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

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):

When liabilities authorized by an appropriation have been incurred,the appropriation is said to be expended.

What would be the total Nonspendable fund balance?

Define the term "Expenditure" and distinguish between that term and each of the following terms: Expense Disbursement Encumbrance

Rainy day funds that are available "in emergencies" or "revenue shortfalls" may still be classified as committed if the emergency or shortfall condition is specified and is of such a magnitude as to distinguish it from events that are routine.

Which of the following is a decrease in fund financial resources other than through interfund transfers?

Modified accrual accounting is essentially equivalent to cash basis accounting.

Rainy day funds are classified as committed if they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended.

According to GASB Statement No.54 an unassigned fund balance is

Under GASB Statement 33 requirements for accrual accounting,property tax revenue should be recognized in the period that the tax is collected.

Solid waste collection and solid waste disposal are examples of classification by function.

What is the first step a government takes in acquiring goods or services through the General Fund?

According to GASB Statement No.54,spendable fund balances are displayed in which of the following categories?

What would be the total Assigned fund balance?

Ad valorem property tax revenues may not exceed the amount received during the fiscal year plus the amount expected to be received during the first 30 days after the end of the fiscal year.

With respect to reporting for the General Fund,what is the difference between GAAP basis and budgetary basis reporting?

Assume estimated revenues exceed appropriations.When the budget for the General Fund is recorded,the journal entry will include:

When a purchase order or contract is issued as authorized by an appropriation,it is known as an expenditure.

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

If "rainy day" funds are available "in emergencies" or periods of "revenue shortfalls" they are not ordinarily classified as committed.