Quiz
State & Local Govt - Operating Activities
Perguntas do quiz (25)
1A General Fund balance sheet differs from a government-wide statement of net position in that:
- AA General Fund balance sheet reports only current assets and liabilities; a government-wide statement of net position reports current and noncurrent assets as well as current and noncurrent liabilities.
- BA General Fund balance sheet reports material amounts of inventories of supplies; a government-wide statement of net position does not report inventories of supplies.
- CA General Fund balance sheet reports fund balances as restricted or unrestricted; a government-wide statement of net position segregates amounts of net position as net investment in capital assets, restricted, and unrestricted.
- DAll of the answers are correct.
2The net position section of the government-wide statement of net position reports the three categories:
- ARestricted, committed, and unrestricted.
- BNet investment in capital assets, restricted, designated, and unassigned.
- CNet investment in capital assets, restricted, and unrestricted.
- DRestricted, designated, and nondesignated.
3The dual-track approach to governmental accounting used in this text is most useful because:
- AIt parallels the approach used by most governments that have adopted GASB'S reporting model.
- BIt is the only way that a government can meet the requirements of GASB'S reporting model.
- CMost governments do not possess the computer capabilities to classify and aggregate accounting information in the ways required to prepare both governmental and fund financial statements.
- DIt helps the student learn the different ways in which accounting transactions and events affect the government-wide and fund financial statements, as well as providing a manual accounting system that aids in preparing both kinds of statements.
4Which of the following is properly reported as a liability of the General Fund?
- AGeneral Obligation Bonds Payable.
- BVouchers Payable.
- CCapital Lease Obligations.
- DAll of the answers are correct.
5When the annual budget is recorded, the legislative authorization to expend resources is:
- ACredited to Appropriations.
- BDebited to Expenditures.
- CCredited to Expenditures.
- DDebited to Appropriations.
6The Parks and Recreation Department ordered equipment estimated to cost $5,200 and an encumbrance was recorded in that amount. When the equipment was received at an actual cost of $5,100, the required General Fund journal entry should include:
- AA debit to Expenditures in the amount of $5,200.
- BA debit to Appropriations in the amount of $5,100.
- CA credit to Encumbrances in the amount of $5,200.
- DA debit to Encumbrances in the amount of $5,100.
7Which of the following would be recorded as a program revenue in the governmental activities journal?
- AProperty taxes.
- BMotor fuel taxes.
- CSales taxes.
- DNone of the other answers are correct.
8Which of the following represents the typical sequence of expenditure-related transactions?
- AAppropriation, Encumbrance, Disbursement, Expenditure.
- BAppropriation, Encumbrance, Expenditure, Disbursement.
- CEncumbrance, Appropriation, Expenditure, Disbursement.
- DEncumbrance, Appropriation, Disbursement, Expenditure.
9Stone Township's nonexempt taxable property has assessed valuation of $500,000,000. For the current fiscal year, Stone Township's Council has set a property tax rate of $4 per $100 of assessed valuation. For the past 10 years, property tax collections have averaged 96 percent of taxes levied. Based on this information, the journal entry in Stone Township's General Fund to record its tax levy will include a:
- ADebit to Taxes Receivable—Current in the amount of $19,200,000.
- BDebit to Taxes Receivable—Current in the amount of $20,000,000.
- CCredit to Revenues in the amount of $19,200,000.
- DBoth Debit to Taxes Receivable—Current in the amount of $20,000,000, and Credit to Revenues in the amount of $19,200,000.
10On June 30, the end of the City of Dalton's current fiscal year, uncollected property taxes of $900,000 became delinquent. The related estimated uncollectible account balance on these taxes was $90,000. On the same date, penalties on the delinquent taxes were assessed in the amount of $45,000. The city estimated that 10 percent of the penalties would not be collected. The journal entry in the General Fund to record the reclassification of current taxes to delinquent status will include a:
- ADebit to Estimated Uncollectible Current Taxes for $90,000.
- BDebit to Estimated Uncollectible Delinquent Taxes for $90,000.
- CCredit to Deferred Revenues for $900,000.
- DCredit to Revenues for $45,000.
11On June 30, the end of the City of Dalton's current fiscal year, uncollected property taxes of $900,000 became delinquent. The related estimated uncollectible account balance on these taxes was $90,000. On the same date, penalties on the delinquent taxes were assessed in the amount of $45,000. The city estimated that 10 percent of the penalties would not be collected. The journal entry in the General Fund to record the penalties on delinquent taxes will include a:
- ADebit to Estimated Uncollectible Delinquent Taxes for $90,000.
- BCredit to Deferred Revenues for $900,000.
- CCredit to Revenues for $40,500.
- DDebit to Interest and Penalties Receivable for $90,000.
12Late in its fiscal year, a federal agency approved Hilton Village's application for a $400,000 operating grant to provide recreational activities for at-risk youth. The program will begin in the following fiscal year. The grant provides for reimbursement of expenditures for services to eligible recipients rendered during the following fiscal year. On the notification date, the village's journal entry in the General Fund should include a:
- ADebit to Due from Federal Government.
- BCredit to Deferred Revenues.
- CBoth Debit to Due from Federal Government and Credit to Deferred Revenues are correct.
- DNo entry should be made until all eligibility requirements have been met.
