Select the best answer for each of the following multiple-choice questions.
1. In a governmental fund, which one of the following constitutes revenue?
a. Cash received from another fund of the same unit
b. Bond proceeds
c. Property taxes
d. Refund on an invoice for fuel
2. In a governmental fund, which of the following is considered expenditure?
a. The purchase of a capital asset
b. The consumption of supplies
c. Salaries earned by employees
d. All of the above
3. In the recording of a city’s budget, which one of the following accounts is debited?
b. Estimated Revenues
c. Estimated Other Financing Uses
4. Which of the following accounts of a governmental unit is usually credited when taxpayers are billed for property taxes?
b. Taxes Receivable —Current
c. Estimated Revenues
5. Fixed assets donated to a governmental unit should be recorded
a. At estimated fair value when received.
b. At the lower of donor’s carrying amount or estimated fair value when received.
c. At the donor’s carrying amount.
d. As a memorandum entry only.
6. The general long-term debt account group includes
a. All long-term debt of a governmental unit.
b. General long-term capital debt applicable to governmental funds.
c. Long-term capital debt and all long-term operating debt applicable to governmental funds.
d. all general long-term capital debt plus accrued interest thereon.
7. When equipment was purchased with general fund resources, an appropriate entry was made in the general fixed assets account group. What account would have been debited in the general fund?
a. Due from Other Funds
d. No entry should be made in the general fund.
8. Which of the following accounts should Cook City close at the end of its fiscal year?
a. Vouchers Payable
c. Fund Balance
d. Fund Balance —Assigned
9. Which of the following accounts of a governmental unit is debited when a purchase order is approved?
b. Vouchers Payable
c. Fund Balance —Assigned or Committed
10. Laster City recorded a 20-year building rental agreement as a capital lease. An asset for the building lease was recorded in the general fixed assets account group. Where the lease liability should be reported?
a. In the general long-term debt account group
b. In the debt service fund
c. In the general fund
d. A lease liability should not be reported.