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Exam 4: Accounting for the General and Special Revenue Funds

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Question 41

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The journal entry to record the budget of a Special Revenue Fund would include:

A) No entry; Special Revenue Funds do not record budgets
B) A debit to Estimated Revenues Control
C) A credit to Estimated Revenues Control
D) A debit to appropriations Control

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Question 42

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The General Fund accounts for any resources not reported in one of the other funds.

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Question 43

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In the General Fund, revenues are recognized when measurable and earned.

Which of the following is not likely to be recorded in a special revenue fund?

When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant, under GASB Statement 33?

Most interfund transfers are not eliminated in the government-wide statements.

The journal entry to record the re-establishment of encumbrances that were outstanding at the close of the prior period would include:

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

Which of the following statements is false with respect to modified accrual accounting?

Special revenue funds are used when it is desirable to provide separate reporting of resources that are assigned to expenditure for purposes other than debt service or capital projects.

Interfund transactions are of particular interest to financial statement preparers and users since failure to properly report these transactions will result in two funds being misstated.

If the government expects that a substantial portion of the resources supporting a special revenue fund's activities will no longer be derived from restricted and committed revenue sources, the government should discontinue the use of a special revenue fund and report the fund's remaining resources in the General Fund.

The following information was available for the General Fund of the City of Thomasville for the Year Ended December 31, 2017: a) Revenues for the year included property taxes in the amount of $6,612,000, fines and forfeits in the amount of $ 700,000, and miscellaneous in the amount of $400,000. b) Expenditures from current appropriations included: general government, $4,847,000; public safety, $1,884,000; culture and recreation, 812,000. c) In addition to b) above, expenditures related to prior year appropriations encumbered last year amounted to $40,000 public safety. Encumbrances issued this year but not filled amounted to $60,000 general government. d) A transfer was made from the General Fund to a debt service fund in the amount of $500,000. A transfer was made from an enterprise fund to the General Fund in the amount of $450,000. e) A sale of park land was made during the year, which was considered infrequent but not unusual and under the control of management. The proceeds amounted to $126,000, and the land had a basis of $90,000 reported in the government-wide Statement of Net Position the year before. f) Beginning balances included Fund Balance in the amount of $222,000. Required: Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund for the City of Thomasville for the Year Ended December 31, 2017.

Every general purpose government may have more than one General Fund.

When establishing funds, governments should attempt to minimize the number of special revenue and other funds, instead using functional classification to record transaction detail.

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:

Resources appropriately reported within proprietary or fiduciary funds are included in special revenue funds.

Expenditures are generally recorded and fund liabilities are recognized

Moving cash from the General Fund to a debt service fund for payment of debt service is an example of a an

Which of the following is true regarding modified accrual accounting?