Exam 17: Governmental Entities: Introduction and General Fund Accounting

Due to an error,the general fund of Pueblo did not record an encumbrance for police equipment that had been ordered but not received on June 30,20X9,the end of its fiscal year.Pueblo's outstanding encumbrances at year-end are nonlapsing.What was the effect of this error on the balance sheet of Pueblo's general fund?

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

Which of the following statements is(are)correct about the funds used by governmental entities? I.Funds are fiscal entities. II.Funds are accounting entities.

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:

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?

The general fund of Caldwell had the following operating budget for the fiscal year beginning July 1,20X9: When the general fund records its operating budget on July 1,20X9,Budgetary Fund Balance-Unassigned should be

Which of the following observations concerning interfund transfers is true?

Under the modified accrual basis of accounting,revenue should be recognized when it is:

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?

Which of the following accounts are debited when closing entries are made for the general fund (assume outstanding encumbrances lapse at year-end)? I.Appropriations Control. II.Estimated Revenues Control. III.Encumbrances. IV.Budgetary Fund Balance-Reserved for Encumbrances. V.Estimated Other Financing Uses-Transfer Out. VI.Revenue-Property Tax.

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

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

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

The Town of Pasco has no supplies inventory in its general fund on January 1,20X8.During 20X8,Pasco incurred expenditures of $200,000 for the acquisition of supplies.On December 31,20X8,Pasco's inventory of supplies amounted to $30,000.Assume Pasco uses the purchase method of accounting for supplies in its general fund and that the village reports on the calendar year.On December 31,20X8,the general fund of Pasco should credit:

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