1. A review of Park Citys books shows the following information: $2,500 of outstanding vouchers payable and...
Question:
1. A review of Park City’s books shows the following information: $2,500 of outstanding vouchers payable and $3,000 of outstanding purchase order amounts. Which of these amounts would you expect to see in the general fund’s encumbrances account?
a. $2,500
b. $3,000
c. $5,500
d. $500
2. During the previous year, Bane County closed its Encumbrances account. At the end of the previous year there was $5,000 of outstanding purchase commitments. To restore these commitments to the accounts, which of the following entries would be required?
a. Debit Reserve for encumbrances $5,000; credit Encumbrances $5,000.
b. Debit Encumbrances $5,000; credit Reserve for encumbrances $5,000.
c. Debit Encumbrances $5,000; credit Fund balance $5,000
d. Debit Fund balance $5,000; credit Reserve for encumbrances $5,000.
3. A city that has a 12/31 fiscal year end has adopted a policy of recognizing the maximum amount of property tax revenue allowable under GAAP. Property taxes of $720,000 (of which 10 percent are estimated to be uncollectible) are levied in October 2013 to finance the activities of the fiscal year 2014. During 2014, cash collections related to property taxes levied in October 2013 were $600,000. In 2015the following amounts related to the property taxes levied in October 2013 were collected: January $30,000; March $6,000. For the fiscal year ended 12/31/14, what amount should be recognized as property tax revenues related to the 2013 levy on the government-wide financial statements?
a. $720,000.
b. $648,000.
c. $630,000.
d. $600,000.
4. State governments should recognize food stamp revenue
a. When they receive the food stamps.
b. When food stamps are distributed by the state to eligible recipients.
c. When the recipient uses the food stamps
d. NEVER. Food stamps are not financial resources.
5. State Community College, a public college, grants faculty members a one-year sabbatical leave after each seven years of service. There are no requirements for research, study, or service during the compensated sabbatical leave. A particular faculty member earns $40,000 per year. Assuming that the college maintains its books and records in a manner that facilitates the preparation of fund financial statements and assuming that any appropriate accruals have been made, what is the appropriate entry to record the employee’s salary paid while on sabbatical?
a. Debit Expenditures $40,000; Credit Cash $40,000.
b. Debit Sabbatical leave payable $40,000; Credit Cash $40,000.
c. Debit Expenditures $40,000; Credit Sabbatical leave payable $40,000.
d. No entry required.
Chemistry The Central Science
ISBN: 978-0321696724
12th edition
Authors: Theodore Brown, Eugene LeMay, Bruce Bursten, Catherine Murphy, Patrick Woodward