Government Chapter 2 HW

If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end?

Encumbrances.

Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year?

Encumbrances.

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:

Appropriations minus the sum of expenditures and outstanding encumbrances.

Which of the following statements is true for other financing uses but is not true for expenditures?

Arise from interfund transfers out.

When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation?

All these answer options are correct. (Property owned by governments. Property exempted from taxation by the government. Property used by religious or charitable organizations.)

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

An allotment.

Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities?

Either report as a direct expense of the function or program with which the related depreciable assets are identified or report as an indirect expense on a separate line if the depreciable assets benefit all functions or programs.

Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of

Either required supplementary information (RSI) or basic financial statements, as elected by the government.

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

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

According to GASB standards, expenditures are classified by

Fund, function or program, organization unit, activity, character, and object.

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?

General Journal Debit Credit a. Estimated Revenues 1,100,000 Budgetary Fund Balance 100,000 Appropriations 1,000,000

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?

Increase.

Which of the following is correct concerning the presentation of the budgetary comparison schedule?

The Actual column is required to be presented using the government's budgetary basis of accounting.

Which of the following best identifies when an encumbrance is recorded?

When goods or services are ordered.

If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded?

b. Estimated Revenue 428,000 Budgetary Fund Balance 428,000