Question 1

The Expenditures control account in the General Fund is debited when:

Accepted Answer

A)   Equipment previously ordered is received.
B)   The budget is recorded.
C)   The books are closed at the end of the year.
D)   Supplies are ordered.E) B) and C)
F) A) and C)

Question 2

Under modified accrual accounting,revenues are recognized when measurable and:

Accepted Answer

A)   Earned.
B)   Available.
C)   Collected.
D)   Expenditures have been made.E) A) and D)
F) All of the above

Question 3

Which of the following statements is not correct?

Accepted Answer

A)   Transactions between funds of the same government may not be assumed to be arms' length in nature.
B)   Most interfund transactions are eliminated in the government-wide statements
C)   Interfund reimbursements are classified as other financing sources or uses
D)   Interfund transfers are classified as other financing sources or usesE) A) and C)
F) None of the above

Question 4

Under which fund type would you debit expenditure when land is acquired?

Accepted Answer

A)   Governmental
B)   Proprietary.
C)   Both of the above.
D)   None of the above.E) A) and D)
F) A) and C)

Question 5

What would be the effect on the General Fund's Fund Balance at the end of the current fiscal year of recording the purchase of a $15,000 new computer with a five year estimated useful life and zero salvage?

Accepted Answer

A)   Reduce the General Fund's Fund Balance $ 3,000.
B)   Reduce the General Fund's Fund Balance $15,000.
C)   Reduce the General Fund's Fund Balance $18,000.
D)   Have no effect on the General Fund's Fund Balance.E) All of the above
F) B) and D)

Question 6

Which of the following is true regarding modified accrual accounting?

Accepted Answer

A)   Revenues are recognized when measurable and available to finance expenditures of the current period.
B)   Expenditures are generally recognized as the related goods or services are received.
C)   Both (a)  and (b)  above.
D)   None of the above.E) None of the above
F) A) and D)

Question 7

The General Fund of the City of Lexington approved a tax levy for the calendar year 2014 in the amount of $2,000,000.Of that amount,$30,000 is expected to be uncollectible.During 2014,$1,750,000 was collected.During 2015,$100,000 was collected during the first 30 days,$70,000 was collected during days 31-60,and $50,000 was collected during the days 61-90.During the postaudit,you discovered that the City showed $2,000,000 in revenues.How much revenue should the City recognize in 2014 from this tax levy?

Accepted Answer

A)   $ 2,000,000
B)   $ 1,970,000
C)   $ 1,920,000
D)   $ 1,750,000E) A) and C)
F) None of the above

Question 8

The General Fund of the City of Bangor purchased water from its Water Utility Fund in the amount of $20,000.The General Fund would debit:

Accepted Answer

A)   Expenditures Control.
B)   Other Financing Uses-Transfers Out.
C)   Water Expense.
D)   None of the above; no entries would be made.E) All of the above
F) C) and D)

Question 9

Which of the following is false with respect to Special revenue funds?

Accepted Answer

A)   Resources appropriately reported within proprietary or fiduciary funds are excluded from special revenue funds.
B)   A special revenue funds would be used to account for taxes which are required by state law to be used by the government to support specific activities.
C)   Special revenue funds may be used for any designated purpose to segregate revenues and ensure compliance with restrictions.
D)   None of the aboveE) All of the above
F) B) and D)

Question 10

Moving cash from the General Fund to a debt service fund for payment of debt service is an example of a (an)

Accepted Answer

A)   Interfund transfer.
B)   Interfund loan.
C)   Interfund reimbursement.
D)   Quasi-external transaction.E) A) and B)
F) A) and C)

Question 11

The city of Canandaigua receives proceeds from the sale of land,the transaction is considered to be a special item.The proceeds are:

Accepted Answer

A)   Reported as a revenue.
B)   Reported separately after other financing sources and uses.
C)   Reported as an item that changes the Fund Balance.
D)   Not recorded but the gain on the sale is.E) B) and D)
F) B) and C)

Question 12

When closing out the General Fund and Special Revenue Funds of a state or local governmental unit,the balance of the operating statement accounts and the balances of the budgetary accounts are closed to:

Accepted Answer

A)   Budgetary Fund Balance - Reserved for Encumbrances.
B)   Fund Balance.
C)   Other Financing Sources - Transfer Out.
D)   Appropriations Control.E) All of the above
F) A) and B)

Question 13

Most interfund transfers are eliminated in the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 14

What is the difference between an extraordinary and special item?

Accepted Answer

Extraordinary items are significant tran...

Question 15

Which of the following occurs when uncollectible delinquent taxes are written off? (Ignore interest and penalties)

Accepted Answer

A)   Net receivables remain unchanged.
B)   Accounts receivable goes down and the Estimated Uncollectible Taxes Account is increased.
C)   Delinquent Tax Receivable is increased.
D)   Uncollectible Delinquent Tax Expense is increased.E) B) and C)
F) C) and D)

Question 16

Under the consumption method to account for supplies inventory,an asset is recorded when inventories are acquired,and the Expenditure is recorded when the supplies are consumed.

