Select the correct answer for each of the following items.
1. The primary focus in accounting and reporting for governmental funds is
a. Income determination.
b. Flow of financial resources.
c. Capital maintenance.
d. Transfers relating to proprietary activities.
2. The governmental fund measurement focus is the determination of

3. A Budgetary Fund Balance—Assigned for Encumbrances in excess of a balance of Encumbrances Control indicates
a. An excess of vouchers payable over encumbrances.
b. An excess of purchase orders over invoices received.
c. A recording error.
d. An excess of appropriations over encumbrances.
4. The Encumbrances Control account of a governmental unit is debited when
a. Goods are received.
b. A voucher payable is recorded.
c. A purchase order is approved.
d. The budget is recorded.
5. The following pertains to property taxes levied by Cedar City for the calendar year 20X6:
Expected collections during 20X6 ......... $500,000
Expected collections during the first 60 days of 20X7.. 100,000
Expected collections during the remainder of 20X7.... 60,000
Expected collections during January 20X8 ....... 30,000
Estimated to be uncollectible (3/1/X7 through 1/1/X8) ... 10,000
Total levy .................... $700,000
City Cedar should report revenues from property taxes for 20X6 of
a. $700,000.
b. $600,000.
c. $690,000.
d. $500,000.
6. Oak City issued a purchase order for supplies with an estimated cost of $5,000. When the supplies and accompanying invoice were received, the invoice indicated a $4,950 actual price. What amount should Oak City debit (credit) to Budgetary Fund Balance—Assigned for Encumbrances?
a. $5,000.
b. $(50).
c. $4,950.
d. $50.
7. For the budgetary year ending December 31, 20X6, Johnson City expects the following
inflows of resources in its general fund:
Property taxes, licenses, and fines $9,000,000
Transfer in from internal service fund 500,000
Transfer in from debt service fund 1,000,000
In the budgetary entry, what amount should Johnson City record for estimated revenues?
a. $9,000,000.
b. $9,500,000.
c. $10,500,000.
d. $10,000,000.
8. Encumbrances outstanding at year-end in a state’s general fund should be reported as a
a. Liability in the general fund.
b. Fund balance designation in the general fund.
c. Fund balance reserve in the general fund.
d. Liability in the general long-term debt account group.
9. Interperiod equity is an objective of financial reporting for governmental entities. According to the Governmental Accounting Standards Board, is interperiod equity fundamental to public administration? Is it a component of accountability?

10. Which of the following statements is correct regarding comparability of governmental financial reports?
a. Comparability is not relevant in governmental financial reporting.
b. Differences between financial reports should be due to substantive differences in underlying transactions or the governmental structure.
c. Selection of different alternatives in accounting procedures or practices account for the differences between financial reports.
d. Similarly designated governments perform the samefunctions.

  • CreatedMay 23, 2014
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