Exam 17: Governmental Entities: Introduction and General Fund Accounting

The City of Ames uses the consumption method to report its inventory of supplies on its general fund balance sheet.What account is debited in the general fund when Ames acquires supplies?

Which of the following funds are classified as proprietary funds?

At the end of the fiscal year,uncollected property taxes in the general fund should be:

Which of the financial statements described below is prepared by the general fund of a state or local government?

Which of the following characteristics are emphasized in the accounting for state and local government entities? I.Revenues should be matched with expenditures to measure success or failure of the government entity. II.There is an emphasis on expendability of resources to accomplish objectives of the governmental entity.

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?

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.

The general fund of Richmond was billed $22,000 on August 15,20X8,for using the services of one of its internal service funds (ISF).What accounts should be debited and credited,respectively,in the general fund on August 15,20X8,to record this transaction?

The general fund of Park City acquired computer equipment at a cost of $50,000 on May 18,20X9.To record acquisition of this equipment,the general fund of Park City should debit:

Accounting processes differ between a for-profit entity and a governmental entity.Discuss three differences between a governmental entity and a for-profit entity.

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

In a town's general fund operating budget for the year,the amount of its estimated revenues exceeded the amount of its appropriations.This excess should be:

Blue Ridge Township uses the consumption method of accounting for its inventory of supplies.On the December 31,20X7 balance sheet for the general fund,the township reported $10,000 of supplies inventory.During 20X8,expenditures for supplies amounted to $40,000,and,at December 31,20X8,unused supplies totaled $7,000.In the adjusting entry for supplies at December 31,20X8,

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?

Which of the following funds provides goods and services only to other departments or agencies of the government on a cost-reimbursement basis?

The general fund of the City of Atlanta received a check for $10,000 from an Atlanta resident on July 1,20X8.Of the amount received,$4,800 represented full payment of property taxes for 20X8,and the remaining $5,200 represented an advance payment for property taxes of 20X9.On July 1,20X8,the general fund should record the receipt by debiting Cash for $10,000 and by crediting

The general fund of Gillette levied property taxes of $400,000 on November 1,20X8.However,the property taxes are not collectible until May and August of 20X9.Assume Gillette reports on the calendar year.On Gillette's general fund balance sheet at December 31,20X8,the property taxes levied on November 1 should:

Which organization has the authority to establish generally accepted accounting principles for state and local government entities?

The general fund of Wold Township ordered office furniture for the mayor's office on August 1,20X8.The office furniture was estimated to cost $12,000.The office furniture was received on September 1,20X8,with the actual cost being $11,800.Which of the following accounts decreased on September 1,20X8?

Which of the following observations concerning interfund transfers is true?