Question 1

Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.

Accepted Answer

A) True 
 B)False  False

Question 2

The City of Brownsville had a balance in the Budgetary Fund Balance -- Reserve for Encumbrances account at the end of 2011 in the amount of $30,000.During 2012,all purchase orders related to the $90,000 were filled,and the invoice amount was $91,200.Which of the following would be true regarding the Statement of Revenues,Expenditures,and Changes in Fund Balances for 2012? (assume encumbrances do not lapse)

Accepted Answer

A)  The amount shown for Expenditures would include only the $1,200. 
B)  The amount shown for Expenditures would include only the $90,000. 
C)  The amount shown for Expenditures would include the $91,200. 
D)  The amount shown for Expenditures would not include items related to orders placed in 2011. 
A)  The amount shown for Expenditures would include only the $1,200. 
B)  The amount shown for Expenditures would include only the $90,000. 
C)  The amount shown for Expenditures would include the $91,200. 
D)  The amount shown for Expenditures would not include items related to orders placed in 2011. C

Question 3

Expenditures are generally recorded and fund liabilities are recognized

Accepted Answer

A)  When goods and services are received, but only if resources are available in the fund. 
B)  When goods and services are received, regardless of whether or not resources are available in the fund. 
C)  When purchase orders are issued, regardless of whether or not resources are available in the fund. 
D)  When invoices are paid. 
A)  When goods and services are received, but only if resources are available in the fund. 
B)  When goods and services are received, regardless of whether or not resources are available in the fund. 
C)  When purchase orders are issued, regardless of whether or not resources are available in the fund. 
D)  When invoices are paid. B

Question 4

Which of the following is an interfund transaction?

Accepted Answer

A)  Interfund services provided and used 
B)  Interfund transfers 
C)  Interfund reimbursement 
D)  All of the above are interfund transactions 
A)  Interfund services provided and used 
B)  Interfund transfers 
C)  Interfund reimbursement 
D)  All of the above are interfund transactions

Question 5

The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use to demonstrate compliance with those limitations.

Accepted Answer

A) True 
 B)False

Question 6

The journal entry to record the prior year's deferred property taxes (those expected to be collected more than 30 days beyond year end)as revenue in the current year would include:

Accepted Answer

A)  A debit to Revenues Control 
B)  A debit to Deferred Revenues 
C)  A credit to Revenues Control 
D)  B and C would both be included in the journal entry 
A)  A debit to Revenues Control 
B)  A debit to Deferred Revenues 
C)  A credit to Revenues Control 
D)  B and C would both be included in the journal entry

Question 7

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

Accepted Answer

A)  Tax anticipation notes. 
B)  Inter-fund loans. 
C)  Other financing sources. 
D)  Appropriation loan. 
A)  Tax anticipation notes. 
B)  Inter-fund loans. 
C)  Other financing sources. 
D)  Appropriation loan.

Question 8

When delinquent taxes are written off:

Accepted Answer

A)  Fund balance will decrease. 
B)  Fund balance will be unaffected. 
C)  Expenditures will increase. 
D)  Both a and c. 
A)  Fund balance will decrease. 
B)  Fund balance will be unaffected. 
C)  Expenditures will increase. 
D)  Both a and c.

Question 9

The journal entry to record an encumbrance would include:

Accepted Answer

A)  A debit to Encumbrance Control 
B)  A debit to Budgetary Fund Balance - Reserve for Encumbrances 
C)  A credit to Budgetary Fund Balance - Reserve for Encumbrances 
D)  A and C would both be included in the journal entry 
A)  A debit to Encumbrance Control 
B)  A debit to Budgetary Fund Balance - Reserve for Encumbrances 
C)  A credit to Budgetary Fund Balance - Reserve for Encumbrances 
D)  A and C would both be included in the journal entry

Question 10

After closing entries,a special revenue fund's Fund Balance account represents the net amount of resources available for appropriation.

Accepted Answer

A) True 
 B)False

Question 11

Under which fund type would you debit expenditure when land is acquired?

Accepted Answer

A)  Governmental. 
B)  Proprietary. 
C)  Both of the above. 
D)  None of the above. 
A)  Governmental. 
B)  Proprietary. 
C)  Both of the above. 
D)  None of the above.

Question 12

The following transactions occurred in the General Fund of Smyth County.Prepare the journal entry(s)as instructed for each.Assume each item is independent of each other.
$8,500,000.Total planned transfer to debt service funds for 2012 is $900,000.Record the budget (without subsidiary ledger detail).
B.Smyth County was able to get a Tax Anticipation Note that was secured by the county's power to tax.The county borrowed $400,000 and planned to repay the loan as tax collections begin to exceed current disbursements for the year.Upon repayment of the loan the county must pay $10,600 in interest.- Record the Note payable and the later repayment of the note payable.
C.Property taxes of $7,000,000 were levied for Smyth County.Assume that 2.5 percent of these taxes are estimated to be uncollectible due to local economic conditions.- Record the entry when the tax is levied.
D.During 2012 the billing staff inappropriately had duplicate bills for the same properties in the amount of $25,000.Record the entry to correct this error.
E.Upon examining the revenues and expenditures to date,the governing board decided to amend the budget.The revenue budget needs to be decreased by $95,000 and the appropriations should be increased by $60,000.- Record the amendments to the budget when legally approved.
F.A review of the Tax Receivable subsidiary ledger indicates the following:
● $20,000 would be received 120 days after year-end
● $42,000 would be received 90 days after year-end
● $25,000 would be received 60 days after year-end
● $21,000 would be received 30 days after year-end
Record the property tax revenue deferred that is required by the GASB
G.The treasurer of Smyth County approved the write-off of delinquent taxes from 2013 totaling $10,200 and related interest and penalties of $750.- Record the write-off of uncollectible delinquent taxes.

