Question 1

A county borrows cash on a short-term basis.Which of the following account could be credited in this transaction?

Accepted Answer

A) tax anticipation notes payable 
B) revenues from borrowing 
C) appropriations--borrowed money 
D) assigned fund balance 
A) tax anticipation notes payable 
B) revenues from borrowing 
C) appropriations--borrowed money 
D) assigned fund balance A

Question 2

A city borrows $800,000 in January because it does not receive property taxes until May.It borrows on a tax anticipation note,which it will repay in May,when the taxes are collected.How would the city classify the note if it were to prepare financial statements on March 31?

Accepted Answer

A) as an other financing source 
B) as a liability 
C) as a revenue 
D) as a direct increase in equity 
A) as an other financing source 
B) as a liability 
C) as a revenue 
D) as a direct increase in equity B

Question 3

Which line item does not properly appear in the Statement of Revenues,Expenditures,and Changes in Fund Balance (operating statement)of a governmental fund?

Accepted Answer

A) expenditures--debt service 
B) expenditures--capital outlay 
C) property taxes receivable 
D) beginning fund balance 
A) expenditures--debt service 
B) expenditures--capital outlay 
C) property taxes receivable 
D) beginning fund balance C

Question 4

A favorable expenditures variance signifies that,during the year,

Accepted Answer

A) Unassigned fund balance increased 
B) actual spending was less than budgeted spending 
C) estimated revenues were less than actual revenues 
D) total expenditures did not exceed total encumbrances 
A) Unassigned fund balance increased 
B) actual spending was less than budgeted spending 
C) estimated revenues were less than actual revenues 
D) total expenditures did not exceed total encumbrances

Question 5

On January 1,2009,a city adopted a budget wherein estimated revenues were $30,000 greater than the appropriations.Because of a slowdown in the economy,it became apparent in June that there would be a shortfall of $25,000 in sales tax collections.The city amended its budget to take account of the reduction in estimated sales tax collections.What entry should the city make?

Accepted Answer

A) debit sales tax revenues and credit estimated revenues - sales tax for $25,000 
B) debit appropriations and credit estimated revenues - sales tax for $25,000 
C) debit estimated revenues - sales tax and credit sales tax revenues for $25,000 
D) debit budgetary fund balance and credit estimated revenues - sales tax for $25,000 
A) debit sales tax revenues and credit estimated revenues - sales tax for $25,000 
B) debit appropriations and credit estimated revenues - sales tax for $25,000 
C) debit estimated revenues - sales tax and credit sales tax revenues for $25,000 
D) debit budgetary fund balance and credit estimated revenues - sales tax for $25,000

Question 6

What is budgetary fund balance?

Accepted Answer

A) budgetary fund balance is assigned 
B) budgetary fund balance is permanent in nature 
C) budgetary fund balance is the anticipated change in fund balance as a result of adopting the budget 
D) budgetary fund balance can be appropriated 
A) budgetary fund balance is assigned 
B) budgetary fund balance is permanent in nature 
C) budgetary fund balance is the anticipated change in fund balance as a result of adopting the budget 
D) budgetary fund balance can be appropriated

Question 7

A local government always will have

Accepted Answer

The answer of A local government always will have ...

Question 8

Which of the following basis of accounting should be used when preparing a budgetary comparison schedule for a government's General Fund?

Accepted Answer

A) budgetary basis of accounting 
B) accrual basis of accounting 
C) modified accrual basis of accounting 
D) GASB recommends the accrual basis of accounting be used,but does not require it. 
A) budgetary basis of accounting 
B) accrual basis of accounting 
C) modified accrual basis of accounting 
D) GASB recommends the accrual basis of accounting be used,but does not require it.

Question 9

At year-end,a city's expenditures exceed its revenues.When the accounts are closed,which of the following entries will be made to record this fact?

Accepted Answer

A) a credit to fund balance 
B) a debit to fund balance 
C) a credit to Appropriations 
D) a debit to Budgetary fund balance 
A) a credit to fund balance 
B) a debit to fund balance 
C) a credit to Appropriations 
D) a debit to Budgetary fund balance

Question 10

Under the modified accrual basis of accounting

Accepted Answer

A) expenditures are recognized when paid in cash if not previously encumbered 
B) property tax revenues are recognized when earned 
C) property tax revenues are recognized when measurable and available 
D) encumbrances are equivalent to expenditures 
A) expenditures are recognized when paid in cash if not previously encumbered 
B) property tax revenues are recognized when earned 
C) property tax revenues are recognized when measurable and available 
D) encumbrances are equivalent to expenditures

Question 11

In governmental accounting,vouchers payable is most similar to which of the following accounts used by business enterprises?

