Question 1

The journal entry to write off an uncollectible property tax receivable for a municipality would include:

Accepted Answer

A)  A credit to Estimated Uncollectible Current Taxes 
B)  A debit to Bad Debts Expense 
C)  A credit to Taxes Receivable - Current 
D)  B and C would both be included in the journal entry 
A)  A credit to Estimated Uncollectible Current Taxes 
B)  A debit to Bad Debts Expense 
C)  A credit to Taxes Receivable - Current 
D)  B and C would both be included in the journal entry

Question 2

Every general purpose government may have more than one General Fund.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is not correct?

Accepted Answer

A)  Transactions between funds of the same government may not be assumed to be arms' length in nature. 
B)  Most interfund transactions are eliminated in the government-wide statements 
C)  Interfund reimbursements are classified as other financing sources or uses 
D)  Interfund transfers are classified as other financing sources or uses 
A)  Transactions between funds of the same government may not be assumed to be arms' length in nature. 
B)  Most interfund transactions are eliminated in the government-wide statements 
C)  Interfund reimbursements are classified as other financing sources or uses 
D)  Interfund transfers are classified as other financing sources or uses

Question 4

The City of Pine Cove levied property taxes for the fiscal year ended June 30,2015,in the amount of $10,000,000.It is estimated that 2% will not be collected.During the year ended June 30,2015,$8,500,000 in property taxes was collected.It is estimated that $550,000 will be collected during the next 60 days,$765,000 will be collected after 60 days,and $185,000 will not be collected.What is the maximum amount Lonesome Pines can recognize as property tax revenue for the fiscal year ended June 30,2015,in its Governmental Funds Statement of Revenues,Expenditures,and Changes in Fund Balances,assuming there were no unpaid property taxes at the end of the previous year?

Accepted Answer

A)  $8,500,000. 
B)  $9,050,000. 
C)  $9,815,000. 
D)  $10,000,000. 
A)  $8,500,000. 
B)  $9,050,000. 
C)  $9,815,000. 
D)  $10,000,000.

Question 5

Which of the following is false with respect to Special revenue funds?

Accepted Answer

A)  Resources appropriately reported within proprietary or fiduciary funds are excluded from special revenue funds. 
B)  A special revenue funds would be used to account for taxes which are required by state law to be used by the government to support specific activities. 
C)  Special revenue funds may be used for any designated purpose to segregate revenues and ensure compliance with restrictions. 
D)  None of the above 
A)  Resources appropriately reported within proprietary or fiduciary funds are excluded from special revenue funds. 
B)  A special revenue funds would be used to account for taxes which are required by state law to be used by the government to support specific activities. 
C)  Special revenue funds may be used for any designated purpose to segregate revenues and ensure compliance with restrictions. 
D)  None of the above

Question 6

Proceeds from the Sale of Land in the General Fund is a source of funds and would be closed at year end.

Accepted Answer

A) True 
 B)False

Question 7

A December 2015 year-end government should record which of the following as expenditures:

Accepted Answer

A)  Salaries Payable due January 20, 2015. 
B)  Bond Payable that matures January 30, 2015. 
C)  Bond Payable that matures February 14, 2015. 
D)  Both A & B. 
A)  Salaries Payable due January 20, 2015. 
B)  Bond Payable that matures January 30, 2015. 
C)  Bond Payable that matures February 14, 2015. 
D)  Both A & B.

Question 8

In the General Fund,revenues are recognized when earned and available

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is not true regarding modified accrual accounting?

Accepted Answer

A)  Expenditures and fund liabilities are recorded when goods and services are received. 
B)  Debt service expenditures for principal and interest are accrued. 
C)  Expenditures for claims and judgments and landfill post-closure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources. 
D)  Compensated absences and special termination benefits of governmental funds that will not be paid with available resources should be reported as liabilities in the government-wide statements. 
A)  Expenditures and fund liabilities are recorded when goods and services are received. 
B)  Debt service expenditures for principal and interest are accrued. 
C)  Expenditures for claims and judgments and landfill post-closure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources. 
D)  Compensated absences and special termination benefits of governmental funds that will not be paid with available resources should be reported as liabilities in the government-wide statements.

Question 10

$60,000 of property tax owed to the city of Akron will not be collected within 60 days after year end. The year-end journal entry to record this information would include a:

Accepted Answer

A)  A credit to Revenues Control. 
B)  A debit to Deferred Inflows - Property Taxes. 
C)  A credit to Income Taxes Receivable. 
D)  A debit to Revenues Control. 
A)  A credit to Revenues Control. 
B)  A debit to Deferred Inflows - Property Taxes. 
C)  A credit to Income Taxes Receivable. 
D)  A debit to Revenues Control.

Question 11

When the materials and supplies are received and the invoice is more than the related purchase order,this entry should be made:

Accepted Answer

A)  Debit Expenditures Control for the amount of the invoice. 
B)  Debit Expenditures Control for the amount of the purchase order. 
C)  Credit Accounts Payable for the amount of the purchase order. 
D)  Credit Encumbrances Control for the amount of the invoice. 
A)  Debit Expenditures Control for the amount of the invoice. 
B)  Debit Expenditures Control for the amount of the purchase order. 
C)  Credit Accounts Payable for the amount of the purchase order. 
D)  Credit Encumbrances Control for the amount of the invoice.

Question 12

When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant,under GASB Statement 33?

Accepted Answer

A)  Only after work is completely finished for the project. 
B)  When a plan for use of the funds has been developed and approved. 
C)  Only as qualified expenditures are incurred. 
D)  When the grant is first approved by the granting agency. 
A)  Only after work is completely finished for the project. 
B)  When a plan for use of the funds has been developed and approved. 
C)  Only as qualified expenditures are incurred. 
D)  When the grant is first approved by the granting agency.

