Select the correct completion of each of the following items. 1. Which of the following steps in
Question:
1. Which of the following steps in the acquisition of goods and services occurs first?
a. Appropriation.
b. Encumbrance.
c. Budget.
d. Expenditure.
2. What account is used to earmark the fund balance to recognize the contingent obligations of goods ordered but not yet received?
a. Appropriations.
b. Encumbrances.
c. Obligations.
d. Fund BalanceAssigned for Encumbrances.
3. When a governmental units Estimated Revenues Control account is closed out at the end of the fiscal year, the excess of estimated revenues over estimated appropriations is
a. Debited to Fund BalanceUnassigned.
b. Debited to Fund BalanceAssigned for Encumbrances.
c. Debited to Budgetary Fund BalanceUnassigned.
d. Credited to Fund BalanceAssigned for Encumbrances.
4. Carson Citys general fund issued purchase orders of $630,000 to vendors for supplies. Which of the following entries should the city make to record this transaction?
5. The following balances are included in the subsidiary records of Dogwoods Parks and Recreation Department on March 31, 20X2:
AppropriationsSupplies .... $7,500
ExpendituresSupplies..... 4,500
EncumbrancesSupply Orders.. 750
How much does the department have available to purchase additional supplies?
a. $0.
b. $2,250.
c. $3,000.
d. $6,750.
6. The board of commissioners of the City of Elgin adopted its budget for the year ending July 31, 20X2, which indicated revenue of $1,000,000 and appropriations of $900,000. If the budget is formally integrated into the accounting records, what is the required journal entry?
7. Which of the following accounts of a governmental unit is credited when the budget is recorded?
a. Encumbrances.
b. Budgetary Fund BalanceAssigned for Encumbrances.
c. Estimated Revenue Control.
d. Appropriations Control.
8. Which of the following accounts of a governmental unit is debited when supplies previously ordered are received?
a. Encumbrances.
b. Budgetary Fund BalanceAssigned for Encumbrances.
c. Vouchers Payable.
d. Appropriations Control.
9. Which of the following situations will increase a governmental units fund balance at the fiscal year-end?
a. Appropriations are less than expenditures and budgetary fund balance assigned for
encumbrances.
b. Appropriations are less than expenditures and encumbrances.
c. Appropriations are more than expenditures and encumbrances.
d. Appropriations are more than estimated revenue.
10. Which of the following accounts of a governmental unit is credited to close it out at the fiscal year-end?
a. Appropriations Control.
b. RevenueProperty Tax.
c. Budgetary Fund BalanceAssigned for Encumbrances.
d.Encumbrances.
Step by Step Answer:
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker