Exam 17: Governmental Entities: Introduction and General Fund Accounting

Goshen City acquires $36,000 of inventory on November 1, 20X5, having held no inventory previously. On December 31, 20X5, the end of Goshen City's fiscal year, a physical count shows $7,000 still in stock. During 20X6, $5,000 of this inventory is used, resulting in a $2,000 remaining balance of supplies on December 31, 20X6. -Based on the preceding information,which of the following would be the correct account balances for 20X5 if Goshen City used the purchase method of accounting for inventories?

The Board of Commissioners of Vane City adopted its budget for the year ending July 31,comprising estimated revenues of $30,000,000 and appropriations of $29,000,000.Vane formally integrates its budget into the accounting records.What entry should be made for budgeted revenues?

Which of the following observations concerning encumbrances is NOT true?

The following information was obtained from the general fund balance sheet of Lima Village on June 30,20X9,the close of its fiscal year: On June 30,20X9,what was Lima's unassigned fund balance in its general fund?

All of the following are elements of the statement of financial condition for state and local governments with the exception of:

Which of the following items should not be included as revenue for a state government?

The following information pertains to property taxes levied by Sycamore City for 20X7: What amount should Sycamore report for 20X7 net property tax revenues?

A budgetary fund balance - assigned in excess of a balance of encumbrances indicates

What is the correct sequence in the expenditure process in governmental accounting?

Which governmental fund includes resources that are legally restricted so that the governmental entity must maintain the principal and can use only the earnings from the fund's resources to benefit the government's programs for all of its citizens?

In a statement of revenues,expenditures,and changes in fund balance,the unassigned fund balance will be increased by: I.a decrease in the fund balance-Nonspendable II.an excess of other financing sources over other financing uses.

Albee Township's fiscal year ends on June 30.Albee uses encumbrance accounting.On April 5,20X5,an approved $1,000 purchase order was issued for supplies.Albee received these supplies on May 2,20X5,and the $1,000 invoice was approved for payment.What journal entry should Albee make on April 5,20X5,to record the approved purchase order?

At any time,the remaining appropriating authority available to the fund managers is equal to:

Elm City issued a purchase order for supplies with an estimated cost of $5,000.When the supplies were received,the accompanying invoice indicated an actual price of $4,950.What amount should Elm debit (credit)to the budgetary fund balance account after the supplies and invoice were received?

GASB 31 "Accounting for Financial Reporting for Certain Investments and for External Reporting Investment Pools," establishes a general rule that government entities value investments in option contracts,open-ended mutual funds,and debt securities for balance sheet presentation at:

All of the following funds have a financial resources measurement focus with the exception of which fund?

The following information was obtained from the general fund balance sheet of Lincoln County on June 30,20X2,the close of its fiscal year: On June 30,20X2,what was Lincoln's unassigned fund balance in its general fund?

The following balances are included in the subsidiary records of Burwood Village's Parks and Recreation Department at March 31st: How much does the Department have available for additional purchases of supplies?

Discuss major differences between a governmental entity's uses of the modified accrual method and a for-profit corporation's use of the accrual method.

Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies on December 31, 20X8. -Based on the preceding information,which of the following would be the correct account balances for 20X7 if Gotham City used the purchase method of accounting for inventories?