Accepted Answer

A) contributed capital 
B) accounts payable 
C) dividends payable 
D) unearned revenues 
A) contributed capital 
B) accounts payable 
C) dividends payable 
D) unearned revenues

Question 12

What basis of accounting is used to recognize revenues in the General fund?

Accepted Answer

A) cash basis 
B) modified accrual basis 
C) accrual basis 
D) budgetary basis 
A) cash basis 
B) modified accrual basis 
C) accrual basis 
D) budgetary basis

Question 13

Liabilities in the General Fund and Special Revenue Fund represent:

Accepted Answer

A) claims against the fund's cash resources 
B) claims against the fund's current financial resources 
C) claims against the fund's economic resources 
D) claims that must be paid within one year 
A) claims against the fund's cash resources 
B) claims against the fund's current financial resources 
C) claims against the fund's economic resources 
D) claims that must be paid within one year

Question 14

At the beginning of its fiscal year,the Town of Harmon estimates that its revenues for street maintenance activities are $100,000,and it appropriates $90,000 for street maintenance supplies.It currently has outstanding encumbrances for street maintenance supplies of $40,000 and has incurred expenditures for street maintenance supplies of $30,000.How much does the Town of Harmon currently have available to spend for street maintenance supplies?

Accepted Answer

A) $20,000 
B) $30,000 
C) $40,000 
D) $50,000 
E) $60,000 
A) $20,000 
B) $30,000 
C) $40,000 
D) $50,000 
E) $60,000

Question 15

Which line item would not properly appear in the closing entry of a governmental fund?

Accepted Answer

A) expenditures-public safety salaries 
B) expenditures-debt service 
C) fund balance 
D) expenditures-depreciation 
A) expenditures-public safety salaries 
B) expenditures-debt service 
C) fund balance 
D) expenditures-depreciation

Question 16

A city that uses encumbrance accounting places a purchase order for three fire trucks at a cost of $100,000 each,specifying that two are to be delivered in March and one in August.The vendor delivers the first two trucks,and sends an invoice for $200,000.How should the city handle the encumbrance accounting when it prepares the $200,000 voucher to pay for the first two trucks?

Accepted Answer

A) it should make no encumbrance entry until all three trucks have been received 
B) it should reduce encumbrances by $100,000 
C) it should reduce encumbrances by $200,000 
D) it should reduce encumbrances by $300,000 
A) it should make no encumbrance entry until all three trucks have been received 
B) it should reduce encumbrances by $100,000 
C) it should reduce encumbrances by $200,000 
D) it should reduce encumbrances by $300,000

Question 17

Which of the following could be reported in the balance sheet for a General Fund?

Accepted Answer

A) Tax anticipation notes 
B) Revenue anticipation notes 
C) Serial bonds 
D) all of the above 
E) only a and b 
A) Tax anticipation notes 
B) Revenue anticipation notes 
C) Serial bonds 
D) all of the above 
E) only a and b

Question 18

If the fund balance of a Special Revenue Fund has a debit balance at the end of the fiscal year,it means that

Accepted Answer

A) revenues are less than expenditures for the year 
B) actual revenues are less than estimated revenues 
C) total liabilities exceed total assets 
D) expenditures consistently exceeded encumbrances 
A) revenues are less than expenditures for the year 
B) actual revenues are less than estimated revenues 
C) total liabilities exceed total assets 
D) expenditures consistently exceeded encumbrances

Question 19

Expenditures of a city or county's governmental funds include

Accepted Answer

A) cash disbursements made to settle short-term liabilities 
B) depreciation of general fixed assets 
C) decreases in fund balance for operating purposes but not for capital asset acquisitions 
D) decreases in fund balance for operating purposes,repayment of debt principal and interest,and capital asset acquisitions 
A) cash disbursements made to settle short-term liabilities 
B) depreciation of general fixed assets 
C) decreases in fund balance for operating purposes but not for capital asset acquisitions 
D) decreases in fund balance for operating purposes,repayment of debt principal and interest,and capital asset acquisitions

Question 20

Accounting for a Special Revenue Fund is most like the accounting for which of the following?

