Question 1

The Encumbrances account is properly termed a:

Accepted Answer

A)   Long-term liability.
B)   Reservation of unassigned fund balance.
C)   Budgetary account.
D)   Current liability if paid within a year; otherwise, long-term debt.

Question 2

Extraordinary items and special items are reported on the government-wide statement of activities

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 3

An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.

Accepted Answer

A) True 
 B)False

Question 4

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 5

During July 2016,the first month of the 2017 fiscal year,the City of Jackson Hole issued the following purchase orders and contracts:
  Show the summary general journal entry to record the issuance of the purchase orders and contracts.You may ignore entries in the subsidiary ledger accounts.

Accepted Answer

The answer of During July 2016,the first month of the...

Question 6

The account "Interfund Transfers In" would be classified in a General Fund statement of revenues,expenditures,and changes in fund balance as a(an) :

Accepted Answer

A)   Revenue.
B)   Other financing use.
C)   Other financing source.
D)   Current liability.

Question 7

Which of the following neither increases nor decreases fund balance of the General Fund during the current period?

Accepted Answer

A)   Deferred inflows of resources.
B)   Revenues.
C)   Expenditures.
D)   Other financing sources.

Question 8

Encumbrance accounting is required in the accounting for payroll of governmental funds.

Accepted Answer

A) True 
 B)False

Question 9

When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order,the Encumbrance account is:

Accepted Answer

A)   Debited for the estimated price on the purchase order.
B)   Credited for the estimated price on the purchase order.
C)   Debited for the actual price for the supplies received.
D)   Credited for the actual price for the supplies received.

Question 10

Under the modified accrual basis of accounting,expenditures generally are not recognized until:

Accepted Answer

A)   They are paid in cash.
B)   An obligation is incurred that will be paid from currently available financial resources.
C)   Goods or services are ordered.
D)   They are approved by the legislative body.

Question 11

Which of the following is regarding other financing sources and other financing uses?

Accepted Answer

A)   Both must be reported separately from revenues and expenditures in the statement of revenues, expenditures, and changes in fund balances.
B)   These terms are used to distinguish program revenues or expenses from general revenues or expenses.
C)   These terms are used for minor revenue or expenditure items that are peripheral to the government's mission.
D)   Other financing sources are equivalent to gains and other financing uses are equivalent to losses.

Question 12

Three categories of program revenues are reported in the statement of activities: charges for services,operating grants and contributions,and capital grants and contributions.

Accepted Answer

A) True 
 B)False

Question 13

Indicate whether the following revenues should be classified as program revenues or general revenues on the government-wide statement of activities.

Accepted Answer

a.Unrestricted operating grants that can...

Question 14

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 15

Fund-based financial statements are intended to provide detailed financial information about the governmental,proprietary,and fiduciary activities of the primary government.

Accepted Answer

A) True 
 B)False

Question 16

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 17

How might a citizen become involved in the local government budgeting process?

Accepted Answer

The budgeting process within a governmen...

Question 18

Explain the difference between an expenditure and an expense.

Accepted Answer

An expense represents the use,or expirat...

Question 19

The revenue classifications recommended by GASB standards are listed below:
A.Taxes
B.Licenses and permits
C.Intergovernmental revenue
D.Charges for services
E.Fines and forfeits
F.Miscellaneous
For each revenue source listed below indicate its correct classification by placing the appropriate letter in the blank space next to the item.
____ 1.Capital grant received by a city from a state
____ 2.Property tax levied by city
____ 3.Library use fees
____ 4.Building permit
____ 5.Speeding ticket

Accepted Answer

The answer of The revenue classifications recommended by GASB standards...

Question 20

Define the term revenue and distinguish between revenue and other financing sources.

Accepted Answer

Revenue is defined as an increase in fun...

Exam 3: Governmental Operating Statement Accounts Budgetary Accounting

Encumbrance accounting is required in the accounting for payroll of governmental funds.

Correct Answer
verified

Explain the difference between an expenditure and an expense.

Correct Answer
verified
An expense represents the use,or expirat...
View Answer

Correct Answer
verified

Which of the following neither increases nor decreases fund balance of the General Fund during the current period?

Correct Answer
verified

Three categories of program revenues are reported in the statement of activities: charges for services,operating grants and contributions,and capital grants and contributions.

Correct Answer
verified

Indicate whether the following revenues should be classified as program revenues or general revenues on the government-wide statement of activities.

Correct Answer
verified
a.Unrestricted operating grants that can...
View Answer

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

Correct Answer
verified

How might a citizen become involved in the local government budgeting process?

Correct Answer
verified
The budgeting process within a governmen...
View Answer

Under the modified accrual basis of accounting,expenditures generally are not recognized until:

Correct Answer
verified

During July 2016,the first month of the 2017 fiscal year,the City of Jackson Hole issued the following purchase orders and contracts: Show the summary general journal entry to record the issuance of the purchase orders and contracts.You may ignore entries in the subsidiary ledger accounts.

Correct Answer
verified

When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order,the Encumbrance account is:

Correct Answer
verified

Fund-based financial statements are intended to provide detailed financial information about the governmental,proprietary,and fiduciary activities of the primary government.

Correct Answer
verified

Extraordinary items and special items are reported on the government-wide statement of activities

Correct Answer
verified

Define the term revenue and distinguish between revenue and other financing sources.

Correct Answer
verified
Revenue is defined as an increase in fun...
View Answer

The account "Interfund Transfers In" would be classified in a General Fund statement of revenues,expenditures,and changes in fund balance as a(an) :

Correct Answer
verified

The Encumbrances account is properly termed a:

Correct Answer
verified

The journal entry to record budgeted revenues will include:

Correct Answer
verified

An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.

Correct Answer
verified

Which of the following is regarding other financing sources and other financing uses?

Correct Answer
verified

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

Correct Answer
verified

Exam 3: Governmental Operating Statement Accounts Budgetary Accounting

Encumbrance accounting is required in the accounting for payroll of governmental funds.

Correct AnswerverifiedShow Answer

Explain the difference between an expenditure and an expense.

Correct AnswerverifiedAn expense represents the use,or expirat...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following neither increases nor decreases fund balance of the General Fund during the current period?

Correct AnswerverifiedShow Answer

Three categories of program revenues are reported in the statement of activities: charges for services,operating grants and contributions,and capital grants and contributions.

Correct AnswerverifiedShow Answer

Indicate whether the following revenues should be classified as program revenues or general revenues on the government-wide statement of activities.

Correct Answerverifieda.Unrestricted operating grants that can...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

How might a citizen become involved in the local government budgeting process?

Correct AnswerverifiedThe budgeting process within a governmen...View AnswerShow Answer

Under the modified accrual basis of accounting,expenditures generally are not recognized until:

Correct AnswerverifiedShow Answer

During July 2016,the first month of the 2017 fiscal year,the City of Jackson Hole issued the following purchase orders and contracts: Show the summary general journal entry to record the issuance of the purchase orders and contracts.You may ignore entries in the subsidiary ledger accounts.

Correct AnswerverifiedShow Answer

When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order,the Encumbrance account is:

Correct AnswerverifiedShow Answer

Fund-based financial statements are intended to provide detailed financial information about the governmental,proprietary,and fiduciary activities of the primary government.

Correct AnswerverifiedShow Answer

Extraordinary items and special items are reported on the government-wide statement of activities

Correct AnswerverifiedShow Answer

Define the term revenue and distinguish between revenue and other financing sources.

Correct AnswerverifiedRevenue is defined as an increase in fun...View AnswerShow Answer

The account "Interfund Transfers In" would be classified in a General Fund statement of revenues,expenditures,and changes in fund balance as a(an) :

Correct AnswerverifiedShow Answer

The Encumbrances account is properly termed a:

Correct AnswerverifiedShow Answer

The journal entry to record budgeted revenues will include:

Correct AnswerverifiedShow Answer

An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.

Correct AnswerverifiedShow Answer

Which of the following is regarding other financing sources and other financing uses?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
An expense represents the use,or expirat...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.Unrestricted operating grants that can...
View Answer

Correct Answer
verified

Correct Answer
verified
The budgeting process within a governmen...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Revenue is defined as an increase in fun...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified