Chapter 3 - Multiple Choice

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

Which of the following statements is true other financing sources but is not true for revenues? a. Arise from the sale of capital assets. b. Increase fund balances when they are closed at year-end. c. Temporary accounts closed at fiscal year-end. d. Have normal credit balances

a. Arise from the sale of capital assets.

Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000. Which of the following is the correct journal entry to record the budget? Table Summary: a. Estimated Revenues Dr. 1,100,000 Budgetary Fund Balance Cr. 100,000 Appropriations Cr. 1,000,000 b. Appropriations Dr. 1,100,000 Budgetary Fund Balance Cr. 100,000 Estimated Revenues Cr. 1,000,000 c. Appropriations Dr. 1,000,000 Fund Balance Dr. 100,000 Revenues Cr. 1,100,000 d. Memorandum Entry Only

a. Estimated Revenues Dr. 1,100,000 Budgetary Fund Balance Cr. 100,000 Appropriations Cr. 1,000,000

If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? a. Appropriations b. Encumbrances c. Fund Balance d. Estimated Other Financing Sources

b. Encumbrances

Which of the following is correct concerning the presentation of the budgetary comparison schedule? a. A Final Budget column is optional b. The Actual column is presented using the government's budgetary basis of accounting c. The Variance column is required d. The budgetary comparison schedule is prepared for all governmental funds

b. The Actual column is presented using the government's budgetary basis of accounting

Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. This type of budgetary control is achieved by reviewing a. Appropriations minus expenditures. b. Appropriations plus expenditures minus outstanding encumbrances. c. Appropriations minus the sum of expenditures and outstanding encumbrances. d. Appropriations minus estimated revenues.

c. Appropriations minus the sum of expenditures and outstanding encumbrances.

If the city projects a $428,000 decrease in the sales tax revenues originally budgeted, how would the change in the projection be recorded? Table Summary: a. Not recorded because it is a projection and not yet known. Estimated Revenue b. Estimated Revenue Dr. 428,000 Budgetary Fund Balance Cr. 428,000 c. Budgetary Fund Balance Dr. 428,000 Estimated Revenue Cr. 428,000 d. Revenue Dr. $428,000 Fund Balance Cr. $428,000

c. Budgetary Fund Balance Dr. 428,000 Estimated Revenue Cr. 428,000

Which of the following is an example of classification by object of expense? a. Personnel unit. b. Economic development. c. Debt service. d. Parking enforcement.

c. Debt service.

Which of the following accounts neither increases nor decreases the fund balances reported on the governmental fund balance sheet for the fiscal year? a. Expenditures. b. Revenues. c. Encumbrances. d. Other financing sources

c. Encumbrances.

Which of the following best describes the recommended format for the government-wide statement of activities? a. Revenues minus expenses equals change in net position. b. Revenues minus expenditures plus (minus) other financing sources (uses) equals change in net position. c. Expenses minus program revenues equals net (expense) revenue. Net (expense) revenue plus general revenues equals change in net position. d. Expenses minus program revenues minus general revenues plus (minus) extraordinary and special items equals changes in net position.

c. Expenses minus program revenues equals net (expense) revenue. Net (expense) revenue plus general revenues equals change in net position.

When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? a. Property owned by governments. b. Property exempted from taxation by the government. c. Property used by religious or charitable organizations. d. All of the above.

d. All of the above.

An internal allocation of funds on a periodic basis, which is often used to regulate the use of appropriations over a budgetary period, is called a. An encumbrance b. A budgetary levy c. An ad valorem assessment. d. An allotment.

d. An allotment.

Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of a. Required supplementary information (RSI). b. Basic financial statements. c. Note disclosures. d. Either a or b, as elected by the government.

d. Either a or b, as elected by the government.

Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? a. Report as a general expense in the bottom section of the statement of activities. b. Report as a direct expense of the function or program with which the related depreciable assets are identified. c. Report as an indirect expense on a separate line if the depreciable assets benefit all functions or programs. d. Either b or c.

d. Either b or c.

Supplies ordered by the Public Works function of the General Fund were received at an actual price that was less than the estimated price listed on the purchase order. What effect will this have on Public Work's appropriations available balance? a. Increase b. Decrease c. No effect d. Insufficient information to determine the effect

d. Insufficient information to determine the effect

Which of the following best identifies when an encumbrance is recorded? a. When goods or services are received. b. When an obligation is incurred that will be paid from current financial resources. c. When legislative authority has been granted to spend resources. d. When goods or services are ordered.

d. When goods or services are ordered.


Set pelajaran terkait

Chapter 7 Production and Growth - Macro

View Set

Chapter 2: Global E-business and collaboration

View Set

CHAPTER 1: INTRODUCTION AND HOW CARS WORK

View Set