Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

Which of the following is an interfund transaction?

Accepted Answer

A)  Interfund services provided and used 
B)  Interfund transfers 
C)  Interfund loans 
D)  All of the above are interfund transactions 
A)  Interfund services provided and used 
B)  Interfund transfers 
C)  Interfund loans 
D)  All of the above are interfund transactions

Question 4

Interfund services provided and used are recognized as direct Increases and Decreases in Fund Balance

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Budgetary Fund Balance - Reserved for Encumbrances. 
B)  Appropriations Control. 
C)  Other Financing Sources - Transfer Out. 
D)  Fund Balance. 
A)  Budgetary Fund Balance - Reserved for Encumbrances. 
B)  Appropriations Control. 
C)  Other Financing Sources - Transfer Out. 
D)  Fund Balance.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

When a special revenue fund accounts for grants that are awarded on a reimbursement basis, revenues are recognized only after qualified expenditures have been recognized.

Accepted Answer

A) True 
 B)False

Question 8

A December 2017 year-end government should record which of the following as expenditures:

Accepted Answer

A)  Salaries Payable due January 20, 2017. 
B)  Bond Payable that matures January 30, 2017. 
C)  Bond Payable that matures February 14, 2017. 
D)  Both A & B. 
A)  Salaries Payable due January 20, 2017. 
B)  Bond Payable that matures January 30, 2017. 
C)  Bond Payable that matures February 14, 2017. 
D)  Both A & B.

Question 9

Which of the following is true regarding the use of Special Revenue Funds?

Accepted Answer

A)  Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes. 
B)  Special Revenue Funds are appropriate if the sole source of resources are assigned funds 
C)  Special Revenue Funds may only be used when a substantial portion of the resources are provided by restricted or committed revenue sources. 
D)  Once a Special Revenue Fund is established, it will continue to be a Special Revenue Fund until all resources are exhausted. 
A)  Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes. 
B)  Special Revenue Funds are appropriate if the sole source of resources are assigned funds 
C)  Special Revenue Funds may only be used when a substantial portion of the resources are provided by restricted or committed revenue sources. 
D)  Once a Special Revenue Fund is established, it will continue to be a Special Revenue Fund until all resources are exhausted.

Question 10

A Special Revenue Fund may not have a positive Unassigned Fund Balance.

Accepted Answer

A) True 
 B)False

Question 11

Governmental fund financial statements are prepared using the current financial resource measurement focus.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following occurs when uncollectible delinquent taxes are written off? Ignore interest and penalties

Accepted Answer

A)  Delinquent Tax Receivable is increased. 
B)  Accounts receivable goes down and the Estimated Uncollectible Taxes Account is increased. 
C)  Net receivables remain unchanged. 
D)  Uncollectible Delinquent Tax Expense is increased. 
A)  Delinquent Tax Receivable is increased. 
B)  Accounts receivable goes down and the Estimated Uncollectible Taxes Account is increased. 
C)  Net receivables remain unchanged. 
D)  Uncollectible Delinquent Tax Expense is increased.

Question 13

When delinquent taxes are written off:

Accepted Answer

A)  Fund balance will decrease 
B)  Expenditures will increase 
C)  Taxes receivable will be unaffected. 
D)  Fund balance will be unaffected 
A)  Fund balance will decrease 
B)  Expenditures will increase 
C)  Taxes receivable will be unaffected. 
D)  Fund balance will be unaffected

Question 14

The asset, equipment, used by a department accounted for by the General Fund of a governmental unit should be reported in the:

Accepted Answer

A)  Government-wide statements. 
B)  General Fund. 
C)  Both a and b. 
D)  None of the above. 
A)  Government-wide statements. 
B)  General Fund. 
C)  Both a and b. 
D)  None of the above.

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  Recognized as an expenditure. 
B)  Recognized as a reduction of revenue. 
C)  Not recognized. 
D)  None of the above. 
A)  Recognized as an expenditure. 
B)  Recognized as a reduction of revenue. 
C)  Not recognized. 
D)  None of the above.

Question 18

The expenditures account equals the amount of supplies purchased during a period under which of the following inventory methods?

Accepted Answer

A)  Perpetual. 
B)  Purchases. 
C)  Periodic. 
D)  Consumption. 
A)  Perpetual. 
B)  Purchases. 
C)  Periodic. 
D)  Consumption.

Question 19

The entry to re-establish encumbrances related to purchase orders from the prior year would include:

Accepted Answer

A)  A debit to Budgetary Fund Balance - Reserved for Encumbrances. 
B)  A debit to Encumbrances Control. 
C)  A credit to Accounts Payable 
D)  None of the above. 
A)  A debit to Budgetary Fund Balance - Reserved for Encumbrances. 
B)  A debit to Encumbrances Control. 
C)  A credit to Accounts Payable 
D)  None of the above.

Question 20

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.

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

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

Which of the following is an interfund transaction?

Interfund services provided and used are recognized as direct Increases and Decreases in Fund Balance

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

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

When a special revenue fund accounts for grants that are awarded on a reimbursement basis, revenues are recognized only after qualified expenditures have been recognized.

A December 2017 year-end government should record which of the following as expenditures:

Which of the following is true regarding the use of Special Revenue Funds?

A Special Revenue Fund may not have a positive Unassigned Fund Balance.

Governmental fund financial statements are prepared using the current financial resource measurement focus.

Which of the following occurs when uncollectible delinquent taxes are written off? Ignore interest and penalties

When delinquent taxes are written off:

The asset, equipment, used by a department accounted for by the General Fund of a governmental unit should be reported in the:

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.

Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.

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

The expenditures account equals the amount of supplies purchased during a period under which of the following inventory methods?

The entry to re-establish encumbrances related to purchase orders from the prior year would include:

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

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, Interfund Transactions

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

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

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

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

Which of the following is an interfund transaction?

Interfund services provided and used are recognized as direct Increases and Decreases in Fund Balance

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

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

When a special revenue fund accounts for grants that are awarded on a reimbursement basis, revenues are recognized only after qualified expenditures have been recognized.

A December 2017 year-end government should record which of the following as expenditures:

Which of the following is true regarding the use of Special Revenue Funds?

A Special Revenue Fund may not have a positive Unassigned Fund Balance.

Governmental fund financial statements are prepared using the current financial resource measurement focus.

Which of the following occurs when uncollectible delinquent taxes are written off? Ignore interest and penalties

When delinquent taxes are written off:

The asset, equipment, used by a department accounted for by the General Fund of a governmental unit should be reported in the:

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.

Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.

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

The expenditures account equals the amount of supplies purchased during a period under which of the following inventory methods?

The entry to re-establish encumbrances related to purchase orders from the prior year would include:

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

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, Interfund Transactions

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters