Question 1

The journal entry to record an encumbrance would include:

Accepted Answer

A)  A debit to Encumbrance Control 
B)  A debit to Budgetary Fund Balance - Reserve for Encumbrances 
C)  A credit to Budgetary Fund Balance - Reserve for Encumbrances 
D)  A and C would both be included in the journal entry 
A)  A debit to Encumbrance Control 
B)  A debit to Budgetary Fund Balance - Reserve for Encumbrances 
C)  A credit to Budgetary Fund Balance - Reserve for Encumbrances 
D)  A and C would both be included in the journal entry

Question 2

Under modified accrual accounting,revenues are recognized when measurable and:

Accepted Answer

A)  Available. 
B)  Collected. 
C)  Earned. 
D)  Expenditures have been made. 
A)  Available. 
B)  Collected. 
C)  Earned. 
D)  Expenditures have been made.

Question 3

The General Fund of the City of Bangor purchased water from its Water Utility Fund in the amount of $20,000. The General Fund would debit:

Accepted Answer

A)  Water Expense. 
B)  Other Financing Uses-Transfers Out. 
C)  Expenditures Control. 
D)  None of the above; no entries would be made. 
A)  Water Expense. 
B)  Other Financing Uses-Transfers Out. 
C)  Expenditures Control. 
D)  None of the above; no entries would be made.

Question 4

The City of Aurora increased its revenue budget by $75,000 and the appropriation for the Public Works Department was increased by $100,000. What is the journal entry to record this event in the General Fund?

Accepted Answer

A)  Estimated Revenues Control 75,000 Fund Balance 25,000
Appropriations Control 100,000 
B)  Appropriations Control 100,000 Estimated Revenues Control 75,000
Budgetary Fund Balance 25,000 
C)  Estimated Revenues Control 75,000 Budgetary Fund Balance 25,000
Appropriations Control 100,000 
D)  Estimated Revenues Control 75,000 Appropriations Control 75,000 
A)  Estimated Revenues Control 75,000 Fund Balance 25,000
Appropriations Control 100,000 
B)  Appropriations Control 100,000 Estimated Revenues Control 75,000
Budgetary Fund Balance 25,000 
C)  Estimated Revenues Control 75,000 Budgetary Fund Balance 25,000
Appropriations Control 100,000 
D)  Estimated Revenues Control 75,000 Appropriations Control 75,000

Question 5

The journal entry to record the budget of a Special Revenue Fund would include:

Accepted Answer

A)  A debit to appropriations Control 
B)  A debit to Estimated Revenues Control 
C)  A credit to Estimated Revenues Control 
D)  None of the above, Special Revenue Funds do not record budgets 
A)  A debit to appropriations Control 
B)  A debit to Estimated Revenues Control 
C)  A credit to Estimated Revenues Control 
D)  None of the above, Special Revenue Funds do not record budgets

Question 6

Expenditures are generally recorded and fund liabilities are recognized

Accepted Answer

A)  When goods and services are received, but only if resources are available in the fund. 
B)  When invoices are paid. 
C)  When purchase orders are issued, regardless of whether or not resources are available in the fund. 
D)  When goods and services are received, regardless of whether or not resources are available in the fund. 
A)  When goods and services are received, but only if resources are available in the fund. 
B)  When invoices are paid. 
C)  When purchase orders are issued, regardless of whether or not resources are available in the fund. 
D)  When goods and services are received, regardless of whether or not resources are available in the fund.

Question 7

The journal entry to record the re-establishment of encumbrances that were outstanding at the close of the prior period would include:

Accepted Answer

A)  A credit to Budgetary Fund Balance - Reserve for Encumbrances 
B)  A debit to Budgetary Fund Balance - Reserve for Encumbrances 
C)  A credit to Encumbrance Control 
D)  A and B would both be included in the journal entry 
A)  A credit to Budgetary Fund Balance - Reserve for Encumbrances 
B)  A debit to Budgetary Fund Balance - Reserve for Encumbrances 
C)  A credit to Encumbrance Control 
D)  A and B would both be included in the journal entry

Question 8

The Revenues Control account of the General Fund is debited when:

Accepted Answer

A)  The budget is recorded at the beginning of the year. 
B)  Uncollectible taxes receivable accounts are written off. 
C)  Property taxes are collected. 
D)  None of the above. 
A)  The budget is recorded at the beginning of the year. 
B)  Uncollectible taxes receivable accounts are written off. 
C)  Property taxes are collected. 
D)  None of the above.

Question 9

When accounting for the General Fund,the Encumbrances Control account is credited when:

Accepted Answer

A)  A purchase order is approved. 
B)  The budget is approved. 
C)  An invoice is paid. 
D)  A purchase order is filled or canceled. 
A)  A purchase order is approved. 
B)  The budget is approved. 
C)  An invoice is paid. 
D)  A purchase order is filled or canceled.

Question 10

Government fund statements use the modified accrual basis,while government-wide,proprietary fund and fiduciary funds use accrual basis.

Accepted Answer

A) True 
 B)False

Question 11

Which account would be debited when the City of Corfu issued purchase orders for materials and supplies?

Accepted Answer

A)  Budgetary Fund Balance -- Reserve for Encumbrance. 
B)  Expenditures. 
C)  Encumbrances Control. 
D)  Materials and supplies expense. 
A)  Budgetary Fund Balance -- Reserve for Encumbrance. 
B)  Expenditures. 
C)  Encumbrances Control. 
D)  Materials and supplies expense.