Accepted Answer

A) the General Fund 
B) an Internal Service Fund 
C) a Pension Trust Fund 
D) an Enterprise Fund 
A) the General Fund 
B) an Internal Service Fund 
C) a Pension Trust Fund 
D) an Enterprise Fund

A county borrows cash on a short-term basis.Which of the following account could be credited in this transaction?

A city borrows $800,000 in January because it does not receive property taxes until May.It borrows on a tax anticipation note,which it will repay in May,when the taxes are collected.How would the city classify the note if it were to prepare financial statements on March 31?

Which line item does not properly appear in the Statement of Revenues,Expenditures,and Changes in Fund Balance (operating statement)of a governmental fund?

A favorable expenditures variance signifies that,during the year,

What is budgetary fund balance?

A local government always will have

Which of the following basis of accounting should be used when preparing a budgetary comparison schedule for a government's General Fund?

At year-end,a city's expenditures exceed its revenues.When the accounts are closed,which of the following entries will be made to record this fact?

Under the modified accrual basis of accounting

In governmental accounting,vouchers payable is most similar to which of the following accounts used by business enterprises?

What basis of accounting is used to recognize revenues in the General fund?

Liabilities in the General Fund and Special Revenue Fund represent:

Which line item would not properly appear in the closing entry of a governmental fund?

Which of the following could be reported in the balance sheet for a General Fund?

If the fund balance of a Special Revenue Fund has a debit balance at the end of the fiscal year,it means that

Expenditures of a city or county's governmental funds include

Accounting for a Special Revenue Fund is most like the accounting for which of the following?

Governmental and Not-For-Profit

The Use of Funds in Governmental Accounting

Budgetary Considerations in Governmental Accounting

The Governmental Fund Accounting Cycle

The Governmental Fund Accounting Cycle

The Governmental Accounting Cycle

The Governmental Fund Accounting Cycle--Fiduciary Funds

Reporting Principles and Preparation of Fund Financial Statements

Government-Wide Financial Statements

Federal Government Accounting and Reporting

Accounting for Not-For-Profit Organizations

Accounting for Health Care Organizations

Analysis of Financial Statements and Financial Condition

Fundamentals of Accounting

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Exam 4: The Governmental Fund Accounting Cycle

A county borrows cash on a short-term basis.Which of the following account could be credited in this transaction?

A city borrows $800,000 in January because it does not receive property taxes until May.It borrows on a tax anticipation note,which it will repay in May,when the taxes are collected.How would the city classify the note if it were to prepare financial statements on March 31?

Which line item does not properly appear in the Statement of Revenues,Expenditures,and Changes in Fund Balance (operating statement)of a governmental fund?

A favorable expenditures variance signifies that,during the year,

What is budgetary fund balance?

A local government always will have

Which of the following basis of accounting should be used when preparing a budgetary comparison schedule for a government's General Fund?

At year-end,a city's expenditures exceed its revenues.When the accounts are closed,which of the following entries will be made to record this fact?

Under the modified accrual basis of accounting

In governmental accounting,vouchers payable is most similar to which of the following accounts used by business enterprises?

What basis of accounting is used to recognize revenues in the General fund?

Liabilities in the General Fund and Special Revenue Fund represent:

Which line item would not properly appear in the closing entry of a governmental fund?

Which of the following could be reported in the balance sheet for a General Fund?

If the fund balance of a Special Revenue Fund has a debit balance at the end of the fiscal year,it means that

Expenditures of a city or county's governmental funds include

Accounting for a Special Revenue Fund is most like the accounting for which of the following?

Governmental and Not-For-Profit

The Use of Funds in Governmental Accounting

Budgetary Considerations in Governmental Accounting

The Governmental Fund Accounting Cycle

The Governmental Fund Accounting Cycle

The Governmental Accounting Cycle

The Governmental Fund Accounting Cycle--Fiduciary Funds

Reporting Principles and Preparation of Fund Financial Statements

Government-Wide Financial Statements

Federal Government Accounting and Reporting

Accounting for Not-For-Profit Organizations

Accounting for Health Care Organizations

Analysis of Financial Statements and Financial Condition

Fundamentals of Accounting

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