Exam 17: Governmental Entities: Introduction and General Fund Accounting

The general fund of Hatteras acquired a fire truck during the fiscal year ended June 30,20X9.The purchase order for the fire truck was recorded on February 15,20X9.Hatteras' acquisition of the fire truck required which of the following sequences of accounting activities? I.Appropriation II.Encumbrance III.Expenditure

Which of the following items is not recognized as revenue by a governmental unit?

Under the modified accrual basis of accounting for the general fund,expenditures should be recognized in the period in which the related liability is:

On July 25,20X8,the city of Pullman,which reports on a calendar-year basis,ordered five police cars at an estimated cost of $200,000.On August 26,20X8,the police cars were received,and the actual cost amounted to $197,000.Pullman encumbered the appropriation for police cars in its general fund when the cars were ordered.When the police cars were received,the general fund of Pullman should:

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 consumption method of accounting for inventories?

The general ledger of Covington contains the following selected account balances: Covington wants to order additional goods and services before the fiscal year end.What is the unencumbered balance of the budget that may be expended by Covington?