Question 1

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

Question 2

Indicate which of the following use Modified Accrual Accounting?

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D

Question 3

Debt service expenditures for principal and interest are:

Accepted Answer

A)  Accrued. 
B)  Recorded when due but may be accrued at year end if debt service due date is less than 30 days after year end. 
C)  Recorded when due but may be accrued at year end if debt service due date is less than 60 days after year. 
D)  Reported in the government-wide statements only.

Question 4

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

Accepted Answer

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

Question 5

The fund balance represents the amount of resources in the fund.

Accepted Answer

A) True 
 B)False

Question 6

Under the purchases method to account for supplies inventory,the expenditures account is debited when the supplies are received and the inventory account is adjusted at year end if significant.

Accepted Answer

A) True 
 B)False

Question 7

Expenditures for claims and judgments,compensated absences,and special termination benefits should be recognized in the General Fund whether or not the liabilities are to be paid with available resources.

Accepted Answer

A) True 
 B)False

Question 8

$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 Revenue - Property Taxes. 
C)  A credit to Income Taxes Receivable. 
D)  A debit to Revenues Control.

Exam 4: Accounting for the General and Special Revenue Funds

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:

Indicate which of the following use Modified Accrual Accounting?

Debt service expenditures for principal and interest are:

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

The fund balance represents the amount of resources in the fund.

Under the purchases method to account for supplies inventory,the expenditures account is debited when the supplies are received and the inventory account is adjusted at year end if significant.

Expenditures for claims and judgments,compensated absences,and special termination benefits should be recognized in the General Fund whether or not the liabilities are to be paid with available resources.

$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: