Question 1

Which of the following results in an encumbrance?

Accepted Answer

A)  Place a purchase order. 
B)  Receive goods previously ordered. 
C)  Receive an invoice on goods previously received. 
D)  Payment of an invoice previously received. 
A)  Place a purchase order. 
B)  Receive goods previously ordered. 
C)  Receive an invoice on goods previously received. 
D)  Payment of an invoice previously received. A

Question 2

If Budgetary Fund Balance was debited in the process of recording a budget for the General Fund of a governmental unit, it can be assumed that:

Accepted Answer

A)  Estimated Revenues exceed Appropriations. 
B)  Estimated Expenses exceed Actual Revenues. 
C)  Actual Expenses exceed Estimated Expenses. 
D)  Appropriations exceed Estimated Revenues. 
A)  Estimated Revenues exceed Appropriations. 
B)  Estimated Expenses exceed Actual Revenues. 
C)  Actual Expenses exceed Estimated Expenses. 
D)  Appropriations exceed Estimated Revenues. D

Question 3

Outstanding encumbrance of $80,000 for the purchase of furniture & fixtures is an example of a restricted fund balance.

Accepted Answer

A) True 
 B)False  False

Question 4

With respect to reporting for the General Fund, what is the difference between GAAP basis and budgetary basis reporting?

Accepted Answer

GAAP basis is used for the Balance Sheet

Question 5

Which of the following expenditure classification schemes may be used by governmental funds

Accepted Answer

A)  Activity 
B)  Character 
C)  Function 
D)  All of the above 
A)  Activity 
B)  Character 
C)  Function 
D)  All of the above

Question 6

Which of the following is true regarding the final appropriations budget?

Accepted Answer

A)  It is legal and binding 
B)  Can be changed at any time by the accounting department 
C)  Can be exceeded by actual appropriations 
D)  It is used only for comparison purposes and is not binding. 
A)  It is legal and binding 
B)  Can be changed at any time by the accounting department 
C)  Can be exceeded by actual appropriations 
D)  It is used only for comparison purposes and is not binding.

Question 7

Examples of budgetary accounts include Estimated Revenues, Appropriations, and Estimated Other Financing Uses.

Accepted Answer

A) True 
 B)False

Question 8

"Unexpended Appropriations Balance" may be interpreted as how much a government may continue to spend and remain within its budget.

Accepted Answer

A) True 
 B)False

Question 9

Only items specifically identified in GASB standards may be reported as deferred inflows or deferred outflows.

Accepted Answer

A) True 
 B)False

Question 10

The GASB has created four "eligibility requirements" that must be met before revenue can be recognized: 1) required classification of recipients, 2) timing, 3) reimbursements, and 4) contingencies.

Accepted Answer

A) True 
 B)False

Question 11

The modified accrual basis is a distinct system of accounting that:

Accepted Answer

A)  Differs from accrual accounting only in its failure to recognize long term assets and liabilities. 
B)  Records expenses and revenues the same as accrual accounting. 
C)  Records expenditures and fund balances. 
D)  Is equivalent to cash basis accounting 
A)  Differs from accrual accounting only in its failure to recognize long term assets and liabilities. 
B)  Records expenses and revenues the same as accrual accounting. 
C)  Records expenditures and fund balances. 
D)  Is equivalent to cash basis accounting

Question 12

An Appropriations budget is the legal authorization for administrators of governmental unit to incur liabilities for purposes specified and to not exceed the amount specified.

Accepted Answer

A) True 
 B)False

Question 13

Property Taxes, , and fines and forfeits are types of nonexchange transactions. These are examples of:

Accepted Answer

A)  Government-mandated nonexchange transactions. 
B)  Imposed nonexchange transactions. 
C)  Deferred Inflows. 
D)  Voluntary nonexchange transactions. 
A)  Government-mandated nonexchange transactions. 
B)  Imposed nonexchange transactions. 
C)  Deferred Inflows. 
D)  Voluntary nonexchange transactions.

Question 14

Which of the following statements is false?

Accepted Answer

A)  Deferred Inflows of Resources have a credit balance but they do not represent obligations of the reporting entity 
B)  Deferred Outflows of Resources have a debit balance but are not assets of the reporting organization. 
C)  Fund Balance is analogous to the capital of an investor-owned entity. 
D)  Only items specifically identified in GASB standards may be reported as deferred inflows or deferred outflows. 
A)  Deferred Inflows of Resources have a credit balance but they do not represent obligations of the reporting entity 
B)  Deferred Outflows of Resources have a debit balance but are not assets of the reporting organization. 
C)  Fund Balance is analogous to the capital of an investor-owned entity. 
D)  Only items specifically identified in GASB standards may be reported as deferred inflows or deferred outflows.

Question 15

$200,000 of unencumbered funds to be used for government operations in the future from the General Fund is an example of an unassigned fund balance.

