Exam 4: Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Vehicles used by the Parks and Recreation Department should be accounted for in the General Fund.

The Town of Ashland levied property taxes in the amount of $800,000.The town estimates that 1 percent will be uncollectible.The journal entry to record the tax levy will include

Governments that are temporarily short of cash but that have levied taxes expected to be collectible during the fiscal year are generally able to borrow on short-term notes known as "tax anticipation notes payable".

Which of the following best describes the proper treatment for uncollectible amounts of tax revenue?

Which of the following transactions is classified as an exchange transaction rather than a nonexchange transaction?

Under the dual-track accounting approach used in this text,recording the annual budget for the General Fund requires journal entries in the general journals of both the General Fund and governmental activities at the government-wide level.

Which of the following types of nonexchange transactions recognize revenue when all the eligibility requirements are met?

Revenue from nonexchange transactions may be recognized in all of these circumstances,except

Which of the following funds are governmental funds?

Under the modified accrual basis of accounting,revenues should be recognized when

The payment of liabilities by the General Fund requires the expenditure of an appropriation.

The city of Grand Marais' fiscal year ends on June 30.Grand Marais uses encumbrance accounting.On May 6,a purchase order was approved and issued for supplies in the amount of $6,000.Grand Marais received these supplies on June 2,and the $6,000 invoice was approved for payment.What General Fund journal entry or entries should Grand Marais make on June 2,upon receipt of the supplies and approval of the invoice?

Which of the following journal entries should a government use to record $475,000 for police department salaries and wages during a particular month?

Describe the difference between exchange and nonexchange transactions and discuss the rules for recognition of revenues and expenses/expenditures for each type of transaction.

In fiscal year 2011 the "Expenditures-2010" account represents

The city of Grand Marais' fiscal year ends on June 30.Grand Marais uses encumbrance accounting.On May 6,a purchase order was approved and issued for supplies in the amount of $6,000.Grand Marais received these supplies on June 2,and the $6,000 invoice was approved for payment.What General Fund journal entry should Grand Marais make on May 6,to record the approved purchase order?

When a computer is ordered by a department of the government,the purchase order should be recorded in the General Fund as a debit to

If a government issues debt to finance capital acquisition,how should the related long-term debt be reported by the governmental fund that receives the proceeds of the debt?

The Reserve for Encumbrances account is properly termed a

In which fund would a government most likely account for the assets confiscated in drug arrests and legally required to be used for drug prevention education?