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

The general ledger journal entry in the General Fund to record encumbrances for the issuance of purchase orders would include:

Fines and Forfeits are typically recognized as revenue when the fines are levied and or monies forfeited.

Under modified accrual accounting,property tax revenue should be recognized when measurable and available; available means collected no more than 90 days after year-end.

Briefly discuss how governmental budgeting differs from budgeting for businesses.

Define and give an example of each of the following categories of Fund Balance outlined in GASB Statement No.54: Nonspendable Restricted Committed Assigned Unassigned

What would be the total Restricted Fund balance?

The modified accrual basis is a distinct system of accounting that contains financial statement elements that appear nowhere else.

Which of the following results in an expenditure?

The City of Fairport adopted the following budget for fiscal year 2012: In addition,the City reported the following actual amounts for the same fiscal year. Required: Prepare a budgetary comparison schedule for the City for the year ended December 31,2012 assuming the fund balance of the General Fund (budgetary basis)was $512,000 at January 1,2012.No "original budget" column is required.Include a "variance" column.

Budgets are not legally binding upon administrators.

The fund balance of a government fund is analogous to the capital of an investor-owned entity.

Fund balance indicates the legal claim of voters on the net assets of a proprietary fund.

A transaction in which a government gives or receives value without directly receiving or giving equal value in exchange is known as a(n):

Which of the following statements is not true with respect to GASB Statement No.54 regarding restricted fund balances?

Real estate property tax is an example of derived tax revenue.

When a liability is incurred as authorized by an appropriation,the appropriation is said to be:

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

There are no expenses in modified accrual funds.

Revenues of governmental fund types should be recognized when:

A classification of appropriations and expenditures that deals with the time period involved and includes current expenditures,capital outlays,and debt service is: