Question 1

When goods that have already been approved for purchase are received but have not yet been paid for, which of the following local government accounts should be increased?
 Encumbrances&ensp;&ensp;&ensp; Expenditures

Accepted Answer

A)   Yes&ensp;&ensp;&ensp;&ensp;&ensp;&ensp; &ensp;&ensp;&ensp;&ensp;&ensp;Yes
B)   Yes&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp; No
C)   No&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp; No
D)   No&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp;&ensp; Yes

Question 2

Which of the following budgetary entries would the town of Geneva make upon adoption of its Special Revenue Fund Budget for the year? Assume the following: Estimated Revenues $6,400,000
Appropriations 6,080,000

Accepted Answer

B

Question 3

Common functional categories of expenditures in governmental funds include all of the following except

Accepted Answer

A)   Public Safety.
B)   Health and Sanitation.
C)   Highways and Streets.
D)   Utilities.

Question 4

The presentation of a governmental fund budgetary comparison statement or schedule may be part of the

Accepted Answer

A)   Basic financial statements and include the General Fund and certain Special Revenue Funds.
B)   Basic financial statements and include the General Fund only.
C)   Required supplementary information and include all governmental funds with a legally adopted budget.
D)   Required supplementary information and include the General Fund only.

Question 5

As part of a government's basic financial statements and required supplementary information, a budgetary comparison schedule is required for which funds?

Accepted Answer

A)   All governmental funds.
B)   All governmental funds with legally adopted annual budgets.
C)   General Fund only.
D)   General Fund and each major Special Revenue Fund that has a legally adopted annual budget.

Question 6

Under an encumbrance system, which account is debited when a purchase order is issued?

Accepted Answer

A)   Expenditures.
B)   Appropriations.
C)   Encumbrances.
D)   Encumbrances Outstanding. C

Question 7

The Town of Red Herring issued $60,000 of purchase orders. Assume that when all orders were received, the actual cost was $59,000. How much would be recorded as expenditures when the goods are received?

Accepted Answer

A)   $60,000.
B)   $59,000.
C)   $1,000.
D)   $0.

Question 8

Which of the following does not represent a common approach to budgeting expenditures?

Accepted Answer

A)   Zero-base budgeting.
B)   Object-of-expenditure budgeting.
C)   Program budgeting.
D)   Marginal increase budgeting.

Question 9

The basis of accounting for a governmental fund budget should be?

Accepted Answer

A)   Cash basis.
B)   Accrual basis.
C)   Modified accrual basis.
D)   Determined by the entity's governing body or by law or regulation.

Question 10

The following information pertains to the Richardson County General Fund:   Appropriations $10,000,000 Estimated Revenues 12,000,000 Expenditures 12,800,000 Revenues 9,200,000 Long-term note issue proceeds 1,000,000 Short-term note principal retirements 250,000 Operating transfers to other funds 75,000\begin{array}{lr}	ext { Appropriations } & \$ 10,000,000 \	ext { Estimated Revenues } & 12,000,000 \	ext { Expenditures } & 12,800,000 \	ext { Revenues } & 9,200,000 \	ext { Long-term note issue proceeds } & 1,000,000 \	ext { Short-term note principal retirements } & 250,000 \	ext { Operating transfers to other funds } & 75,000\end{array} Appropriations  Estimated Revenues  Expenditures  Revenues  Long-term note issue proceeds  Short-term note principal retirements  Operating transfers to other funds ​$10,000,00012,000,00012,800,0009,200,0001,000,000250,00075,000​ 
The change in Richardson County's General Fund fund balance for the year is a

Accepted Answer

A)   $2,600,000 decrease.
B)   $2,675,000 decrease.
C)   $2,925,000 decrease.
D)   $3,600,000 decrease.

Question 11

A city's General Fund general ledger includes accounts called Estimated Revenues, Appropriations, and Encumbrances. This indicates that the city

Accepted Answer

A)   Formally integrates its budget into its accounts.
B)   Uses a cash plus encumbrances basis of accounting.
C)   Maintains its accounts on an accrual basis.
D)   Erroneously reports encumbrances as expenditures.

Question 12

A budgetary comparison schedule is required to include all of the following columns except

Accepted Answer

A)   The original budget.
B)   Actual on the GAAP basis.
C)   Final revised budget.
D)   Actual on the budgetary basis.

Question 13

The "Unencumbered Balance" in an expenditure subsidiary ledger represents

Accepted Answer

A)   Appropriations less expenditures.
B)   Appropriations less encumbrances.
C)   Appropriations less expenditures and encumbrances.
D)   Estimated revenues less appropriations.

Question 14

As part of the state and local government accounting and reporting model, a budgetary comparison statement or schedule for the General Fund should be presented as

Accepted Answer

A)   A basic financial statement or required supplementary information.
B)   In the other information section of the CAFR.
C)   A note to the financial statements.
D)   Budgetary reporting is optional for governments.

Question 15

The purpose of encumbrance accounting is to

Accepted Answer

A)   Manage a government's cash flows.
B)   Avoid expenditures exceeding appropriations.
C)   Replace expense accounting in governments.
D)   Prevent government waste. B

Question 16

What general ledger account is not needed for an expenditures subsidiary ledger?

Accepted Answer

A)   Appropriations.
B)   Expenditures.
C)   Encumbrances.
D)   Encumbrances Outstanding.

Question 17

If a government uses a Budgetary Fund Balance account, the account balance

Accepted Answer

A)   Will equal the difference between actual expenditures and appropriations at any point in time.
B)   Will be the planned increase or decrease in fund balance at any point in time.
C)   Will equal the difference between actual revenues and budgeted revenues at any point in time.
D)   Will equal the difference between actual revenues and actual expenditures and encumbrances for the year.

Question 18

When preparing a budgetary comparison statement for a General Fund, which column is optional?

Accepted Answer

A)   Final amended budget.
B)   Original budget.
C)   Variance comparing the final budget to the actual amounts on a budgetary basis.
D)   Actual amounts on a budgetary basis.

Question 19

During the year, Nathan Township amended their General Fund budget to reflect an increase in appropriations of $50,000 to be funded by an appropriation of existing fund balance. What would the necessary$\textbf{    budgetary entry    }$   be to reflect this amendment?

Accepted Answer

The answer of During the year, Nathan Township amended their...

Question 20

A general budget is often a term used to describe a budget for all of the following except

Accepted Answer

A)   A General Fund.
B)   A Special Revenue Fund.
C)   An Enterprise Fund.
D)   A Debt Service Fund.

Exam 3: Budgeting, Budgetary Accounting, and Budgetary Reporting

When goods that have already been approved for purchase are received but have not yet been paid for, which of the following local government accounts should be increased? Encumbrances Expenditures

Correct Answer
verified

Which of the following budgetary entries would the town of Geneva make upon adoption of its Special Revenue Fund Budget for the year? Assume the following: Estimated Revenues $6,400,000 Appropriations 6,080,000

Correct Answer
verified
B

Common functional categories of expenditures in governmental funds include all of the following except

Correct Answer
verified

The presentation of a governmental fund budgetary comparison statement or schedule may be part of the

Correct Answer
verified

As part of a government's basic financial statements and required supplementary information, a budgetary comparison schedule is required for which funds?

Correct Answer
verified

Under an encumbrance system, which account is debited when a purchase order is issued?

Correct Answer
verified
C

The Town of Red Herring issued $60,000 of purchase orders. Assume that when all orders were received, the actual cost was $59,000. How much would be recorded as expenditures when the goods are received?

Correct Answer
verified

Which of the following does not represent a common approach to budgeting expenditures?

Correct Answer
verified

The basis of accounting for a governmental fund budget should be?

Correct Answer
verified

Correct Answer
verified

A city's General Fund general ledger includes accounts called Estimated Revenues, Appropriations, and Encumbrances. This indicates that the city

Correct Answer
verified

A budgetary comparison schedule is required to include all of the following columns except

Correct Answer
verified

The "Unencumbered Balance" in an expenditure subsidiary ledger represents

Correct Answer
verified

As part of the state and local government accounting and reporting model, a budgetary comparison statement or schedule for the General Fund should be presented as

Correct Answer
verified

The purpose of encumbrance accounting is to

Correct Answer
verified
B

What general ledger account is not needed for an expenditures subsidiary ledger?

Correct Answer
verified

If a government uses a Budgetary Fund Balance account, the account balance

Correct Answer
verified

When preparing a budgetary comparison statement for a General Fund, which column is optional?

Correct Answer
verified

Correct Answer
verified

A general budget is often a term used to describe a budget for all of the following except

Correct Answer
verified

Exam 3: Budgeting, Budgetary Accounting, and Budgetary Reporting

When goods that have already been approved for purchase are received but have not yet been paid for, which of the following local government accounts should be increased? Encumbrances Expenditures

Correct AnswerverifiedShow Answer

Which of the following budgetary entries would the town of Geneva make upon adoption of its Special Revenue Fund Budget for the year? Assume the following: Estimated Revenues $6,400,000 Appropriations 6,080,000

Correct AnswerverifiedB

Common functional categories of expenditures in governmental funds include all of the following except

Correct AnswerverifiedShow Answer

The presentation of a governmental fund budgetary comparison statement or schedule may be part of the

Correct AnswerverifiedShow Answer

As part of a government's basic financial statements and required supplementary information, a budgetary comparison schedule is required for which funds?

Correct AnswerverifiedShow Answer

Under an encumbrance system, which account is debited when a purchase order is issued?

Correct AnswerverifiedC

The Town of Red Herring issued $60,000 of purchase orders. Assume that when all orders were received, the actual cost was $59,000. How much would be recorded as expenditures when the goods are received?

Correct AnswerverifiedShow Answer

Which of the following does not represent a common approach to budgeting expenditures?

Correct AnswerverifiedShow Answer

The basis of accounting for a governmental fund budget should be?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A city's General Fund general ledger includes accounts called Estimated Revenues, Appropriations, and Encumbrances. This indicates that the city

Correct AnswerverifiedShow Answer

A budgetary comparison schedule is required to include all of the following columns except

Correct AnswerverifiedShow Answer

The "Unencumbered Balance" in an expenditure subsidiary ledger represents

Correct AnswerverifiedShow Answer

As part of the state and local government accounting and reporting model, a budgetary comparison statement or schedule for the General Fund should be presented as

Correct AnswerverifiedShow Answer

The purpose of encumbrance accounting is to

Correct AnswerverifiedB

What general ledger account is not needed for an expenditures subsidiary ledger?

Correct AnswerverifiedShow Answer

If a government uses a Budgetary Fund Balance account, the account balance

Correct AnswerverifiedShow Answer

When preparing a budgetary comparison statement for a General Fund, which column is optional?

Correct AnswerverifiedShow Answer

During the year, Nathan Township amended their General Fund budget to reflect an increase in appropriations of $50,000 to be funded by an appropriation of existing fund balance. What would the necessary budgetary entry \textbf{ budgetary entry } budgetary entry be to reflect this amendment?

Correct AnswerverifiedShow Answer

A general budget is often a term used to describe a budget for all of the following except

Correct AnswerverifiedShow Answer

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B

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C

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B

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