Exam 4: Accounting for the General and Special Revenue Funds

When supplies ordered by a governmental unit are received at an actual price which is more than the estimated price on the purchase order,the Encumbrance Control account is:

A local government was awarded a federal grant in the amount of $1,200,000 to provide for a summer employment program for young people.The grant was a reimbursement grant and was awarded on April 30,2012.The local government expended the resources as follows: June,2012,$440,000; July 2012,$400,000; August,2012,$360,000.The federal government provided the funds the following months.The local government would recognize revenues for the fiscal year ended June 30,2012 in which amount?

The General Fund accounts for any resources not reported in one of the other funds.

Expenditures for claims and judgments and landfill postclosure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources.

When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant,under GASB Statement 33?

A donor pledged $200,000 to the fund raising drive of a local government to assist its police officers in obtaining the latest technology.The pledge was made on July 16,2011 but was conditioned on the government raising an additional $200,000 from other donors.By the fiscal year-end of June 30,2012,the local government had raised only $5,000 from other donors.What entry would be made for the initial pledge by the local government during the year ended June 30,2012?

When the General Fund purchases water from an enterprise fund,the General Fund would debit Transfers Out.

Every general purpose government will have one General Fund.

GASB requires both extraordinary and special items to be reported separately after other financing sources and uses in the general and special revenue fund financial statements.

The year end closing entries involve:

Governmental fund financial statements are prepared using the modified accrual basis of accounting.

The Town of Tonawanda has $40,000 of purchase orders outstanding at the end of 2011 which will be honored.The goods and supplies were received early in January,2012.The invoice amounted to $38,750. What is the journal entry necessary to re-establish the encumbrance at the beginning of 2012?

Under the consumption method to account for supplies inventory,an asset is recorded when inventories are acquired,and the expenditure is recorded when the supplies are consumed.

The Revenues Control account of the General Fund is debited when:

The asset,equipment,used by a department accounted for by the General Fund of a governmental unit should be reported in the:

When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected,what type of short-term note is desirable and secured by a government's power to tax?

Regarding interfund transactions,which of the following is not correct?

Which of the following statements is not correct?

When closing the books for the General Fund,an excess of revenues over expenditures and encumbrances would be credited to Fund Balance.

The term special item is defined as: