FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Accounting for the General and Special Revenue Funds

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is true with respect to interfund loans?

A) Interfund loans are resources provided from one fund to another with the understanding that they do not have to repaid in the future.
B) The fund providing the resources records a transfer in and the fund receiving the resources records a transfer out.
C) Long-term loans use the terms Transfer to Other Funds and Transfer from Other Funds.
D) Interfund loan receivables and payables are separately reported on the balance sheets of the affected funds.

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following accounts of a governmental unit's General Fund is credited to close it at the end of the fiscal year?

A) Appropriations Control.
B) Other Financing Sources-Transfers In.
C) Budgetary Fund Balance -- Reserve for Encumbrances.
D) None of the above.

Correct Answer

verified

Show Answer

Question 73

True/False

Review LaterAdd Note

In special revenue funds, revenues are recognized when available and measurable.

The Revenues Control account of the General Fund is debited when:

Reciprocal interfund activity:

GASB requires both extraordinary and special items to be reported separately after other financing sources and uses in the General and Special Revenue fund financial statements

Expenditures for claims and judgments, compensated absences, and special termination benefits should be recognized in the General Fund whether or not the liabilities are to be paid with available resources.

What is the difference between an extraordinary and special item?

GASB standards provide particular guidance for the use of special revenue funds. Specifically, the standards require that special revenue funds be used only if a substantial portion of the resources are provided by one or more restricted, committed or assigned revenue sources.

Governmental fund financial statements are to be prepared on the accrual basis of accounting.

The city of Canandaigua receives proceeds from the sale of land, the transaction is considered to be a special item. Where are the proceeds reported on the Statement of Revenues, Expenditures and Changes in Fund Balance?

The City of Pine Cove levied property taxes for the fiscal year ended June 30, 2017, in the amount of $9,600,000. During the year ended June 30, 2017, $8,350,000 in property taxes was collected. It is estimated that $375,000 will be collected during the next 60 days, $695,000 will be collected after 60 days, and $180,000 will not be collected. What is the maximum amount Pine Cove can recognize as property tax revenue for the fiscal year ended June 30, 2017, in its Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances, assuming there were no unpaid property taxes at the end of the previous year?

The following items were included in the City of Wilson's General Fund expenditures for the year ended June 30, 2017: $\begin{array}{llcc} \text {Computer for City Clerk } & \$3,000\\\text { Maintenance on heating units for City Hall }&\$9,000\end{array}$ How much should be classified as capital assets in Wilson's General Fund balance sheet at June 30, 2017?

The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use to demonstrate compliance with those limitations.