Question 1

Indicate which of the following use Modified Accrual Accounting?

Accepted Answer

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

Question 2

$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.

Question 3

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 4

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 5

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 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

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.

Exam 4: Accounting for the General and Special Revenue Funds

$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:

Correct Answer
verified

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.

Correct Answer
verified

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.

Correct Answer
verified

Indicate which of the following use Modified Accrual Accounting?

Correct Answer
verified

Debt service expenditures for principal and interest are:

Correct Answer
verified

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:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 4: Accounting for the General and Special Revenue Funds

$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:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Indicate which of the following use Modified Accrual Accounting?

Correct AnswerverifiedShow Answer

Debt service expenditures for principal and interest are:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

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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Correct Answer
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