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

A nonexchange transaction is one where a government gives or receives value without directly receiving or giving.

Which of the following is not one of the four classes into which nonexchange transactions apply in accordance with GASB Statement No.33?

Sales taxes,income taxes,and motor fuel taxes are examples of exchange transactions.

According to GASB Statement No.54 which of the following statements is not true regarding assigned funds?

At year-end,budgetary authority expires and the balances of Expenditures and Encumbrances accounts are closed to

If Budgetary Fund Balance was credited in the process of recording a budget for the General Fund of a governmental unit,it can be assumed that:

With respect to Governmental Funds,Fund balance must be broken down into assigned and unassigned.

Budgetary accounts begin each year with a zero balance and are closed at the end of each year.

Expenditures under modified accrual accounting are recognized when fund liabilities are incurred.

Classifications by function includes all of the following except

Which of the following would not be a nonexchange transaction for a state government?

An exchange transaction is one where each party is given and receives essentially equal value.

Define the term "Revenue" and distinguish between that term and "Other Financing Sources."

GASB requires a reconciliation between the amount shown as GAAP expenditures in the basic financial statements and the amount shown in the budgetary comparison schedule.

According to GASB Statement No.54 which of the following is an example of a nonspendable fund balance?

The journal entry to record a purchase order in the General Fund would be a debit to encumbrances control account and credit the Budgetary Fund Balance-Reserve for Encumbrances account.

The general ledger journal entry in the General Fund to record actual expenditures and reversal of the associated encumbrance would include:

In its 2012 Budgetary Comparison Schedule,the amount Park Ridge reports for expenditures (and encumbrances,if applicable)would be:

The final appropriations budget:

Wages that have been earned by the employees of a governmental unit,but not paid at year-end,should be recorded in the General Fund by a debit to which of the following accounts?