Question 1

Classification of expenditures by function would not include:

Accepted Answer

A)  public safety. 
B)  general government. 
C)  capital outlay. 
D)  sanitation. 
A)  public safety. 
B)  general government. 
C)  capital outlay. 
D)  sanitation.

Question 2

Net resources of a governmental fund represented by prepaid insurance is an example of a nonspendable fund balance.

Accepted Answer

A) True 
 B)False

Question 3

Encumbrances are often deemed unnecessary for recurring expenditures such as payroll.

Accepted Answer

A) True 
 B)False

Question 4

A contractual obligation (such as for the purchase of equipment)is an example of a committed fund balance.

Accepted Answer

A) True 
 B)False

Question 5

To record the budget for the General Fund

Accepted Answer

A)  Estimated Revenue Control is Debited 
B)  Expenditure Control is Debited 
C)  Appropriations Control is Debited 
D)  Revenue Control is Debited 
A)  Estimated Revenue Control is Debited 
B)  Expenditure Control is Debited 
C)  Appropriations Control is Debited 
D)  Revenue Control is Debited

Question 6

When supplies ordered for use in an activity accounted for in the General Fund of a government are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

Accepted Answer

A)  credited for the estimated price on the purchase order. 
B)  debited for the estimated price on the purchase order. 
C)  debited for the actual price for the supplies received. 
D)  credited for the actual price of the supplies received. 
A)  credited for the estimated price on the purchase order. 
B)  debited for the estimated price on the purchase order. 
C)  debited for the actual price for the supplies received. 
D)  credited for the actual price of the supplies received.

Question 7

The City of Westboro passed an appropriations ordinance for the year ended June 30,2012.Included in the appropriations ordinance was an appropriation for public safety in the amount of $8,600,000.During the month ended July 31,2012 the following transactions took place:
a.Purchase orders were issued in the amount of $410,000.
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 4%.
Required:
Compute the amount of appropriations available at July 31,2012.

Accepted Answer

The answer of The City of Westboro passed an appropriations...

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Examples of budgetary accounts include Estimated Revenues,Appropriations,and Estimated Other Financing Uses.

Accepted Answer

A) True 
 B)False

Question 10

In a budgetary entry,if Appropriations Control exceeds Estimated Revenues Control,the excess would be:

Accepted Answer

A)  debited to Budgetary Fund Balance. 
B)  credited to Budgetary Fund Balance. 
C)  credited to Fund Balance-Unreserved. 
D)  credited to Fund Balance-Reserved for Encumbrances. 
A)  debited to Budgetary Fund Balance. 
B)  credited to Budgetary Fund Balance. 
C)  credited to Fund Balance-Unreserved. 
D)  credited to Fund Balance-Reserved for Encumbrances.

Question 11

At what point would the General Fund account "Budgetary Fund Balance -- Reserve for Encumbrances" be debited?

Accepted Answer

A)  When an item is ordered by the government. 
B)  When an authorized liability is incurred (government receives item). 
C)  When cash is paid to the vendor. 
D)  (
A)  or (
B)  depending on authorized appropriations. 
A)  When an item is ordered by the government. 
B)  When an authorized liability is incurred (government receives item). 
C)  When cash is paid to the vendor. 
D)  (
A)  or (
B)  depending on authorized appropriations.

Question 12

The general ledger journal entry in the General Fund to record the adoption of a budget would include:

Accepted Answer

A)  A debit to Estimated Revenues Control 
B)  A credit to Estimated Other Financing sources Control 
C)  A debit to Budgetary Fund Balance-Reserve for Encumbrances 
D)  A debit to Appropriations Control 
A)  A debit to Estimated Revenues Control 
B)  A credit to Estimated Other Financing sources Control 
C)  A debit to Budgetary Fund Balance-Reserve for Encumbrances 
D)  A debit to Appropriations Control

Question 13

The Budgetary Comparison Schedule requires a column for the original budget,a column for the final revised budget,and a column for actual figures,computed on the accrual basis.

Accepted Answer

A) True 
 B)False

Question 14

The Budgetary Comparison Schedule is considered a part of Required Supplementary Information in the Comprehensive Annual Financial Report.

Accepted Answer

A) True 
 B)False

Question 15

Under the modified accrual basis,ad valorem taxes are recognized in the period in which cash is received,regardless of when the taxes were levied.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are budgetary accounts except:

Accepted Answer

A)  Estimated Revenues 
B)  Appropriations 
C)  Expenditures 
D)  All of the above 
A)  Estimated Revenues 
B)  Appropriations 
C)  Expenditures 
D)  All of the above

Question 17

Property Taxes,special assessments,and fines and forfeits are types of nonexchange transactions,and assets should be recognized when an enforceable legal claim exists,or when the resources are received,whichever is first.These are examples of:

Accepted Answer

A)  Government-mandated nonexchange transactions. 
B)  Imposed nonexchange transactions. 
C)  Deferred tax revenues. 
D)  Voluntary nonexchange transactions. 
A)  Government-mandated nonexchange transactions. 
B)  Imposed nonexchange transactions. 
C)  Deferred tax revenues. 
D)  Voluntary nonexchange transactions.