Accepted Answer

The answer of The following transactions occurred in the General...

Question 13

The journal entry to record the property tax levy for a municipality would include:

Accepted Answer

A)  A debit to Estimated Uncollectible Current Taxes 
B)  A credit to Revenues Control 
C)  A credit to Taxes Receivable - Current 
D)  None of the above 
A)  A debit to Estimated Uncollectible Current Taxes 
B)  A credit to Revenues Control 
C)  A credit to Taxes Receivable - Current 
D)  None of the above

Question 14

What is the different accounting treatment with respect to supplies inventory using the Consumption versus the Purchases method?

Accepted Answer

The consumption method is accounted for

Question 15

Most interfund transfers are eliminated in the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 16

Inter-fund Transfers are flows of cash or other assets that:

Accepted Answer

A)  Require repayment. 
B)  Are an exchange between funds of equal value. 
C)  Are taxable. 
D)  Do not require repayment. 
A)  Require repayment. 
B)  Are an exchange between funds of equal value. 
C)  Are taxable. 
D)  Do not require repayment.

Question 17

The Village of Naples has $18,000 of purchase orders outstanding at the end of 2011 which will be honored.The goods and supplies were received during the second week of January,2012.The invoice amounted to $18,600.
What are the journal entries necessary to re-establish the encumbrance and record receipt of the supplies?

Accepted Answer

The answer of The Village of Naples has $18,000 of...

Question 18

A transfer should be reported in the operating statement of the General Fund as a(an):

Accepted Answer

A)  Revenue or Expenditure. 
B)  Due from or Due to Other Funds. 
C)  Other Financing Source or Use. 
D)  None of the above, it is a direct increase or decrease to fund balance. 
A)  Revenue or Expenditure. 
B)  Due from or Due to Other Funds. 
C)  Other Financing Source or Use. 
D)  None of the above, it is a direct increase or decrease to fund balance.

Question 19

What is the effect on the General Fund's fund balance when capital assets are purchased during a year from General Fund revenues?

Accepted Answer

A)  Fund balance is increased. 
B)  Fund balance is decreased. 
C)  There is no effect, since one asset (cash) is replaced by another (capital asset). 
D)  None of the above, capital assets must be purchased through a capital projects fund. 
A)  Fund balance is increased. 
B)  Fund balance is decreased. 
C)  There is no effect, since one asset (cash) is replaced by another (capital asset). 
D)  None of the above, capital assets must be purchased through a capital projects fund.

Question 20

Which of the following is true regarding the use of Special Revenue Funds?

Accepted Answer

A)  Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes. 
B)  Assigned resources may be accounted for in a Special Revenue Fund. 
C)  Special Revenue Funds may only be used when a substantial portion of the resources are provided by restricted or committed revenue sources. 
D)  Once a Special Revenue Fund is established, it will continue to be a Special Revenue Fund until all resources are exhausted. 
A)  Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes. 
B)  Assigned resources may be accounted for in a Special Revenue Fund. 
C)  Special Revenue Funds may only be used when a substantial portion of the resources are provided by restricted or committed revenue sources. 
D)  Once a Special Revenue Fund is established, it will continue to be a Special Revenue Fund until all resources are exhausted.

Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.

Expenditures are generally recorded and fund liabilities are recognized

Which of the following is an interfund transaction?

The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use to demonstrate compliance with those limitations.

The journal entry to record the prior year's deferred property taxes (those expected to be collected more than 30 days beyond year end)as revenue in the current year would include:

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

When delinquent taxes are written off:

The journal entry to record an encumbrance would include:

After closing entries,a special revenue fund's Fund Balance account represents the net amount of resources available for appropriation.

Under which fund type would you debit expenditure when land is acquired?

The journal entry to record the property tax levy for a municipality would include:

What is the different accounting treatment with respect to supplies inventory using the Consumption versus the Purchases method?

Most interfund transfers are eliminated in the government-wide statements.

Inter-fund Transfers are flows of cash or other assets that:

A transfer should be reported in the operating statement of the General Fund as a(an):

What is the effect on the General Fund's fund balance when capital assets are purchased during a year from General Fund revenues?

Which of the following is true regarding the use of Special Revenue Funds?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

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

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

Exam 4: Accounting for the General and Special Revenue Funds

Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.

Expenditures are generally recorded and fund liabilities are recognized

Which of the following is an interfund transaction?

The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use to demonstrate compliance with those limitations.

The journal entry to record the prior year's deferred property taxes (those expected to be collected more than 30 days beyond year end)as revenue in the current year would include:

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

When delinquent taxes are written off:

The journal entry to record an encumbrance would include:

After closing entries,a special revenue fund's Fund Balance account represents the net amount of resources available for appropriation.

Under which fund type would you debit expenditure when land is acquired?

The journal entry to record the property tax levy for a municipality would include:

What is the different accounting treatment with respect to supplies inventory using the Consumption versus the Purchases method?

Most interfund transfers are eliminated in the government-wide statements.

Inter-fund Transfers are flows of cash or other assets that:

A transfer should be reported in the operating statement of the General Fund as a(an):

What is the effect on the General Fund's fund balance when capital assets are purchased during a year from General Fund revenues?

Which of the following is true regarding the use of Special Revenue Funds?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

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

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