Question 1

The fund classification system used by public schools follows the GASB standards.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would always be classified as a general revenue?

Accepted Answer

A)   Grant proceeds.
B)   Special assessment charges for snow removal.
C)   Library fines.
D)   Fuel taxes earmarked for maintenance of roads and bridges.

Question 3

The Encumbrances account is properly termed a

Accepted Answer

A)   Long-term liability.
B)   Reservation of unassigned fund balance.
C)   Budgetary account.
D)   Current liability if paid within a year; otherwise, long-term debt.

Question 4

When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to:

Accepted Answer

A)   Encumbrances.
B)   Equipment.
C)   Expenditures.
D)   Appropriations.

Question 5

Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level?

Accepted Answer

A)   General program revenues.
B)   Charges for services.
C)   Operating grants and contributions.
D)   Capital grants and contributions.

Question 6

The Fort Worth city council approved and adopted its fiscal year budget. The budget for the General Fund contained the following amounts:
  
When the General Fund budget for the fiscal year is recorded, indicate whether each of the following accounts should be debited (D), credited (C), or is not affected (N).
________ 1. Estimated revenues
________ 2. Budgetary Fund balance
________ 3. Appropriations
________ 4. Estimated other financing uses
________ 5. Expenditures

Accepted Answer

1. D
2. C...

Question 7

The process by which a legal valuation is placed on taxable property is called:

Accepted Answer

A)   An appropriation.
B)   A property tax levy.
C)   Property assessment.
D)   Ad valorem determination.

Question 8

If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP) :

Accepted Answer

A)   The actual amounts in the budgetary comparison schedule should be reported using the government's budgetary basis.
B)   The actual amounts in the budgetary comparison schedule should be reported on the GAAP basis.
C)   Both the budgeted and actual amounts in the budgetary comparison schedule should be reported on the GAAP basis; a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body.
D)   Only a budgetary comparison schedule prepared for the appropriate state oversight body is required.

Question 9

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?            
A-          
B-              &nbsp
C-            
D-

Accepted Answer

A)   Choice A.
B)   Choice B.
C)   Choice C.
D)   Choice D.

Question 10

Encumbrance accounting is required in the accounting for payroll of governmental funds.

Accepted Answer

A) True 
 B)False

Question 11

When equipment that is to be used by the General Fund is received, how should it be recorded?

Accepted Answer

A)   Capital Asset.
B)   Appropriation.
C)   Encumbrances.
D)   Expenditure.

Question 12

The expenditure classification "Current Expenditures" is an example of which of the following types of classifications?

Accepted Answer

A)   Activity.
B)   Character.
C)   Function.
D)   Object.

Question 13

One characteristic that distinguishes other financing sources from revenues is that other financing sources:

Accepted Answer

A)   Arise from debt issuances or interfund transfers in.
B)   Increase fund balances when they are closed at year-end.
C)   Provide financial resources for the recipient fund.
D)   Have a normal credit balance.

Question 14

Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?

Accepted Answer

A)   Enterprise fund.
B)   Special revenue fund.
C)   Investment trust fund.
D)   Pension trust fund.

Question 15

When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is:

Accepted Answer

A)   Credited to Budgetary Fund Balance.
B)   Debited to Budgetary Fund Balance.
C)   Debited to Encumbrances Outstanding.
D)   Credited to Encumbrances Outstanding.

Question 16

Explain the difference between an expenditure and an expense.

Accepted Answer

An expense represents the use, or expira...

Question 17

The account "Interfund Transfers In" would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a(an) :

Accepted Answer

A)   Revenue.
B)   Other financing use.
C)   Other financing source.
D)   Current liability.

Question 18

Extraordinary items and special items are reported on the government-wide statement of activities.

Accepted Answer

A)   With normal recurring general revenues.
B)   As separate line items in the Function/Programs section of the statement of activities.
C)   As separate line items below General Revenues in the statement of activities.
D)   As separate line items above General Revenues.

Question 19

Contributions to permanent funds are shown on a separate line below the general revenues on the government-wide statement of activities.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would not appear on a governmental fund balance sheet?

Accepted Answer

A)   Accounts receivable.
B)   Inventory.
C)   Vouchers payable.
D)   Bonds payable.

Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

When equipment that is to be used by the General Fund is received, how should it be recorded?

Correct Answer
verified

Which of the following would not appear on a governmental fund balance sheet?

Correct Answer
verified

The Encumbrances account is properly termed a

Correct Answer
verified

Encumbrance accounting is required in the accounting for payroll of governmental funds.

Correct Answer
verified

Extraordinary items and special items are reported on the government-wide statement of activities.

Correct Answer
verified

When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is:

Correct Answer
verified

Contributions to permanent funds are shown on a separate line below the general revenues on the government-wide statement of activities.

Correct Answer
verified

When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to:

Correct Answer
verified

Correct Answer
verified
1. D
2. C...
View Answer

One characteristic that distinguishes other financing sources from revenues is that other financing sources:

Correct Answer
verified

Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?

Correct Answer
verified

The expenditure classification "Current Expenditures" is an example of which of the following types of classifications?

Correct Answer
verified

The fund classification system used by public schools follows the GASB standards.

Correct Answer
verified

Explain the difference between an expenditure and an expense.

Correct Answer
verified
An expense represents the use, or expira...
View Answer

If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP) :

Correct Answer
verified

Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level?

Correct Answer
verified

The account "Interfund Transfers In" would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a(an) :

Correct Answer
verified

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available? A- B- C- D-

Correct Answer
verified

Which of the following would always be classified as a general revenue?

Correct Answer
verified

The process by which a legal valuation is placed on taxable property is called:

Correct Answer
verified

Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

When equipment that is to be used by the General Fund is received, how should it be recorded?

Correct AnswerverifiedShow Answer

Which of the following would not appear on a governmental fund balance sheet?

Correct AnswerverifiedShow Answer

The Encumbrances account is properly termed a

Correct AnswerverifiedShow Answer

Encumbrance accounting is required in the accounting for payroll of governmental funds.

Correct AnswerverifiedShow Answer

Extraordinary items and special items are reported on the government-wide statement of activities.

Correct AnswerverifiedShow Answer

When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is:

Correct AnswerverifiedShow Answer

Contributions to permanent funds are shown on a separate line below the general revenues on the government-wide statement of activities.

Correct AnswerverifiedShow Answer

When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to:

Correct AnswerverifiedShow Answer

Correct Answerverified1. D 2. C...View AnswerShow Answer

One characteristic that distinguishes other financing sources from revenues is that other financing sources:

Correct AnswerverifiedShow Answer

Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?

Correct AnswerverifiedShow Answer

The expenditure classification "Current Expenditures" is an example of which of the following types of classifications?

Correct AnswerverifiedShow Answer

The fund classification system used by public schools follows the GASB standards.

Correct AnswerverifiedShow Answer

Explain the difference between an expenditure and an expense.

Correct AnswerverifiedAn expense represents the use, or expira...View AnswerShow Answer

If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP) :

Correct AnswerverifiedShow Answer

Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level?

Correct AnswerverifiedShow Answer

The account "Interfund Transfers In" would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a(an) :

Correct AnswerverifiedShow Answer

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available? A- B- C- D-

Correct AnswerverifiedShow Answer

Which of the following would always be classified as a general revenue?

Correct AnswerverifiedShow Answer

The process by which a legal valuation is placed on taxable property is called:

Correct AnswerverifiedShow Answer

Correct Answer
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1. D
2. C...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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An expense represents the use, or expira...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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