Accepted Answer

A) True 
 B)False

Question 16

Define the term "Revenue" and distinguish between that term and "Other Financing Sources."

Accepted Answer

Revenue is defined as increases in fund

Question 17

The general ledger journal entry in the General Fund to record the adoption of a budget would include:

Accepted Answer

A)  A credit to Estimated Other Financing Sources Control 
B)  A debit to Budgetary Fund Balance-Reserve for Encumbrances 
C)  A debit to Appropriations Control 
D)  A debit to Estimated Revenues Control 
A)  A credit to Estimated Other Financing Sources Control 
B)  A debit to Budgetary Fund Balance-Reserve for Encumbrances 
C)  A debit to Appropriations Control 
D)  A debit to Estimated Revenues Control

Question 18

With respect to Governmental Funds, Fund Balance must be broken down into assigned and unassigned.

Accepted Answer

A) True 
 B)False

Question 19

The journal entry to record a purchase order in the General Fund would be a debit to Encumbrances Control account and credit to Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 20

When recording the budget, an excess of estimated revenues over appropriations would be debited to Budgetary Fund Balance.

Accepted Answer

A) True 
 B)False

Which of the following results in an encumbrance?

If Budgetary Fund Balance was debited in the process of recording a budget for the General Fund of a governmental unit, it can be assumed that:

Outstanding encumbrance of $80,000 for the purchase of furniture & fixtures is an example of a restricted fund balance.

With respect to reporting for the General Fund, what is the difference between GAAP basis and budgetary basis reporting?

Which of the following expenditure classification schemes may be used by governmental funds

Which of the following is true regarding the final appropriations budget?

Examples of budgetary accounts include Estimated Revenues, Appropriations, and Estimated Other Financing Uses.

"Unexpended Appropriations Balance" may be interpreted as how much a government may continue to spend and remain within its budget.

Only items specifically identified in GASB standards may be reported as deferred inflows or deferred outflows.

The GASB has created four "eligibility requirements" that must be met before revenue can be recognized: 1) required classification of recipients, 2) timing, 3) reimbursements, and 4) contingencies.

The modified accrual basis is a distinct system of accounting that:

An Appropriations budget is the legal authorization for administrators of governmental unit to incur liabilities for purposes specified and to not exceed the amount specified.

Property Taxes, , and fines and forfeits are types of nonexchange transactions. These are examples of:

Which of the following statements is false?

$200,000 of unencumbered funds to be used for government operations in the future from the General Fund is an example of an unassigned fund balance.

Define the term "Revenue" and distinguish between that term and "Other Financing Sources."

The general ledger journal entry in the General Fund to record the adoption of a budget would include:

With respect to Governmental Funds, Fund Balance must be broken down into assigned and unassigned.

The journal entry to record a purchase order in the General Fund would be a debit to Encumbrances Control account and credit to Accounts Payable.

When recording the budget, an excess of estimated revenues over appropriations would be debited to Budgetary Fund Balance.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Interfund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 3: Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Which of the following results in an encumbrance?

If Budgetary Fund Balance was debited in the process of recording a budget for the General Fund of a governmental unit, it can be assumed that:

Outstanding encumbrance of $80,000 for the purchase of furniture & fixtures is an example of a restricted fund balance.

With respect to reporting for the General Fund, what is the difference between GAAP basis and budgetary basis reporting?

Which of the following expenditure classification schemes may be used by governmental funds

Which of the following is true regarding the final appropriations budget?

Examples of budgetary accounts include Estimated Revenues, Appropriations, and Estimated Other Financing Uses.

"Unexpended Appropriations Balance" may be interpreted as how much a government may continue to spend and remain within its budget.

Only items specifically identified in GASB standards may be reported as deferred inflows or deferred outflows.

The GASB has created four "eligibility requirements" that must be met before revenue can be recognized: 1) required classification of recipients, 2) timing, 3) reimbursements, and 4) contingencies.

The modified accrual basis is a distinct system of accounting that:

An Appropriations budget is the legal authorization for administrators of governmental unit to incur liabilities for purposes specified and to not exceed the amount specified.

Property Taxes, , and fines and forfeits are types of nonexchange transactions. These are examples of:

Which of the following statements is false?

$200,000 of unencumbered funds to be used for government operations in the future from the General Fund is an example of an unassigned fund balance.

Define the term "Revenue" and distinguish between that term and "Other Financing Sources."

The general ledger journal entry in the General Fund to record the adoption of a budget would include:

With respect to Governmental Funds, Fund Balance must be broken down into assigned and unassigned.

The journal entry to record a purchase order in the General Fund would be a debit to Encumbrances Control account and credit to Accounts Payable.

When recording the budget, an excess of estimated revenues over appropriations would be debited to Budgetary Fund Balance.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Interfund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters