Exam 17: Governmental Entities: Introduction and General Fund Accounting

Which of the following funds should use the modified accrual basis of accounting?

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

The general ledger of Broadway contains the following selected account balances: Broadway 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 Broadway?

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

The general fund of Sun City was billed $7,000 for using the services of one of its internal service funds.The general fund should account for this transaction as a(n)

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 fund of the City of Columbia transferred money to establish an internal service fund for the city's data processing needs.The general fund of Columbia should account for this transaction as a(n):

GASB 34 established four types of interfund activities.Interfund activities are recognized as revenue in a governmental fund for an:

Briefly discuss the various types of governmental funds and proprietary funds.

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:

The general fund of Loveland ordered a new fire truck on November 12,20X8,for $150,000.The order was appropriately encumbered on this date.Loveland received the fire truck on January 15,20X9,and issued a voucher to the manufacturer for $148,600.Loveland uses the calendar year for reporting,and outstanding encumbrances at December 31,20X8,are lapsing.On January 15,20X9,the general fund of Loveland should debit:

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:

The general fund of the Town of Dean levied property taxes of $3,000,000 for the fiscal year beginning on January 1,20X8.It was estimated that 1% of the levy would be uncollectible.During the period January 1,20X8,through December 31,20X8,$2,960,000 of the property tax levy was collected.At December 31,20X8,Dean estimated that $10,000 of property taxes levied in 20X8 would be collected during the first 60 days of 20X9.What amount of property tax revenue should be reported by the general fund for the year ended December 31,20X8?

According to the latest GASB exposure draft,which of the following is the only governmental fund type that may report an unassigned fund balance?

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 20X8 if Gotham City used the consumption method of accounting for inventories?

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 20X8 if Gotham City used the purchase method of accounting for inventories?

Which of the following funds are classified as fiduciary funds?

Which of the following accounts are debited when closing entries are made for the general fund (assume outstanding encumbrances lapse at year-end)?

In accounting for governmental funds,which of the following items could appear only on government-wide financial statements?

When an internal service fund (ISF)enters into a capital lease the transaction is recorded in the: I.fixed assets of the ISF. II.long-term debt of the ISF.