Question 1

Which of the following accounts of a government is credited when a purchase order is approved?

Accepted Answer

A)  Encumbrances.
B)  Reserve for Encumbrances.
C)  Vouchers Payable.
D)  Appropriations.

Question 2

Define the term expenditure and distinguish between that term and each of the following terms:
1)Expense
2)Disbursement
3)Encumbrance
4)Other financing use

Accepted Answer

Expenditures are defined by the GASB as ...

Question 3

When equipment that is to be used by an activity accounted for by the General Fund of a government is received,it should be recorded in the General Fund as a(an)

Accepted Answer

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

Question 4

When the budget of a government is recorded and Appropriations exceeds Estimated Revenues,the Budgetary Fund Balance account is

Accepted Answer

A)  Credited at the beginning of the year and debited at the end of the year.
B)  Credited at the beginning of the year and no entry is made at the end of the year.
C)  Debited at the beginning of the year and no entry is made at the end of the year.
D)  Debited at the beginning of the year and credited at the end of the year.

Question 5

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 prepared as part of the required supplementary information (RSI) 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 6

Which of the following best describes the recommended format for the government-wide statement of activities?

Accepted Answer

A)  Program revenues minus expenses minus other revenues and expenses equals change in net assets.
B)  Program revenues plus general revenues minus expenses equals change in net assets.
C)  Program revenues minus expenses plus general revenues equals change in net assets.
D)  Expenses minus program revenues plus general revenues equals change in net assets.

Question 7

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 8

Financial information for governmental funds must be reported on the economic resources measurement focus.

Accepted Answer

A) True 
 B)False

Question 9

For what funds do budgetary comparisons need to be presented in connection with the basic financial statements?

Accepted Answer

A)  General Fund.
B)  General Fund and all major funds.
C)  All governmental funds with legally adopted annual budgets.
D)  General Fund and major special revenue funds for which a budget is legally adopted.

Question 10

Define the term revenue and distinguish between that term and other financing sources.

Accepted Answer

Revenue is defined as increases in fund ...

Question 11

Which of the following statements is true regarding the required disclosure of budgetary information?

Accepted Answer

A)  All budgetary disclosures should be presented in the notes to the financial statements.
B)  There is one specific format for presenting the budgetary comparison statement.
C)  Budgetary comparisons are required supplementary information (RSI) .
D)  The budgetary reconciliation must focus on the operating statement,but not the statement of position.

Question 12

The revenue classifications recommended by GASB standards are listed below:
A.Taxes
B.Licenses and permits
C.Intergovernmental revenue
D.Charges for services
E.Fines and forfeits
.Miscellaneous
For each revenue source listed below indicate its correct classification by placing the appropriate letter in the blank space next to the item.____ 1.Capital grant received by a city from a state
____ 2.Property tax levied by city
____ 3.Library use fees
____ 4.Occupational licenses
____ 5.Loitering fine

Accepted Answer

The answer of The revenue classifications recommended by GASB standards...

Question 13

The Estimated Revenues control account of a government is credited when

Accepted Answer

A)  The budgetary accounts are closed: Yes; Revenues are recorded: No
B)  The budgetary accounts are closed: No; Revenues are recorded: No
C)  The budgetary accounts are closed: No; Revenues are recorded: Yes
D)  The budgetary accounts are closed: Yes; Revenues are recorded: Yes

Question 14

The County Commission of Benton County adopted its General Fund budget for the year ending June 30,comprising estimated revenues of $3,200,000 and appropriations of $2,900,000.Benton County utilizes the budgetary accounts required by GASB standards.The budgeted excess of estimated revenues over appropriations will be recorded as

Accepted Answer

A)  A credit to Surplus Revenues,$300,000.
B)  A debit to Estimated Excess Revenues,$300,000.
C)  A credit to Budgetary Fund Balance,$300,000.
D)  A memorandum entry only.

Question 15

The expenditure classification "City Attorney" is an example of which of the following types of classification?

Accepted Answer

A)  Function.
B)  Organization unit.
C)  Character.
D)  Program.

Question 16

Budgetary accounts used in the General Fund include Estimated Revenues,Estimated Other Financing Sources,Appropriations,Estimated Other Financing Uses,and Encumbrances.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following fund types is most likely to have a legally adopted annual budget?

