Exam 4: Accounting for the General and Special Revenue Funds

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

When closing the books for the General Fund, an excess of revenues over expenditures and encumbrances would be credited to Fund Balance-Unreserved.

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

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

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

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

The Town of Tonawanda has $21,000 of purchase orders outstanding at the end of 2008 which will be honored. The goods and supplies were received early in January, 2009. The invoice amounted to $19,300 What is the journal entry necessary to record receipt of goods and supplies? A. Encumbrances Control(2008) 21,000 Reserve for Encumbrances (2008) 21,000 B. Reserve for Encumbrances (2008) 21,000 Fund Balance - Unreserved 21,000 C. Encumbrances Control (2008) 21,000 Accounts payable 21,000 D. Reserve for Encumbrances 21,000 Encumbrances Control (2008) 21,000 Expenditures Control (2008) 19,300 Accounts payable 19,300

Under the purchases 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 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 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:

In February, X City ordered $725,000 of supplies. On March 17^th it received all of the ordered supplies and an invoice of $712,300. Which of the following would be recorded upon receipt of the supplies and invoice?

Under the purchases method to account for supplies inventory, the expenditures account is debited when the supplies are received and the inventory account is adjusted at year end if significant.

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.

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

Liabilities incurred, such as for accrued payroll, but still unpaid at year-end, should be recorded in the General Fund by a debit to which one of the following accounts?

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

Which of the following General Fund accounts would be closed at year end?

Which of the following is true regarding modified accrual accounting?

The City of Southern Pines reported the following at year-end, prior to closing entries: Revenues, $11,000,000; Expenditures, $10,100,000; Other Financing Uses, $500,000; Other Financing Sources, $300,000; Encumbrances, $600,000. As a result of all closing entries, the effect on Fund Balance Unreserved would be:

If a government uses the purchases method of accounting for inventories, the expenditures account is debited when supplies are received and the inventory of supplies account is adjusted at year-end.