Test
State & Local Govt - Budgetary Accounting
Preguntas del test (30)
1Extraordinary items and special items are reported
- AWith normal recurring general revenues.
- BAs separate line items in the Function/Programs section of the statement of activities.
- CAs separate line items below General Revenues in the statement of activities.
- DAs separate line items above General Revenues.
2The Estimated Revenues control account of a government is credited when
- AThe budgetary accounts are closed: Yes; Revenues are recorded: No
- BThe budgetary accounts are closed: No; Revenues are recorded: No
- CThe budgetary accounts are closed: No; Revenues are recorded: Yes
- DThe budgetary accounts are closed: Yes; Revenues are recorded: Yes
3A statement of revenues, expenditures, and changes in fund balances-budget and actual is
- ARequired by GAAP for the General Fund, special revenue funds, and all other governmental fund types for which an annual budget has been adopted.
- BRequired by GAAP for internal management reports only; not permitted for external financial reporting.
- CRequired by GAAP for all governmental fund types.
- DOptional under GAAP, as long as a budgetary comparison schedule is presented.
4The 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
- A A credit to Surplus Revenues, $300,000.
- BA debit to Estimated Excess Revenues, $300,000.
- CA credit to Budgetary Fund Balance, $300,000.
- DA memorandum entry only.
5Comparisons of budgeted versus actual revenues and expenditures are
- ARequired by GAAP for the General Fund and major special revenue funds for which an annual budget has been legally adopted.
- BRequired by GAAP for all governmental fund types.
- CRequired by generally accepted accounting principles (GAAP) for internal management reports only; not permitted for external financial reporting.
- DOptional under GASB standards for all funds.
6Under the modified accrual basis of accounting, expenditures generally are not recognized until
- AThey are paid in cash.
- BAn obligation is incurred that will be paid from currently available financial resources.
- CGoods or services are ordered.
- DThey are approved by the legislative body.
7When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to:
- AEncumbrances.
- BEquipment.
- CExpenditures.
- DAppropriations.
8 If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP)
- AThe actual amounts in the budgetary comparison schedule should be reported using the government's budgetary basis.
- BThe actual amounts in the budgetary comparison schedule should be reported on the GAAP basis.
- CBoth the budgeted and actual amounts in the budgetary comparison schedule prepared as part of the required supplementary information (RSI) should be reported on the GAAP basis; a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body.
- DOnly a budgetary comparison schedule prepared for the appropriate state oversight body is required.
9Which of the following statements is not a true statement about expenses that are directly related to a government function or program?
- AThey are reported in the government-wide statement of activities at the government-wide level.
- BThey include expenses that are specifically associated with a function or program.
- CThey include interest on general long-term liabilities.
- DThey include depreciation expense on capital assets that are clearly identified with a function or program.
10Fund balance may be classified as all of the following except
- ARestricted.
- BCommitted.
- CUncommitted.
- DAssigned.
11Which of the following describes the recommended format for the government-wide statement of activities?
- ARevenues minus expenses equals change in net position.
- BRevenues minus expenditures equals change in fund balances.
- CProgram expenses minus program revenues equals net (expense) revenue; net (expense) revenue plus general revenues, transfers, and net special and extraordinary items equals change in net position.
- DProgram revenues minus program expenses minus general revenues and net special and extraordinary items equals change in net position.
12Camden City receives occupancy taxes collected by all local hotels, motels, and inns. These revenues are restricted by state law for promotion of tourism. These tax revenues should be reported in the government-wide statement of activities as:
- AProgram revenue of the city's Culture and Recreation Department, which is assigned responsibility for promoting tourism.
- BGeneral revenue.
- CEither program revenue or general revenue, at the city's discretion.
- DNeither program revenue or general revenue. These revenues should be reported only in the special revenue fund.
13Depreciation expense on general capital assets may be reported on the government-wide statement of activities as:
- AA direct expense of a function or program.
- BAn indirect expense that can either be allocated to functions or programs on some appropriate basis, such as square footage of building use, or be reported on a separate line on the statement of activities.
- CEither direct expense of function/program, or indirect expense allocated to function/program or a separate line on statement of activities, as applicable.
- DDepreciation expense is not reported for general capital assets.
14A revenue or expense that is significant in amount, beyond control of management, and is both unusual in nature and infrequent in occurrence should be reported as a (an):
- AExtraordinary item.
- BSignificant item.
- CSpecial item.
- DUnusual/infrequent item.
15Under which basis of accounting is it appropriate to recognize expenditures rather than expenses?
- ACash.
- BModified cash.
- CAccrual.
- DModified accrual.
16Which of the following kinds of assets would be reported on the balance sheet for the General Fund or other governmental fund types?
- ATaxes receivable.
