Exam 12: Governmental Entities: Introduction and General Fund Accounting

Which accounts described below would have non-zero balances after the accounts are closed in the general fund of a state or local government?

What amount should be reported as expenditures for the current fiscal year when accounting for inventories of supplies under the purchase method and under the consumption method?

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 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.

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:

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

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

Which of the following observations concerning interfund transfers is true?

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?

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

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:

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?

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?

Which of the following items should not be included as revenue for a state government?

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

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

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)

Which of the following statements best describes the reporting process for profit seeking and governmental entities?

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

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?