13The governing body of the City of Taunton approved additional appropriations of $3,000 to cover unexpected overtime costs of the fire department. Approval of the additional appropriations will require a:
- ADebit to Encumbrances.
- BDebit to Appropriations.
- CDebit to Budgetary Fund Balance.
- DDebit to Supplemental Appropriations.
14The General Fund received $100,000 in lieu of taxes from the city owned water utility, an enterprise fund. This amount approximates the value of services provided to the utility by departments accounted for by the General Fund. This is an example of a (an):
- AInterfund transfer.
- BInterfund loan.
- CInternal exchange transaction for interfund services provided and used.
- DReimbursement.
15The General Fund recorded a liability to the city owned electric utility (an enterprise fund of the city) for electric power used during the prior month. The journal entry for the General Fund will include:
- AA debit to Expenditures.
- BA debit to Interfund Transfers Out.
- CA debit to Encumbrances.
- DNone of the other answers are correct.
16An interfund transfer out should be reported in a governmental fund operating statement as a (an):
- ADue to other funds.
- BOther financing use.
- CExpenditure.
- DChange in fund balance.
17On July 1, the first day of its fiscal year, Claret City levied a $2,000,000 property tax which is payable in full on December 1 of the same year. On September 15, the city decided to borrow $100,000 in 90-day, 5 percent tax anticipation notes to cover operating expenditures until the tax revenues are collected. The journal entry in the General Fund on September 15 to record the issuance of tax anticipation notes will include:
- AA credit to Other Financing Sources—Proceeds of Tax Anticipation Notes.
- BA credit to Tax Anticipation Revenue.
- CA credit to Tax Anticipation Notes Payable.
- DEither a credit to Tax Anticipation Revenue or a credit to Tax Anticipation Notes Payable is acceptable if consistently applied.
18The Revenues account of a state or local government is debited when:
- AProperty taxes are recorded.
- BProperty taxes are collected.
- CThe budget is recorded at the beginning of the year.
- DThe account is closed at the end of the year.
19The City of Ashland uses a periodic inventory system in which the amount of inventory at year-end is unknown until a physical count is completed. The town uses the purchases method of accounting for its inventory of consumable supplies in the General Fund. Assume that the inventory of supplies reported on the General Fund balance sheet at the end of the previous fiscal year, December 31, 2013, was $44,000 and a physical count as of December 31, 2014, reveals that the inventory is only $40,000. During the year, the town records all purchases of supplies as debits to Expenditures. The adjusting journal entry in the General Fund at December 31, 2014, will include a:
- ADebit to Fund Balance--Unassigned in the amount of $4,000.
- BCredit to Expenditures—2014 in the amount of $4,000.
- CCredit to Inventory of Supplies in the amount of $4,000.
- DCredit to Inventory of Supplies in the amount of $44,000.
20During January 2014 General Fund supplies ordered in the previous fiscal year and encumbered at an estimated amount of $1,000 were received at an actual cost of $1,100. The entry to record this transaction will require a debit to:
- AExpenditures—2014 in the amount of $1,100.
- BExpenditures—2014 in the amount of $100.
- CExpenditures—2013 in the amount of $1,100.
- DEncumbrances—2013 in the amount of 1,000.
21Which of the following is a correct statement regarding the schedule of revenues, expenditures, and changes in fund balance—budget and actual prepared for the General Fund?
- ABoth the original and final budgeted amounts must be reported.
- BActual amounts should be reported using the budgetary basis.
- COnly expenditures charged to the current period appropriations should be reported in this schedule.
- DAll of the answers are correct.
22Permanent funds differ from endowed private-purpose trust funds in that:
- APermanent funds use the modified accrual basis of accounting.
- BThey consist of donated amounts for which the principal must be preserved (i.e., endowments) and only the earnings thereon can be used for the specified purpose of the trust.
- CTheir investments in stock and in bonds maturing more than one year from receipt must be reported at fair value as of the balance sheet date.
- DAll of the answers are correct.
23The Town of Waynesville received a gift of $500,000 that is to be invested by the town and the earnings thereon are to be used for maintenance of the Waynesville Community Cemetery. The town has determined that a permanent fund will be established to account for this gift. The journal entry in the permanent fund to record receipt of the cash gift will include a:
- ACredit to Revenues—Contributions for Endowment.
- BCredit to Net position—Restricted for Endowment.
- CCredit to Fund Balance—Nonspendable—Principal of Permanent Fund.
- DAny of these is appropriate, if applied consistently.
24In which class of nonexchange transactions are revenues recognized when the underlying exchange has occurred?
- AImposed nonexchange revenues.
- BDerived tax revenues.
- CVoluntary nonexchange transactions.
- DGovernment-mandated nonexchange transactions.
25Which of the following is a correct statement regarding interim financial reporting for state and local governments?
- AInterim financial reporting to bondholders and other creditors is required on a quarterly basis.
- BCurrently, interim financial reporting is not required to parties outside the government.
- CAt a minimum, interim financial information, such as actual and budgeted revenues and expenditures for the year to date, should be prepared for use by internal managers on a quarterly, monthly, weekly, or other periodic basis, as needed.
- DBoth not required to parties outside the government and should be prepared for use by internal managers on a quarterly, monthly, weekly or other periodic basis, as needed.
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- Descrição
- Chapter 4
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- turquoise_cat
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- English
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