- BInventory of materials and supplies.
- CPrepaid items.
- DAll of the answers are correct.
17The Village of Wyclyffe levies its property taxes on November 1 each fiscal year. Taxes are due in two installments with due dates of December 1 of the current year and April 1 of the following year. Wyclyffe's fiscal year ends on December 31. To record a tax levy of $1,000,000, assuming all taxes will be collected when due, which account(s) will be credited as revenues of the current year in the General Fund and for what amounts?
- ARevenues, $1,000,000.
- BRevenues, $500,000; Deferred Revenues, $500,000.
- CDeferred Revenues, $1,000,000.
- DEither Revenues, $1,000,000 or Revenues, $500,000; Deferred Revenues, $500,000, provided the village follows consistent recognition policies.
18The expenditure classification "fuel and other vehicular supplies" is an example of which of the following types of classifications?
- AActivity.
- BCharacter.
- CObject.
- DFunction.
19Which of the following is an activity classification for expenditures?
- ATraffic patrol.
- BPersonal services.
- CPublic Works.
- DData Processing Department.
20Which of the following accounts is classified as an operating statement account rather than a budgetary account?
- AEncumbrances.
- BEstimated Other Financing Uses.
- CAppropriations.
- DExpenditures.
21An expenditure differs from an expense in which of the following ways?
- AAn expenditure is recognized when paid in cash; an expense is recognized when incurred.
- BAn expenditure is the estimated amount of a purchase; an expense is the actual amount.
- CAn expenditure is the cost to acquire a good or service; an expense is the cost of a good or service consumed during the period.
- DThere is no difference; an expenditure and an expense have the same meaning in governmental accounting.
22According to GASB standards, a budgetary comparison can be in the form of a:
- ABasic financial statement.
- BRequired supplementary information schedule.
- CNote disclosure.
- DBoth basic financial statement and required supplementary information schedule are correct.
23Fund balances of the General Fund at year-end represents the:
- ACitizens' equity—the amount that should be distributed to each citizen if the fund is liquidated.
- BArithmetic difference between total assets and total liabilities of the fund, assuming there are no deferred outflows or inflows or resources.
- CAmount expected to be expended during the following year.
- DAmount available in the fund for new spending.
24Which of the following inflows to a governmental fund would not be classified as revenue?
- AAn interfund transfer in.
- BCharges to park users for picnic pavilions.
- CA grant from a higher level of government.
- DBoth interfund transfer in and charges to park users for picnic pavilions would not be classified as revenue.
25Carthage City's budget for the next fiscal year requires that $1,200,000 of revenues be raised from property taxes. Its records indicate that an average 3 percent of taxes levied is never collected. To provide reasonable assurance that $1,200,000 of property tax revenues will be available for spending, the city's property tax levy (decimal amounts rounded to the next higher dollar) should be at least:
- A$1,237,114.
- B$1,200,000.
- C$1,164,000.
- DSome other amount.
26The balance of the Expenditures control account in a government's general ledger must equal:
- AThe sum of the balances of the Encumbrances and Appropriations accounts.
- BThe sum of the balances of the individual expenditure accounts in the Appropriations, Expenditures, and Encumbrances Subsidiary Ledger.
- CThe balance of the Estimated Revenues account and Revenues accounts.
- DThe difference between the balances of the Estimated Revenues and Budgetary Fund Balance accounts.
27In a city's Appropriations, Expenditures, and Encumbrances Ledger, Available Appropriations (or, alternatively, Available Balance) of a particular account is calculated as:
- AAppropriations minus expenditures.
- BAppropriations minus encumbrances.
- CThe sum of appropriations and encumbrances minus expenditures.
- DAppropriations minus the sum of encumbrances and expenditures.
28At any given date during the year, the balance of a revenue detail account in the revenue subsidiary ledger represents the:
- AAmount of estimated revenues recorded in the budget entry at the beginning of the year.
- BThe amount of revenues recognized from the beginning of the year to the given date.
- CThe difference between the amount of estimated revenues recorded in the budget entry and revenues recognized to date.
- DThe sum of the amount of estimated revenues recorded in the budget entry and revenues recognized to date.
29The Encumbrances account should be credited when:
- AA purchase order is placed for goods.
- BGoods are received.
- CVouchers for goods are approved for payment.
- DChecks are mailed.
30Which of the following is part of the minimum external financial reporting requirements for a tax-supported independent public school district?
- AManagement's discussion and analysis.
- BDistrict-wide financial statements.
- CFund financial statements.
- DAll of the answers are correct.
Información
- Descripción
- Chapter 3
- Autor
- turquoise_cat
- Idioma
- English
- Visitas
- 3.890
- Etiquetas
- Valoración
- 5,0 de 5 · 1 valoración Valora este test