Question 1

The budgetary account used to control Revenues is called "Estimated Revenues Control."

Accepted Answer

A) True 
 B)False  True

Question 2

The portion of equity that is available for appropriation at year-end is disclosed in what account?

Accepted Answer

A)  Other financing sources 
B)  Fund Balance-Unreserved 
C)  Fund Balance-Reserved 
D)  Fund Balance-Unrestricted 
A)  Other financing sources 
B)  Fund Balance-Unreserved 
C)  Fund Balance-Reserved 
D)  Fund Balance-Unrestricted B

Question 3

The final appropriations budget:

Accepted Answer

A)  Can be changed at any time by the accounting department 
B)  Can be exceeded by actual appropriations 
C)  Is legal and binding 
D)  None of the above 
A)  Can be changed at any time by the accounting department 
B)  Can be exceeded by actual appropriations 
C)  Is legal and binding 
D)  None of the above C

Question 4

A certain government passed its budget for the fiscal year ended December 31, 2009. Estimated Revenues amounted to $13,000,000; Appropriations amounted to $11,900,000; Estimated Other Financing Uses amounted to $800,000; and Estimated Other Financing Sources amounted to $100,000. In the budgetary entry (combining entry):

Accepted Answer

A)  Budgetary Fund Balance would be credited for $400,000 
B)  Budgetary Fund Balance would be credited for $1,800,000 
C)  Budgetary Fund Balance would be unchanged 
D)  Budgetary Fund Balance would be debited for $1,800,000 
A)  Budgetary Fund Balance would be credited for $400,000 
B)  Budgetary Fund Balance would be credited for $1,800,000 
C)  Budgetary Fund Balance would be unchanged 
D)  Budgetary Fund Balance would be debited for $1,800,000

Question 5

An expenditure is defined as a decrease in fund financial resources through interfund transfers.

Accepted Answer

A) True 
 B)False

Question 6

Revenues in governmental fund accounting…

Accepted Answer

A)  Include taxes, fees, resources provided by other governments and interfund transfers 
B)  Are recognized in the fiscal year they are available for expenditure 
C)  Are recognized when earned 
D)  None of the above describes revenues in governmental accounting 
A)  Include taxes, fees, resources provided by other governments and interfund transfers 
B)  Are recognized in the fiscal year they are available for expenditure 
C)  Are recognized when earned 
D)  None of the above describes revenues in governmental accounting

Question 7

GASB standards ____________ that each governmental reporting entity display ___________ General Fund in its general-purpose financial statements.

Accepted Answer

A)  Recommend, one or more 
B)  Recommend, only one 
C)  Require, only one 
D)  Require, one or more 
A)  Recommend, one or more 
B)  Recommend, only one 
C)  Require, only one 
D)  Require, one or more

Question 8

Which of the following results in an expenditure?

Accepted Answer

A)  Place a purchase order 
B)  Receive goods previously ordered 
C)  Receive an invoice on goods previously received 
D)  Payment of an invoice previously received 
A)  Place a purchase order 
B)  Receive goods previously ordered 
C)  Receive an invoice on goods previously received 
D)  Payment of an invoice previously received

Question 9

A Budgetary Comparison Schedule is:

Accepted Answer

A)  Optional under GASB standards for all funds 
B)  Required by GAAP for internal management reports only; not permitted for external financial reporting 
C)  Required for all governmental fund types 
D)  Required for the General Fund and for special revenue funds, for which an annual budget has been adopted 
A)  Optional under GASB standards for all funds 
B)  Required by GAAP for internal management reports only; not permitted for external financial reporting 
C)  Required for all governmental fund types 
D)  Required for the General Fund and for special revenue funds, for which an annual budget has been adopted

Question 10

Ad valorem property taxes depend on two factors: the assessed valuation of the property being taxed and the tax rate.

Accepted Answer

A) True 
 B)False

Question 11

The purpose of an encumbrance is to prevent governments from:

Accepted Answer

A)  Overriding Unauthorized Contracts 
B)  Overspending 
C)  Revising the Approved Budget 
D)  Misappropriating Tax Revenues 
A)  Overriding Unauthorized Contracts 
B)  Overspending 
C)  Revising the Approved Budget 
D)  Misappropriating Tax Revenues

Question 12

"Estimated Revenues Not Yet Realized" will commonly have a net debit balance during the year.

Accepted Answer

A) True 
 B)False

Question 13

At year-end, the balance of Expenditures and Encumbrances accounts are closed to:

Accepted Answer

A)  Fund Balance-Reserved 
B)  Expenses 
C)  Expenditure Control 
D)  Fund Balance-Unreserved 
A)  Fund Balance-Reserved 
B)  Expenses 
C)  Expenditure Control 
D)  Fund Balance-Unreserved

Question 14

When a computer which is to be used by an activity accounted for by the General Fund of a governmental unit is received, it should be recorded in the General Fund as a(an):

Accepted Answer

A)  Expenditure 
B)  Appropriation 
C)  Encumbrance 
D)  Capital asset 
A)  Expenditure 
B)  Appropriation 
C)  Encumbrance 
D)  Capital asset

Question 15

The Reserve for Encumbrances account is properly considered to be a(an):

Accepted Answer

A)  Current liability if paid within a year; otherwise, long-term debt 
B)  Equity account; a reservation of fund equity 
C)  Budgetary account 
D)  Long-term liability 
A)  Current liability if paid within a year; otherwise, long-term debt 
B)  Equity account; a reservation of fund equity 
C)  Budgetary account 
D)  Long-term liability

Question 16

All of the following are classification schemes used to meet the needs of financial statement users except

Accepted Answer

A)  Type 
B)  Activity 
C)  Character 
D)  Function 
A)  Type 
B)  Activity 
C)  Character 
D)  Function

Question 17

The City of Westboro passed an appropriations ordinance for the year ended June 30, 2009. Included in the appropriations ordinance was an appropriation for public safety in the amount of $8,000,000. During the month ended July 31, 2009 the following transactions took place:
a. Purchase orders were issued in the amount of $320,000.
b. Goods were received, related to purchase orders in the amount of 200,000, along with invoices amounting to $205,000.
c. Salaries were paid in the amount of $450,000
d. Because of an economic slowdown, a budget amendment was passed cutting all departments' (annual) appropriations by 5%.
Required:
Compute the amount of appropriations available at July 31, 2009.

Accepted Answer

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Question 18

Encumbrance is the legal authorization for administrators of governmental unit to incur liabilities for purposes specified and to not exceed the amount specified.

Accepted Answer

A) True 
 B)False

Question 19

The Revenues account of a government is credited when:

Accepted Answer

A)  Property taxes are recorded 
B)  Property taxes are collected 
C)  The budget is recorded in the accounts 
D)  Budgetary accounts are closed at the end of the year 
A)  Property taxes are recorded 
B)  Property taxes are collected 
C)  The budget is recorded in the accounts 
D)  Budgetary accounts are closed at the end of the year

Question 20

The amount that Park Ridge would report for expenditures (and encumbrances, if applicable) in its 2007 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances (GAAP Basis) would be:

Accepted Answer

A)  $11,400,000 
B)  $11,800,000 
C)  $11,900,000 
D)  $12,300,000 
A)  $11,400,000 
B)  $11,800,000 
C)  $11,900,000 
D)  $12,300,000

The budgetary account used to control Revenues is called "Estimated Revenues Control."

The portion of equity that is available for appropriation at year-end is disclosed in what account?

The final appropriations budget:

An expenditure is defined as a decrease in fund financial resources through interfund transfers.

Revenues in governmental fund accounting…

GASB standards __ that each governmental reporting entity display _ General Fund in its general-purpose financial statements.

Which of the following results in an expenditure?

A Budgetary Comparison Schedule is:

Ad valorem property taxes depend on two factors: the assessed valuation of the property being taxed and the tax rate.

The purpose of an encumbrance is to prevent governments from:

"Estimated Revenues Not Yet Realized" will commonly have a net debit balance during the year.

At year-end, the balance of Expenditures and Encumbrances accounts are closed to:

When a computer which is to be used by an activity accounted for by the General Fund of a governmental unit is received, it should be recorded in the General Fund as a(an):

The Reserve for Encumbrances account is properly considered to be a(an):

All of the following are classification schemes used to meet the needs of financial statement users except

Encumbrance is the legal authorization for administrators of governmental unit to incur liabilities for purposes specified and to not exceed the amount specified.

The Revenues account of a government is credited when:

The amount that Park Ridge would report for expenditures (and encumbrances, if applicable) in its 2007 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances (GAAP Basis) would be:

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

Overview of Financial Reporting for State and Local Governments

Accounting for the General and Special Revenue Funds

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

Proprietary Funds

Fiduciary Trust Funds

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

Filters

Exam 3: Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

The budgetary account used to control Revenues is called "Estimated Revenues Control."

The portion of equity that is available for appropriation at year-end is disclosed in what account?

The final appropriations budget:

An expenditure is defined as a decrease in fund financial resources through interfund transfers.

Revenues in governmental fund accounting…

GASB standards ____________ that each governmental reporting entity display ___________ General Fund in its general-purpose financial statements.

Which of the following results in an expenditure?

A Budgetary Comparison Schedule is:

Ad valorem property taxes depend on two factors: the assessed valuation of the property being taxed and the tax rate.

The purpose of an encumbrance is to prevent governments from:

"Estimated Revenues Not Yet Realized" will commonly have a net debit balance during the year.

At year-end, the balance of Expenditures and Encumbrances accounts are closed to:

When a computer which is to be used by an activity accounted for by the General Fund of a governmental unit is received, it should be recorded in the General Fund as a(an):

The Reserve for Encumbrances account is properly considered to be a(an):

All of the following are classification schemes used to meet the needs of financial statement users except

Encumbrance is the legal authorization for administrators of governmental unit to incur liabilities for purposes specified and to not exceed the amount specified.

The Revenues account of a government is credited when:

The amount that Park Ridge would report for expenditures (and encumbrances, if applicable) in its 2007 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances (GAAP Basis) would be:

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

Overview of Financial Reporting for State and Local Governments

Accounting for the General and Special Revenue Funds

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

Proprietary Funds

Fiduciary Trust Funds

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

Filters

GASB standards __ that each governmental reporting entity display _ General Fund in its general-purpose financial statements.