Accepted Answer

A) True 
 B)False

Question 17

When a special revenue fund accounts for grants that are awarded on a reimbursement basis,revenues are recognized only after qualified expenditures have been recognized.

Accepted Answer

A) True 
 B)False

Question 18

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

Accepted Answer

A)   Tax anticipation notes.
B)   Inter-fund loans.
C)   Other financing sources.
D)   Appropriation loan.E) B) and C)
F) A) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A transfer should be reported in the operating statement of the General Fund as a(an) :

Accepted Answer

A)   Revenue or Expenditure.
B)   Due from or Due to Other Funds.
C)   Other Financing Source or Use.
D)   None of the above, it is a direct increase or decrease to fund balance.E) B) and C)
F) A) and B)

Exam 4: Accounting for the General and Special Revenue Funds

Which of the following statements is not correct?

Correct Answer
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The city of Canandaigua receives proceeds from the sale of land,the transaction is considered to be a special item.The proceeds are:

Correct Answer
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Which of the following is false with respect to Special revenue funds?

Correct Answer
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When closing out the General Fund and Special Revenue Funds of a state or local governmental unit,the balance of the operating statement accounts and the balances of the budgetary accounts are closed to:

Correct Answer
verified

When a special revenue fund accounts for grants that are awarded on a reimbursement basis,revenues are recognized only after qualified expenditures have been recognized.

Correct Answer
verified

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

Correct Answer
verified

Under modified accrual accounting,revenues are recognized when measurable and:

Correct Answer
verified

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

Correct Answer
verified

What would be the effect on the General Fund's Fund Balance at the end of the current fiscal year of recording the purchase of a $15,000 new computer with a five year estimated useful life and zero salvage?

Correct Answer
verified

A transfer should be reported in the operating statement of the General Fund as a(an) :

Correct Answer
verified

Moving cash from the General Fund to a debt service fund for payment of debt service is an example of a (an)

Correct Answer
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What is the difference between an extraordinary and special item?

Correct Answer
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Extraordinary items are significant tran...
View Answer

Which of the following is true regarding modified accrual accounting?

Correct Answer
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The General Fund of the City of Bangor purchased water from its Water Utility Fund in the amount of $20,000.The General Fund would debit:

Correct Answer
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The Expenditures control account in the General Fund is debited when:

Correct Answer
verified

Most interfund transfers are eliminated in the government-wide statements.

Correct Answer
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Under which fund type would you debit expenditure when land is acquired?

Correct Answer
verified

Under the consumption method to account for supplies inventory,an asset is recorded when inventories are acquired,and the Expenditure is recorded when the supplies are consumed.

Correct Answer
verified

Which of the following occurs when uncollectible delinquent taxes are written off? (Ignore interest and penalties)

Correct Answer
verified

Correct Answer
verified

Exam 4: Accounting for the General and Special Revenue Funds

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

The city of Canandaigua receives proceeds from the sale of land,the transaction is considered to be a special item.The proceeds are:

Correct AnswerverifiedShow Answer

Which of the following is false with respect to Special revenue funds?

Correct AnswerverifiedShow Answer

When closing out the General Fund and Special Revenue Funds of a state or local governmental unit,the balance of the operating statement accounts and the balances of the budgetary accounts are closed to:

Correct AnswerverifiedShow Answer

When a special revenue fund accounts for grants that are awarded on a reimbursement basis,revenues are recognized only after qualified expenditures have been recognized.

Correct AnswerverifiedShow Answer

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

Correct AnswerverifiedShow Answer

Under modified accrual accounting,revenues are recognized when measurable and:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What would be the effect on the General Fund's Fund Balance at the end of the current fiscal year of recording the purchase of a $15,000 new computer with a five year estimated useful life and zero salvage?

Correct AnswerverifiedShow Answer

A transfer should be reported in the operating statement of the General Fund as a(an) :

Correct AnswerverifiedShow Answer

Moving cash from the General Fund to a debt service fund for payment of debt service is an example of a (an)

Correct AnswerverifiedShow Answer

What is the difference between an extraordinary and special item?

Correct AnswerverifiedExtraordinary items are significant tran...View AnswerShow Answer

Which of the following is true regarding modified accrual accounting?

Correct AnswerverifiedShow Answer

The General Fund of the City of Bangor purchased water from its Water Utility Fund in the amount of $20,000.The General Fund would debit:

Correct AnswerverifiedShow Answer

The Expenditures control account in the General Fund is debited when:

Correct AnswerverifiedShow Answer

Most interfund transfers are eliminated in the government-wide statements.

Correct AnswerverifiedShow Answer

Under which fund type would you debit expenditure when land is acquired?

Correct AnswerverifiedShow Answer

Under the consumption method to account for supplies inventory,an asset is recorded when inventories are acquired,and the Expenditure is recorded when the supplies are consumed.

Correct AnswerverifiedShow Answer

Which of the following occurs when uncollectible delinquent taxes are written off? (Ignore interest and penalties)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Extraordinary items are significant tran...
View Answer

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