Accepted Answer

A)  Permanent fund.
B)  General Fund.
C)  Pension trust fund.
D)  Capital projects fund.

Question 18

"Available appropriation" is calculated as the difference between appropriations and the sum of expenditures and encumbrances.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The Reserve for Encumbrances account is properly termed a

Accepted Answer

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

Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

For what funds do budgetary comparisons need to be presented in connection with the basic financial statements?

Correct Answer
verified

Which of the following best describes the recommended format for the government-wide statement of activities?

Correct Answer
verified

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

When the budget of a government is recorded and Appropriations exceeds Estimated Revenues,the Budgetary Fund Balance account is

Correct Answer
verified

"Available appropriation" is calculated as the difference between appropriations and the sum of expenditures and encumbrances.

Correct Answer
verified

The expenditure classification "City Attorney" is an example of which of the following types of classification?

Correct Answer
verified

Define the term expenditure and distinguish between that term and each of the following terms: 1)Expense 2)Disbursement 3)Encumbrance 4)Other financing use

Correct Answer
verified
Expenditures are defined by the GASB as ...
View Answer

Define the term revenue and distinguish between that term and other financing sources.

Correct Answer
verified
Revenue is defined as increases in fund ...
View Answer

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

Correct Answer
verified

Correct Answer
verified

Which of the following fund types is most likely to have a legally adopted annual budget?

Correct Answer
verified

When equipment that is to be used by an activity accounted for by the General Fund of a government is received,it should be recorded in the General Fund as a(an)

Correct Answer
verified

The Reserve for Encumbrances account is properly termed a

Correct Answer
verified

Financial information for governmental funds must be reported on the economic resources measurement focus.

Correct Answer
verified

Which of the following accounts of a government is credited when a purchase order is approved?

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

Correct Answer
verified

Which of the following statements is true regarding the required disclosure of budgetary information?

Correct Answer
verified

Budgetary accounts used in the General Fund include Estimated Revenues,Estimated Other Financing Sources,Appropriations,Estimated Other Financing Uses,and Encumbrances.

Correct Answer
verified

The Estimated Revenues control account of a government is credited when

Correct Answer
verified

Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

For what funds do budgetary comparisons need to be presented in connection with the basic financial statements?

Correct AnswerverifiedShow Answer

Which of the following best describes the recommended format for the government-wide statement of activities?

Correct AnswerverifiedShow 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

When the budget of a government is recorded and Appropriations exceeds Estimated Revenues,the Budgetary Fund Balance account is

Correct AnswerverifiedShow Answer

"Available appropriation" is calculated as the difference between appropriations and the sum of expenditures and encumbrances.

Correct AnswerverifiedShow Answer

The expenditure classification "City Attorney" is an example of which of the following types of classification?

Correct AnswerverifiedShow Answer

Define the term expenditure and distinguish between that term and each of the following terms: 1)Expense 2)Disbursement 3)Encumbrance 4)Other financing use

Correct AnswerverifiedExpenditures are defined by the GASB as ...View AnswerShow Answer

Define the term revenue and distinguish between that term and other financing sources.

Correct AnswerverifiedRevenue is defined as increases in fund ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following fund types is most likely to have a legally adopted annual budget?

Correct AnswerverifiedShow Answer

When equipment that is to be used by an activity accounted for by the General Fund of a government is received,it should be recorded in the General Fund as a(an)

Correct AnswerverifiedShow Answer

The Reserve for Encumbrances account is properly termed a

Correct AnswerverifiedShow Answer

Financial information for governmental funds must be reported on the economic resources measurement focus.

Correct AnswerverifiedShow Answer

Which of the following accounts of a government is credited when a purchase order is approved?

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

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding the required disclosure of budgetary information?

Correct AnswerverifiedShow Answer

Budgetary accounts used in the General Fund include Estimated Revenues,Estimated Other Financing Sources,Appropriations,Estimated Other Financing Uses,and Encumbrances.

Correct AnswerverifiedShow Answer

The Estimated Revenues control account of a government is credited when

Correct AnswerverifiedShow Answer

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Expenditures are defined by the GASB as ...
View Answer

Correct Answer
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Revenue is defined as increases in fund ...
View Answer

Correct Answer
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Correct Answer
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