Multiple Choice Questions
Identify the best answer for each of the following:
1. Appropriation requests for the General Fund are commonly approved, controlled, accounted for, and reported in each of the following expenditure categories except:
a. Function or program.
b. Organizational unit.
d. Object of expenditure.
2. Which of the following statements would be true concerning budgetary integration?
a. The integration of budgetary accounts into the general ledger does not affect the asset and liability accounts.
b. Estimated revenue control accounts are often used to record actual revenues during the year.
c. Budgetary integration is the integration of both capital budget and operating budget data.
d. Budgetary integration affects the amount reported as assigned fund balance.
3. The budgetary basis of accounting is
a. Determined by a governmental entity’s governing body or by law or regulation.
b. Dictated by GAAP.
c. The same for all governmental entities.
d. Always the cash basis.
4. Which of the following GAAP requirements for budgetary reporting is true?
a. Original and final budget amounts are required for the General Fund only.
b. Original and final budget amounts are required for the General Fund and major Special Revenue Funds only.
c. Original and final budget variance amounts are required only for those funds that adopt an annual budget.
d. Final budget amounts only are required for all governmental and proprietary funds.
5. The following GAAP requirements for budgetary reporting are true except
a. Budgetary comparisons for the General Fund and major Special Revenue Funds must include expenditure data that is at least as detailed as the appropriations detail legally adopted in the budget.
b. Budgetary comparisons for the General Fund and major Special Revenue Funds must be Reported as required supplementary information (RSI).
c. The budgetary basis of accounting may be the cash basis.
d. Governmental entities may report required budgetary information as part of the basic financial statements.