Question

Multiple Choice Questions
Identify the best answer to each question.
1. A city levies property taxes of $500,000 for its General Fund for a year and expects to collect all except the estimated uncollectible amount of $5,500 by year end. To reflect this information, the city should record General Fund revenues of
a. $500,000 and General Fund expenses of $5,500.
b. $500,000 and General Fund expenditures of $5,500.
c. $500,000 and no General Fund expenses or expenditures.
d. $494,500 and no General Fund expenses or expenditures.

2. At year end a school district purchases instructional equipment costing $100,000 by issuing a short-term note to be repaid from General Fund resources. This transaction should be reflected in the General Fund as
a. Expenditures of $100,000 and a $100,000 liability.
b. Expenditures of $100,000 and a $100,000 other financing source from the issuance of the note.
c. A capital asset of $100,000 and a liability of $100,000.
d. Expenditures of $100,000 and revenues of $100,000 from issuance of the note.

3. A state borrowed $10,000,000 on a nine-month, 9% note payable to provide temporary financing for the General Fund. At year end, the note has been outstanding for six months. The state should report General Fund interest expenditures and interest payable on the short-term note in its financial statements of
a. $0; the interest will be recognized when it matures.
b. $450,000.
c. $450,000 unless the state does not expect to be able to pay the interest when it matures.
d. $675,000.

4. Charges for services rendered by a county’s General Fund departments totaled $500,000, of which $5,500 is expected to be uncollectible. The county expects to collect $494,500 by year-end. To reflect this information, the county should record General Fund revenues of
a. $500,000 and General Fund expenses of $5,500.
b. $500,000 and General Fund expenditures of $5,500.
c. $500,000 and no General Fund expenses or expenditures.
d. $494,500 and no General Fund expenses or expenditures.

5. If the Warren County General Fund has a long-term receivable from another county fund (and the use of the proceeds when collected is not restricted, committed, or assigned), the receivable will be reported as
a. An advance from other funds with an equivalent amount of nonspendable fund balance.
b. An advance to other funds with an equivalent amount of nonspendable fund balance.
c. An advance to other funds and will be used in computing unassigned fund balance.
d. Due from other funds with an equivalent amount of committed fund balance.

6. In the Statement of Revenues, Expenditures, and Changes in Fund Balances, transfers must be reported
a. In a separate section immediately following revenues.
b. In a section immediately following the excess of revenues over (under) expenditures.
c. Either a or b is permissible.
d. Immediately following the beginning fund balance.

7. The minimum expenditure classifications required in the basic financial statements for governmental funds are
a. fund and function or program.
b. fund, character, and function or program.
c. fund, character, and department.
d. fund, character, department, and line item.



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  • CreatedOctober 25, 2014
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