Question 1

When supplies ordered for use in an activity accounted for in the General Fund of a government are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

Accepted Answer

A)  debited for the estimated price on the purchase order. 
B)  credited for the estimated price on the purchase order. 
C)  debited for the actual price for the supplies received. 
D)  credited for the actual price of the supplies received.

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.

Question 3

What are the revenue and expenditure recognition criteria under modified accrual accounting?
 Include in your answer specifically the recognition of property tax revenue.

Accepted Answer

The answer of What are the revenue and expenditure recognition...

Question 4

Revenues in governmental fund accounting…

Accepted Answer

A)  include taxes, fees, resources provided by other governments, and interfund transfers 
B)  are recognized when earned 
C)  are recognized in the fiscal year they are available for expenditure 
D)  none of the above describes revenues in governmental accounting

Question 5

Expenditure classifications by function includes all of the following except

Accepted Answer

A)  Debt Service 
B)  General Government 
C)  Public Safety 
D)  Highways & Streets

Question 6

There are no expenses in modified accrual funds.

Accepted Answer

A) True 
 B)False

Question 7

The Budgetary Comparison Schedule requires a column for the original budget,a column for the final revised budget,and a column for actual figures,computed on the accrual basis.

Accepted Answer

A) True 
 B)False

Question 8

A donation received is considered a voluntary nonexchange transaction only if it is unrestricted.

Accepted Answer

A) True 
 B)False

Question 9

Revenues are raised to finance governmental activities,but revenues may be expended only for purposes and in amounts approved by the legislative branch in compliance with laws of competent jurisdictions. This process is known as the

Accepted Answer

A)  Appropriations Process 
B)  Encumbered Process 
C)  Expended Process 
D)  Budgetary Fund

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

GASB requires that the budgetary basis of accounting for the General Fund used in the Budget-Actual Comparison Schedule be on the same modified accrual basis as the governmental fund Statement of Revenues,Expenditures and Changes in Fund Balance.

Accepted Answer

A) True 
 B)False

Question 13

Rainy day funds are classified as restricted if they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended.

Accepted Answer

A) True 
 B)False

Question 14

In a budgetary entry,if Appropriations Control exceeds Estimated Revenues Control,the excess would be:

Accepted Answer

A)  debited to Budgetary Fund Balance. 
B)  credited to Budgetary Fund Balance. 
C)  credited to Fund Balance-Unassigned. 
D)  credited to Fund Balance-Reserved for Encumbrances.

Question 15

The City of Fairport adopted the following budget for fiscal year 2015:
  In addition,the City reported the following actual amounts for the same fiscal year.
  Required:
 Prepare a budgetary comparison schedule for the City for the year ended December 31,2015 assuming the fund balance of the General Fund (budgetary basis)was $627,000 at January 1,2015. No "original budget" column is required. Include a "variance" column.

Accepted Answer

The answer of The City of Fairport adopted the following...

Question 16

The Budgetary Fund Balance -- Reserve for Encumbrances account is properly considered to be a(an):

Accepted Answer

A)  current liability. 
B)  expenditure. 
C)  long-term liability. 
D)  None of the above.

Question 17

All of the following are commonly used major revenue source classes except for

Accepted Answer

A)  Taxes 
B)  Intergovernmental revenues 
C)  Fines and Forfeits 
D)  Transfers from other funds

Question 18

The GASB has categorized nonexchange transactions into two categories:
 (1)imposed nonexchange revenues and (2)voluntary nonexchange transactions.

Accepted Answer

A) True 
 B)False

Question 19

Net resources of a governmental fund represented by currently due taxes receivable is an example of a nonspendable fund balance

Accepted Answer

A) True 
 B)False

Question 20

Encumbrances are recorded when a purchase order is filled or a contract is executed.

Accepted Answer

A) True 
 B)False

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

When supplies ordered for use in an activity accounted for in the General Fund of a government are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

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:

What are the revenue and expenditure recognition criteria under modified accrual accounting? Include in your answer specifically the recognition of property tax revenue.

Revenues in governmental fund accounting…

Expenditure classifications by function includes all of the following except

There are no expenses in modified accrual funds.

The Budgetary Comparison Schedule requires a column for the original budget,a column for the final revised budget,and a column for actual figures,computed on the accrual basis.

A donation received is considered a voluntary nonexchange transaction only if it is unrestricted.

Revenues are raised to finance governmental activities,but revenues may be expended only for purposes and in amounts approved by the legislative branch in compliance with laws of competent jurisdictions. This process is known as the

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

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

GASB requires that the budgetary basis of accounting for the General Fund used in the Budget-Actual Comparison Schedule be on the same modified accrual basis as the governmental fund Statement of Revenues,Expenditures and Changes in Fund Balance.

Rainy day funds are classified as restricted if they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended.

In a budgetary entry,if Appropriations Control exceeds Estimated Revenues Control,the excess would be:

The Budgetary Fund Balance -- Reserve for Encumbrances account is properly considered to be a(an) :

All of the following are commonly used major revenue source classes except for

The GASB has categorized nonexchange transactions into two categories: (1)imposed nonexchange revenues and (2)voluntary nonexchange transactions.

Net resources of a governmental fund represented by currently due taxes receivable is an example of a nonspendable fund balance

Encumbrances are recorded when a purchase order is filled or a contract is executed.