Exam 4: Accounting for the General and Special Revenue Funds

When closing the General Fund and Special Revenue Funds of a state or local governmental unit,the balance of the operating statement accounts and the balances of the budgetary accounts are closed to Fund Balance.

Governmental fund financial statements are to be prepared on the accrual basis of accounting.

Resources appropriately reported within proprietary or fiduciary funds are excluded from special revenue funds.

Nonreciprocal interfund activity:

Which of the following accounts of a governmental unit is credited to close it at the end of the fiscal year?

Which of the following accounts in the General Fund is credited when a purchase order is approved?

Which of the following statements is not true regarding modified accrual accounting?

Which of the following is true regarding accounting for inventories?

The City of Smithville was awarded a federal grant on May 1,2012 in the amount of $2,400,000 for the purpose of conducting a summer youth employment program.This was a reimbursement-type grant.On August 31,$6,000,000 of expenditures was recorded,and cash was paid out.On October 15 the $6,000,000 was received from the federal government.Record necessary entries as of July 1,August 31,September 30 and October 15.

Which of the following is not likely to be recorded in a special revenue fund?

When recording property taxes,the estimated uncollectible amount of property taxes is:

Which of the following is true regarding modified accrual accounting?

A common use of special revenue funds is to account for intergovernmental grants when federal or state governments provide resources to local governments.

The journal entry to record the re-establishment of encumbrances that were outstanding at the close of the prior period would include:

Liabilities incurred,such as for accrued payroll,but still unpaid at year-end,should be recorded in the General Fund by a debit to which one of the following accounts?

What would be the effect on the General Fund Fund Balance at the end of the current fiscal year of recording the purchase of a $15,000 new computer?

Transactions between funds of the same government are assumed to be arm's length in nature because there is no private inurement.

Interfund services provided and used are recognized as:

Under the modified accrual basis of accounting,GASB standards for property tax revenue recognition provide that revenue should not be recognized for property taxes collected:

The Debt Service Fund would record the receipt of money from the General Fund as other financing sources on the activities Statement of Revenues,Expenditures,and Changes in Fund Balance.