Question 18

Budgetary Fund Balance -- Reserve for Encumbrances (current year)in excess of a balance of Encumbrances Control indicates:

Accepted Answer

A)  An excess of Vouchers Payable over Encumbrances Control. 
B)  An excess of purchase orders released over invoices received. 
C)  An excess of invoices received over purchase orders released. 
D)  A recording error. 
A)  An excess of Vouchers Payable over Encumbrances Control. 
B)  An excess of purchase orders released over invoices received. 
C)  An excess of invoices received over purchase orders released. 
D)  A recording error.

Question 19

A Fair Exchange transaction is one in which a government gives or receives value without directly receiving or giving equal value in exchange.

Accepted Answer

A) True 
 B)False

Question 20

Expenditure classification by character includes current,capital outlay,and debt service.

Accepted Answer

A) True 
 B)False

Classification of expenditures by function would not include:

Net resources of a governmental fund represented by prepaid insurance is an example of a nonspendable fund balance.

Encumbrances are often deemed unnecessary for recurring expenditures such as payroll.

A contractual obligation (such as for the purchase of equipment)is an example of a committed fund balance.

To record the budget for the General Fund

When supplies ordered for use in an activity accounted for in the General Fund of a government are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

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

Examples of budgetary accounts include Estimated Revenues,Appropriations,and Estimated Other Financing Uses.

In a budgetary entry,if Appropriations Control exceeds Estimated Revenues Control,the excess would be:

At what point would the General Fund account "Budgetary Fund Balance -- Reserve for Encumbrances" be debited?

The general ledger journal entry in the General Fund to record the adoption of a budget would include:

The Budgetary Comparison Schedule requires a column for the original budget,a column for the final revised budget,and a column for actual figures,computed on the accrual basis.

The Budgetary Comparison Schedule is considered a part of Required Supplementary Information in the Comprehensive Annual Financial Report.

Under the modified accrual basis,ad valorem taxes are recognized in the period in which cash is received,regardless of when the taxes were levied.

All of the following are budgetary accounts except:

Property Taxes,special assessments,and fines and forfeits are types of nonexchange transactions,and assets should be recognized when an enforceable legal claim exists,or when the resources are received,whichever is first.These are examples of:

Budgetary Fund Balance -- Reserve for Encumbrances (current year)in excess of a balance of Encumbrances Control indicates:

A Fair Exchange transaction is one in which a government gives or receives value without directly receiving or giving equal value in exchange.

Expenditure classification by character includes current,capital outlay,and debt service.

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

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

Classification of expenditures by function would not include:

Net resources of a governmental fund represented by prepaid insurance is an example of a nonspendable fund balance.

Encumbrances are often deemed unnecessary for recurring expenditures such as payroll.

A contractual obligation (such as for the purchase of equipment)is an example of a committed fund balance.

To record the budget for the General Fund

When supplies ordered for use in an activity accounted for in the General Fund of a government are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

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

Examples of budgetary accounts include Estimated Revenues,Appropriations,and Estimated Other Financing Uses.

In a budgetary entry,if Appropriations Control exceeds Estimated Revenues Control,the excess would be:

At what point would the General Fund account "Budgetary Fund Balance -- Reserve for Encumbrances" be debited?

The general ledger journal entry in the General Fund to record the adoption of a budget would include:

The Budgetary Comparison Schedule requires a column for the original budget,a column for the final revised budget,and a column for actual figures,computed on the accrual basis.

The Budgetary Comparison Schedule is considered a part of Required Supplementary Information in the Comprehensive Annual Financial Report.

Under the modified accrual basis,ad valorem taxes are recognized in the period in which cash is received,regardless of when the taxes were levied.

All of the following are budgetary accounts except:

Property Taxes,special assessments,and fines and forfeits are types of nonexchange transactions,and assets should be recognized when an enforceable legal claim exists,or when the resources are received,whichever is first.These are examples of:

Budgetary Fund Balance -- Reserve for Encumbrances (current year)in excess of a balance of Encumbrances Control indicates:

A Fair Exchange transaction is one in which a government gives or receives value without directly receiving or giving equal value in exchange.

Expenditure classification by character includes current,capital outlay,and debt service.

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters