Question 1

A statement of revenues,expenditures,and changes in fund balances-budget and actual is

Accepted Answer

A)   Required by GAAP for the General Fund,special revenue funds,and all other governmental fund types for which an annual budget has been adopted.
B)   Required by GAAP for internal management reports only; not permitted for external financial reporting.
C)   Required by GAAP for all governmental fund types.
D)   Optional under GAAP,as long as a budgetary comparison schedule is presented.

Question 2

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 position.
B)   Program revenues plus general revenues minus expenses equals change in net position.
C)   Program revenues minus expenses plus general revenues equals change in net position.
D)   Expenses minus program revenues plus general revenues equals change in net position.

Question 3

If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order,the department's available balance of appropriations for supplies will be

Accepted Answer

A)   Decreased.
B)   Increased.
C)   Unaffected.
D)   Either a or b,depending on the department's specific budgetary control procedures.

Question 4

When the budget of a government is adopted and Estimated Revenues exceed Appropriations,the excess is

Accepted Answer

A)   Credited to Budgetary Fund Balance.
B)   Debited to Budgetary Fund Balance.
C)   Debited to Encumbrances Outstanding.
D)   Credited to Encumbrances Outstanding.

Question 5

Which of the following is not a budgetary account?

Accepted Answer

A)   Encumbrances.
B)   Encumbrances Outstanding.
C)   Estimated Revenues.
D)   Appropriations.

Question 6

Other financing sources increase fund balance in the same manner as revenues.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

Extraordinary items and special items are reported

Accepted Answer

A)   With normal recurring general revenues.
B)   As separate line items in the Function/Programs section of the statement of activities.
C)   As separate line items below General Revenues in the statement of activities.
D)   As separate line items above General Revenues.

Question 10

The Expenditures control account of a government is debited when

Accepted Answer

A)   The budget is recorded.
B)   Supplies are ordered.
C)   Supplies previously encumbered are received.
D)   The invoice is paid.

Question 11

When the budget for the General Fund is recorded,the required journal entry will include

Accepted Answer

A)   A credit to Estimated Revenues.
B)   A debit to Encumbrances.
C)   A credit to Appropriations.
D)   A credit to Fund Balance.

Question 12

The journal entry to record budgeted revenues will include

Accepted Answer

A)   A debit to Estimated Revenues.
B)   A credit to Estimated Revenues.
C)   A debit to Revenues Receivable.
D)   Only a memorandum entry is necessary.

Question 13

All decreases in fund financial resources,other than for repayment of fund liabilities,are termed "expenditures."

Accepted Answer

A) True 
 B)False

Question 14

Depreciation expense for assets that essentially benefit all functions,such as the city hall,may be reported as a separate line item or on the same line as the General Government or similar function.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program or produce a net revenue?

Accepted Answer

A)   General revenues.
B)   Program revenues.
C)   Indirect revenues.
D)   Extraordinary items.

Question 16

Which of the following items would not appear in a statement of revenues,expenditures,and changes in fund balances prepared for a governmental fund?

Accepted Answer

A)   Depreciation expense.
B)   Interfund transfers in.
C)   Revenues from property taxes.
D)   Expenditures for employee salaries.

Question 17

All encumbrances must be closed at year-end.

Accepted Answer

A) True 
 B)False

Question 18

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 journal entry to record budgeted appropriations will include

Accepted Answer

A)   A credit to Appropriations,$2,900,000.
B)   A credit to Encumbrances,$2,900,000.
C)   A debit to Estimated Expenditures,$2,900,000.
D)   A credit to Budgetary Fund Balance,$2,900,000.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards.

Accepted Answer

A) True 
 B)False

Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

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

Correct Answer
verified

Extraordinary items and special items are reported

Correct Answer
verified

The journal entry to record budgeted revenues will include

Correct Answer
verified

All decreases in fund financial resources,other than for repayment of fund liabilities,are termed "expenditures."

Correct Answer
verified

Depreciation expense for assets that essentially benefit all functions,such as the city hall,may be reported as a separate line item or on the same line as the General Government or similar function.

Correct Answer
verified

If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order,the department's available balance of appropriations for supplies will be

Correct Answer
verified

Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program or produce a net revenue?

Correct Answer
verified

A statement of revenues,expenditures,and changes in fund balances-budget and actual is

Correct Answer
verified

Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards.

Correct Answer
verified

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

Correct Answer
verified

When the budget of a government is adopted and Estimated Revenues exceed Appropriations,the excess is

Correct Answer
verified

Which of the following is not a budgetary account?

Correct Answer
verified

Other financing sources increase fund balance in the same manner as revenues.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following items would not appear in a statement of revenues,expenditures,and changes in fund balances prepared for a governmental fund?

Correct Answer
verified

All encumbrances must be closed at year-end.

Correct Answer
verified

When the budget for the General Fund is recorded,the required journal entry will include

Correct Answer
verified

The Expenditures control account of a government is debited when

Correct Answer
verified

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

Correct Answer
verified

Exam 3: Governmental Operating Statement Accounts; Budgetary Accounting

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

Correct AnswerverifiedShow Answer

Extraordinary items and special items are reported

Correct AnswerverifiedShow Answer

The journal entry to record budgeted revenues will include

Correct AnswerverifiedShow Answer

All decreases in fund financial resources,other than for repayment of fund liabilities,are termed "expenditures."

Correct AnswerverifiedShow Answer

Depreciation expense for assets that essentially benefit all functions,such as the city hall,may be reported as a separate line item or on the same line as the General Government or similar function.

Correct AnswerverifiedShow Answer

If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order,the department's available balance of appropriations for supplies will be

Correct AnswerverifiedShow Answer

Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program or produce a net revenue?

Correct AnswerverifiedShow Answer

A statement of revenues,expenditures,and changes in fund balances-budget and actual is

Correct AnswerverifiedShow Answer

Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the budget of a government is adopted and Estimated Revenues exceed Appropriations,the excess is

Correct AnswerverifiedShow Answer

Which of the following is not a budgetary account?

Correct AnswerverifiedShow Answer

Other financing sources increase fund balance in the same manner as revenues.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following items would not appear in a statement of revenues,expenditures,and changes in fund balances prepared for a governmental fund?

Correct AnswerverifiedShow Answer

All encumbrances must be closed at year-end.

Correct AnswerverifiedShow Answer

When the budget for the General Fund is recorded,the required journal entry will include

Correct AnswerverifiedShow Answer

The Expenditures control account of a government is debited when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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