Question 12

Governmental fund financial statements are prepared using the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 13

The General Fund of the City of Lexington approved a tax levy for the calendar year 2015 in the amount of $2,000,000. Of that amount,$30,000 is expected to be uncollectible. During 2015,$1,750,000 was collected. During 2016,$100,000 was collected during the first 30 days,$50,000 was collected during days 31-60,and $70,000 was collected during the days 61-90. During the post-audit,you discovered that the City showed $2,000,000 in revenues. How much revenue should the City recognize in 2015 from this tax levy?

Accepted Answer

A)  $ 1,850,000 
B)  $ 1,900,000 
C)  $ 1,920,000 
D)  $ 2,000,000 
A)  $ 1,850,000 
B)  $ 1,900,000 
C)  $ 1,920,000 
D)  $ 2,000,000

Question 14

In the General Fund,revenues are recognized when measurable and earned.

Accepted Answer

A) True 
 B)False

Question 15

When delinquent taxes are written off:

Accepted Answer

A)  Fund balance will decrease 
B)  Fund balance will be unaffected 
C)  Expenditures will increase 
D)  Both a and c. 
A)  Fund balance will decrease 
B)  Fund balance will be unaffected 
C)  Expenditures will increase 
D)  Both a and c.

Question 16

Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed to expenditure for purposes other than debt service or capital projects.

Accepted Answer

A) True 
 B)False

Question 17

Interfund services provided and used are recognized directly as Revenues and Expenditures.

Accepted Answer

A) True 
 B)False

Question 18

The city of Canandaigua receives proceeds from the sale of land,the transaction is considered to be a special item. The proceeds are:

Accepted Answer

A)  Reported separately after other financing sources and uses. 
B)  Reported as a revenue. 
C)  Reported as an item that changes the Fund Balance. 
D)  Not recorded but the gain on the sale is. 
A)  Reported separately after other financing sources and uses. 
B)  Reported as a revenue. 
C)  Reported as an item that changes the Fund Balance. 
D)  Not recorded but the gain on the sale is.

Question 19

Interfund transactions are of particular interest to financial statement preparers and users since failure to properly report these transactions will result in two funds being misstated.

Accepted Answer

A) True 
 B)False

Question 20

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

Accepted Answer

A)  Appropriation loan. 
B)  Inter-fund loans. 
C)  Other financing sources. 
D)  Tax anticipation notes. 
A)  Appropriation loan. 
B)  Inter-fund loans. 
C)  Other financing sources. 
D)  Tax anticipation notes.

The journal entry to record an encumbrance would include:

Under modified accrual accounting,revenues are recognized when measurable and:

The General Fund of the City of Bangor purchased water from its Water Utility Fund in the amount of $20,000. The General Fund would debit:

The City of Aurora increased its revenue budget by $75,000 and the appropriation for the Public Works Department was increased by $100,000. What is the journal entry to record this event in the General Fund?

The journal entry to record the budget of a Special Revenue Fund would include:

Expenditures are generally recorded and fund liabilities are recognized

The journal entry to record the re-establishment of encumbrances that were outstanding at the close of the prior period would include:

The Revenues Control account of the General Fund is debited when:

When accounting for the General Fund,the Encumbrances Control account is credited when:

Government fund statements use the modified accrual basis,while government-wide,proprietary fund and fiduciary funds use accrual basis.

Which account would be debited when the City of Corfu issued purchase orders for materials and supplies?

Governmental fund financial statements are prepared using the accrual basis of accounting.

In the General Fund,revenues are recognized when measurable and earned.

When delinquent taxes are written off:

Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed to expenditure for purposes other than debt service or capital projects.

Interfund services provided and used are recognized directly as Revenues and Expenditures.

The city of Canandaigua receives proceeds from the sale of land,the transaction is considered to be a special item. The proceeds are:

Interfund transactions are of particular interest to financial statement preparers and users since failure to properly report these transactions will result in two funds being misstated.

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

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

Exam 4: Accounting for the General and Special Revenue Funds

The journal entry to record an encumbrance would include:

Under modified accrual accounting,revenues are recognized when measurable and:

The General Fund of the City of Bangor purchased water from its Water Utility Fund in the amount of $20,000. The General Fund would debit:

The City of Aurora increased its revenue budget by $75,000 and the appropriation for the Public Works Department was increased by $100,000. What is the journal entry to record this event in the General Fund?

The journal entry to record the budget of a Special Revenue Fund would include:

Expenditures are generally recorded and fund liabilities are recognized

The journal entry to record the re-establishment of encumbrances that were outstanding at the close of the prior period would include:

The Revenues Control account of the General Fund is debited when:

When accounting for the General Fund,the Encumbrances Control account is credited when:

Government fund statements use the modified accrual basis,while government-wide,proprietary fund and fiduciary funds use accrual basis.

Which account would be debited when the City of Corfu issued purchase orders for materials and supplies?

Governmental fund financial statements are prepared using the accrual basis of accounting.

In the General Fund,revenues are recognized when measurable and earned.

When delinquent taxes are written off:

Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed to expenditure for purposes other than debt service or capital projects.

Interfund services provided and used are recognized directly as Revenues and Expenditures.

The city of Canandaigua receives proceeds from the sale of land,the transaction is considered to be a special item. The proceeds are:

Interfund transactions are of particular interest to financial statement preparers and users since failure to properly report these transactions will result in two funds being misstated.

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

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