Exam 4: Accounting for the General and Special Revenue Funds

Special revenue funds are used if the resources are required to be used to acquire capital assets or for the payment of interest and principal on long-term debt.

Only the General Fund may have a positive Unassigned Fund Balance

General Fund resources were expended in the amount of $185,000 to purchase a new fire truck.The General Fund would debit:

Receivables from sales taxes are recorded in the period that the retailer submits the taxes to the government.

When recording property taxes,the estimated uncollectible amount of property taxes is:

Liabilities incurred,such as for accrued payroll,but still unpaid at year-end,should be recorded in the General Fund by a debit to which one of the following accounts?

Reciprocal interfund activity:

GASB requires both extraordinary and special items to be reported separately after other financing sources and uses in the General and Special Revenue fund financial statements

Which of the following accounts of a governmental unit's General fund is debited when supplies previously ordered are received?

Moving cash from the General Fund to a debt service fund for payment of debt service is an example of a (an)

The journal entry to record the property tax levy for a municipality would include:

Which of the following General Fund accounts would be closed at year end?

The City of Smithville was awarded a federal grant on May 1,2015 in the amount of $2,400,000 for the purpose of conducting a summer youth employment program. This was a reimbursement-type grant. On August 31,$5,475,000 of expenditures was recorded,and cash was paid out. On October 15 the $5,475,000 was received from the federal government. Record necessary entries as of July 1,August 31,September 30 and October 15.

When establishing funds,governments should attempt to minimize the number of special revenue and other funds,instead using functional classification to record transaction detail.

When supplies ordered by a governmental unit are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

The Village of Naples has $19,000 of purchase orders outstanding at the end of 2014 which will be honored. The goods and supplies were received during the second week of January,2015. The invoice amounted to $18,800 What are the journal entries necessary to re-establish the encumbrance and record receipt of the supplies?

The General Fund accounts for any resources not reported in one of the other funds.

When closing out the General Fund and Special Revenue Funds of a state or local governmental unit,the balance of the operating statement are closed to:

When closing the books for the General Fund,an excess of revenues over expenditures and transfers out would be credited to Fund Balance.

Most interfund transfers are not eliminated in the government-wide statements.