Question 13

Which of the following is true regarding modified accrual accounting?

Accepted Answer

A)  Revenues are recognized when measurable and available to finance expenditures of the current period. 
B)  Expenditures are generally recognized as the related goods or services are received. 
C)  Both (a) and (b) above. 
D)  None of the above. 
A)  Revenues are recognized when measurable and available to finance expenditures of the current period. 
B)  Expenditures are generally recognized as the related goods or services are received. 
C)  Both (a) and (b) above. 
D)  None of the above.

Question 14

Regarding interfund transactions,which of the following is not correct?

Accepted Answer

A)  Transaction between funds are not assumed to be arm's length in nature 
B)  Interfund transactions must be repaid. 
C)  Failure to properly report interfund transactions will result in two funds being misstated. 
D)  Interfund reimbursement is a payment by one fund to second fund to repay it for a purchase which belongs in the first fund. 
A)  Transaction between funds are not assumed to be arm's length in nature 
B)  Interfund transactions must be repaid. 
C)  Failure to properly report interfund transactions will result in two funds being misstated. 
D)  Interfund reimbursement is a payment by one fund to second fund to repay it for a purchase which belongs in the first fund.

Question 15

The City of Morganville had the following pre-closing account balances in its General Fund as of April 30,2015. Debits and credits are not separated; each account had its "normal" balance. Among the expenditures recorded this year is an amount expended on supplies ordered at the end of the previous year. Assume that encumbrances do not lapse and that the City failed to make the journal entry(s)necessary to re-establish the encumbrance in the current year.
Required:
(a)Prepare all entries necessary to close the General Fund of the City of Morganville.
(b)Prepare a Statement of Revenues,Expenditures,and Changes in Fund Balance for the General Fund for the City of Morganville for the Year Ended April 30,2015. End with the ending fund balance. This is the GAAP operating statement.

Accepted Answer

The answer of The City of Morganville had the following...

Question 16

The term special item is defined as:

Accepted Answer

A)  Unusual or infrequent but within management's control. 
B)  Frequent and unusual but within management's control. 
C)  Frequent and unusual and not within management's control. 
D)  Unusual or infrequent and not within management's control. 
A)  Unusual or infrequent but within management's control. 
B)  Frequent and unusual but within management's control. 
C)  Frequent and unusual and not within management's control. 
D)  Unusual or infrequent and not within management's control.

Question 17

Indicate which of the following use Modified Accrual Accounting?

Accepted Answer

The answer of Indicate which of the following use Modified...

Question 18

Under which fund type would you debit expenditure when land is acquired?

Accepted Answer

A)  Proprietary. 
B)  Governmental. 
C)  Both of the above. 
D)  None of the above. 
A)  Proprietary. 
B)  Governmental. 
C)  Both of the above. 
D)  None of the above.

Question 19

The Expenditures control account in the General Fund is debited when:

Accepted Answer

A)  Supplies are ordered. 
B)  The budget is recorded. 
C)  The books are closed at the end of the year. 
D)  Equipment previously ordered is received. 
A)  Supplies are ordered. 
B)  The budget is recorded. 
C)  The books are closed at the end of the year. 
D)  Equipment previously ordered is received.

Question 20

Governmental fund financial statements are to be prepared on the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

The journal entry to write off an uncollectible property tax receivable for a municipality would include:

Every general purpose government may have more than one General Fund.

Which of the following statements is not correct?

Which of the following is false with respect to Special revenue funds?

Proceeds from the Sale of Land in the General Fund is a source of funds and would be closed at year end.

A December 2015 year-end government should record which of the following as expenditures:

In the General Fund,revenues are recognized when earned and available

Which of the following statements is not true regarding modified accrual accounting?

$60,000 of property tax owed to the city of Akron will not be collected within 60 days after year end. The year-end journal entry to record this information would include a:

When the materials and supplies are received and the invoice is more than the related purchase order,this entry should be made:

When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant,under GASB Statement 33?

Which of the following is true regarding modified accrual accounting?

Regarding interfund transactions,which of the following is not correct?

The term special item is defined as:

Indicate which of the following use Modified Accrual Accounting?

Under which fund type would you debit expenditure when land is acquired?

The Expenditures control account in the General Fund is debited when:

Governmental fund financial statements are to be prepared on the accrual basis of accounting.

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

Overview of Financial Reporting for State and Local Governments

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

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

Proprietary Funds

Fiduciary Funds, Inter-fund Transactions

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

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

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Exam 4: Accounting for the General and Special Revenue Funds

The journal entry to write off an uncollectible property tax receivable for a municipality would include:

Every general purpose government may have more than one General Fund.

Which of the following statements is not correct?

Which of the following is false with respect to Special revenue funds?

Proceeds from the Sale of Land in the General Fund is a source of funds and would be closed at year end.

A December 2015 year-end government should record which of the following as expenditures:

In the General Fund,revenues are recognized when earned and available

Which of the following statements is not true regarding modified accrual accounting?

$60,000 of property tax owed to the city of Akron will not be collected within 60 days after year end. The year-end journal entry to record this information would include a:

When the materials and supplies are received and the invoice is more than the related purchase order,this entry should be made:

When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant,under GASB Statement 33?

Which of the following is true regarding modified accrual accounting?

Regarding interfund transactions,which of the following is not correct?

The term special item is defined as:

Indicate which of the following use Modified Accrual Accounting?

Under which fund type would you debit expenditure when land is acquired?

The Expenditures control account in the General Fund is debited when:

Governmental fund financial statements are to be prepared on the accrual basis of accounting.

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

Overview of Financial Reporting for State and Local Governments

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

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

Proprietary Funds

Fiduciary Funds, Inter-fund Transactions

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

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters