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

The GASB has categorized nonexchange transactions into two categories: (1)imposed nonexchange revenues and (2)voluntary nonexchange transactions.

An example of expenditure classification by object would be:

What is the difference between an exchange and a nonexchange transaction?

Sales taxes,income taxes,and motor fuel taxes are examples of government-mandated nonexchange transactions.

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

A Non-exchange transaction is one in which a government receives value without directly giving equal value in exchange.

The Revenues account of a government is credited when:

Which of the following statements is correct with respect to GASB Statement No.54 regarding committed funds?

The Fire Department of a certain city received an appropriation in the amount of $12,000,000 for the fiscal year ended December 31,2012.During the month ended January 31,2012,the following transactions occurred: (a)purchase orders were issued in the amount of $400,000; (b)purchase orders,related to (a)above,were filled in the amount of $380,000; the related invoice amount was $368,000; invoices were paid in the amount of $350,000; (c)salaries were accrued and paid in the amount of $575,000; (d)the appropriation was increased in amount of $100,000.The amount available for the Fire Department as of January 31,2012 would be:

The purpose of an encumbrance is to prevent governments from:

When purchase orders are filled and the invoice amount differs from the estimated amount,the amount recorded as an expenditure corresponds to the invoice amount.

The budgetary account used to record budgeted revenues is called "Estimated Revenues Control."

The Budgetary Fund Balance -- Reserve for Encumbrances account is properly considered to be a(an):

Where is tax-supported long term debt reported?

Modified accrual accounting is essentially the same as cash basis except that long term assets are not recorded.

All of the following are commonly used major revenue source classes except for

An expenditure is defined as a decrease in fund financial resources through interfund transfers.

Modified accrual accounting records encumbrances when goods are ordered and accrual accounting only records a liability only when goods are received.

Ad valorem property taxes depend on two factors: the assessed valuation of the property being taxed and the tax rate.

When recording the budget,an excess of estimated revenues over appropriations would be credited to Budgetary Fund Balance.