Exam 17: Governmental Entities: Introduction and General Fund Accounting

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

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 combination of fund and measurement basis is correct?

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

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?

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 20X6 if Goshen City used the consumption method of accounting for inventories?

Which of the following funds are classified as fiduciary funds?

Revenues from parking meters and parking fines should be reported in the general fund when:

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.

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?

The adjusted trial balance for White River for the fiscal year ended June 30,20X9,is presented below. Required: a.Prepare a statement of revenues,expenditures,and changes in fund balance for White River for the year ended June 30,20X9.Assume there were no supplies or outstanding encumbrances at the beginning of the year. b.Prepare a balance sheet for White River at June 30,20X9.

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?

Which accounts described below would have non-zero balances after the accounts are closed in the general fund of a state or local government? I.Estimated Revenues Control. II.Appropriations Control. III.Budgetary Fund Balance Unreserved. IV.Deferred Revenue. V.Due to Internal Service Fund. VI.Fund Balance-Reserved for Inventories.

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

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,

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:

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:

Which of the following observations concerning encumbrances is NOT true?

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 Battle Creek budgeted a transfer to its capital projects fund for $110,000 to be used in operations during the year ended June 20,20X9.On September 15,20X8,the general fund transferred $110,000 to the capital projects fund.What account should be debited in the general fund on September 15 to record this transfer?