exchange between funds of equal value. 
C)  Are taxable. 
D)  Do not require repayment.

Question 17

Which of the following statements is not true regarding modified accrual accounting?

Accepted Answer

A)  Expenditures and fund liabilities are recorded when goods and services are received. 
B)  Debt service expenditures for principal and interest are accrued. 
C)  Expenditures for claims and judgments and landfill postclosure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources. 
D)  Compensated absences and special termination benefits of governmental funds that will not be paid with available resources should be reported as liabilities in the government-wide statements. 
A)  Expenditures and fund liabilities are recorded when goods and services are received. 
B)  Debt service expenditures for principal and interest are accrued. 
C)  Expenditures for claims and judgments and landfill postclosure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources. 
D)  Compensated absences and special termination benefits of governmental funds that will not be paid with available resources should be reported as liabilities in the government-wide statements.

Question 18

The expenditures account equals the amount of supplies purchased during a period under which of the following inventory methods?

Accepted Answer

A)  Perpetual. 
B)  Consumption. 
C)  Periodic. 
D)  Purchases. 
A)  Perpetual. 
B)  Consumption. 
C)  Periodic. 
D)  Purchases.

Question 19

Interfund services provided and used are recognized directly as Transfers In and Transfers Out.

Accepted Answer

A) True 
 B)False

Question 20

Center City's General Fund has the following net resources at December 31,2014:
•Total assets of $846,000 and liabilities of $137,500.
•$400,000 rainy day fund approved by the township governing board
•$3,600 of supplies inventory
•$15,000 state grant for snow removal
•$120,000 contractual obligations for capital projects
•$66,000 of outstanding encumbrances representing purchase orders which will be paid from the General Fund
Required:
 Prepare the fund balance section of the Balance Sheet

Accepted Answer

The answer of Center City's General Fund has the following...

A special item is a significant transaction that is unusual and infrequent,but within the control of management

Expenditures are generally recorded and fund liabilities are recognized

The journal entry to record the budget of a Special Revenue Fund would include:

When delinquent taxes are written off:

Interfund transactions are of particular interest to financial statement preparers and users since failure to properly report these transactions will result in two funds being misstated.

When establishing funds,governments should attempt to minimize the number of special revenue and other funds,instead using functional classification to record transaction detail.

When the General Fund purchases water from an enterprise fund,the General Fund would debit expenditure.

In special revenue funds,revenues are recognized when available and measurable.

A December 2014 year-end government should record which of the following as expenditures:

Which of the following accounts in the General Fund is credited when a purchase order is approved?

Which of the following is correct with respect to accounting for supplies inventories in a governmental fund?

Government fund statements use the modified accrual basis,while government-wide,proprietary fund and fiduciary funds use accrual basis.

The journal entry to record the property tax levy for a municipality would include:

A Special Revenue Fund may have a positive Unassigned Fund Balance

Interfund Transfers are flows of cash or other assets that:

Which of the following statements is not true regarding modified accrual accounting?

The expenditures account equals the amount of supplies purchased during a period under which of the following inventory methods?

Interfund services provided and used are recognized directly as Transfers In and Transfers Out.

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

A special item is a significant transaction that is unusual and infrequent,but within the control of management

Expenditures are generally recorded and fund liabilities are recognized

The journal entry to record the budget of a Special Revenue Fund would include:

When delinquent taxes are written off:

Interfund transactions are of particular interest to financial statement preparers and users since failure to properly report these transactions will result in two funds being misstated.

When establishing funds,governments should attempt to minimize the number of special revenue and other funds,instead using functional classification to record transaction detail.

When the General Fund purchases water from an enterprise fund,the General Fund would debit expenditure.

In special revenue funds,revenues are recognized when available and measurable.

A December 2014 year-end government should record which of the following as expenditures:

Which of the following accounts in the General Fund is credited when a purchase order is approved?

Which of the following is correct with respect to accounting for supplies inventories in a governmental fund?

Government fund statements use the modified accrual basis,while government-wide,proprietary fund and fiduciary funds use accrual basis.

The journal entry to record the property tax levy for a municipality would include:

A Special Revenue Fund may have a positive Unassigned Fund Balance

Interfund Transfers are flows of cash or other assets that:

Which of the following statements is not true regarding modified accrual accounting?

The expenditures account equals the amount of supplies purchased during a period under which of the following inventory methods?

Interfund services provided and used are recognized directly as Transfers In and Transfers Out.

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