Facilitate the year-end budget-to-actual comparisons
Amend the budget during the year
Help the government monitor revenues and expenditures
Apportion appropriated expenditures to specific accounts
Recording the budget
Recording the receipt of an invoice from its telephone service provider
Approving an allocation of budget to a department for spending
Arise from debt issuances or interfund transfers in
Increase fund balance when they are closed at year-end
Have a normal credit balance
Provide financial resources for the recipient fund
They are approved by the legislative body
Goods or services are ordered
They are paid in cash
An obligation is incurred that will be paid from currently available resources
Be credited for $1,000
Be credited for $22,000
Be debited for $21,000
Operating, capital, and cash budgets are prepared by governmental units, but only operating budgets are prepared by commercial organizations.
Budgets prepared by commercial organizations must be approved by a governing body, whereas those prepared by governmental units need no approvals.
Budgets prepared by governmental units are legal documents, whereas those prepared by commercial organizations are not.
Budgets prepared by commercial organizations are formally recorded in the organizations operating accounts, whereas those prepared by governmental units are not.
Redemption of bonds
Probable delinquent taxpayers can be identified individually
Property tax receivables are carried at net realizable value
An expenditure for bad debts is recorded in the accounts
Property tax revenues will exceed the total amount of the levy
|A municipality uses the allowance method to record uncollectible property taxes. If it decides to write off an account as uncollectible, it should:|
Debit bad debts expenditures; credit allowance for uncollectible property taxes
Debit allowance for uncollectible property taxes; credit property taxes receivable
Debit allowance for uncollectible property taxes; credit property tax revenues
Debit property tax revenues; credit property taxes receivable
|Which of the following revenues of the General Fund are usually recorded before they are actually received in cash?|
Parking meter receipts
Fines and penalties
License and permit fees
A debit to office supplies inventory
A credit to office supplies expenditure
A debit to office supplies expenditure
A debit to office supplies inventory
A credit to office supplies expenditure
A debit to expenditure
Credit to expenditures
|If the City of Castletown sells a surplus ambulance, the entry to record this sale on the books of the General Fund should include which of the following?|
A credit to Other financing sources proceeds from sale of general fixed assets
A credit to a Vehicles fixed asset acc
A debit to Unreserved fund balance ount
A debit to Encumbrances capital equipment
|The budget of the General Fund of the City of Olde Glen shows an ap-propriation for capital equipment of $ 150,000. So far a fire engine, cost-ing $ 50,000, has been received and paid for. Another fire engine, expected to cost $ 60,000, has been ordered and an encumbrance for this amount is outstanding. How much can the city legally spend for a third fire engine this year?|
Always returned to the provider( s) of the resources
Always transferred to a Debt Service Fund
Disbursed according to the directives of the resource provider
Always transferred to the General Fund
|Which of the following is the most reliable means of distinguishing a trust relationship from an agency relationship for purposes of deciding which type of fiduciary fund should be used?|
Examine the amount of money involved; agency relationships generally involve smaller amounts.
Examine the aggregate of factors, such as the enactment that brought the relationship into existence, statutes, regulations, etc, that help define the nature of the relationship.
Examine the length of time assets will be held; trust relationships are generally in existence longer than agency relationships.
Examine the wording of any agreements to determine if the word "trust" or "agency" is used.
|In what way can the amounts in an Investment Trust Fund be invested?|
Only in corporate stocks and bonds
Only in governmental bonds
Only as provided in the trust agreement
Any way the government that operates the fund wishes
|How are proceeds on the sale of an investment in excess of its book value handled in a Private Purpose Trust Fund?|
May be debited to the assets or an additions account
May be debited or credited to the asset account
Must be credited to an additions account
May be credited to the asset account
|For which of the following activities might an Agency Fund be used?|
None of the these
Debt service of general obligation bonds used to finance an addition to city hall
Revenue generated from a property tax levy
Expenditures of the General Fund
Debt service for Enterprise Fund debt
|Which of the following funds can be used to account for the spendable in-come from a Private Purpose Trust Fund?|
None of the these
Capital Projects Fund
Pension Trust Fund
Letter of transmittal, MD&A, and financial.
Introductory, financial, and statistical.
Introductory, MD&A, and financial.
Letter of transmittal, financial, and supplementary.
|The section of the comprehensive annual financial report that presents tables and charts showing social and economic data in addition to financial trends, fiscal capacity, and operating information of the government is the:|
Management discussion and analysis section.
|Which of the following information should be included in the financial section of a comprehensive annual financial report?|
The basic financial statements, including notes thereto.
Tables and charts showing demographic and economic data.
A description of the government.
|The fund financial statements for governmental funds should include a|
Statement of cash flows.
Statement of revenues, expenses, and changes in fund net assets.
Statement of activities.
|In governmental financial reporting, what is blending?|
A method of preparing the notes to the CAFR
The process of including the financial data of a component unit with the financial data of the primary government
The process of combining intergovernmental revenues with the revenues of the reporting government
The process of reporting the financial data of a component unit as a sep-arate column in the reporting entitys financial statements
|From the following, select the two conditions that, taken together, will cause an entity to be reported as a component unit of a primary government:|
The primary government is required by law to finance the entity's deficits. .
The primary government is authorized by law to bill the entity the cost of police and fire protection
The primary governments chief executive can appoint a voting majority of the entity's governing body.
The primary governments director of finance serves as a member of the entity's governing body.
The primary government is required by law to purchase its electricity from the entity, which also supplies electricity to the residents of the community.
|Thomas Village operates on a calendar-year basis. On January 1, 2009, it had outstanding property taxes receivable of $ 40,000 and deferred property tax revenue of $ 10,000. On January 1, 2009, it levied property taxes of $ 1,000,000 to cover its 2009 activities. During 2009, it collected the entire$ 40,000 $40,000 of receivables that were outstanding as of January 1, as well as $ 975,000 against the 2009 levy. With regard to the uncollected 2009 taxes, the village expected to collect $ 20,000 during the first 60 days of 2010 and the remaining $ 5,000 during the rest of 2010. How much should Thomas Village recognize as property tax revenues in its General Fund for calendar year 2009?|
|The governmental fund financial statements are intended to report on fiscal accountability.|
|Which measurement focus should be used in government-wide financial statements?|
The same measurement focus as that used in accounting for each fund type
The current financial resources measurement focus
The economic resources measurement focus
The economic resources measurement focus for governmental fund types and the current financial resource measurement focus for proprietary and fiduciary fund types
|How should the difference between assets and liabilities be characterized in government-wide financial statements?|
As fund balances
As fund equity
As net assets
As available for spending
|How should component units be displayed in government-wide financial statements?|
Component units should not be reported in government-wide financial statements
All component units should be included either in the column for governmental activities or in the column for business-type activities
Component units should be blended where appropriate; discretely presented component units should be reported in a separate column
All component units should be included with other business-type activities
|The General Fund makes a transfer to the Debt Service Fund. How should the transfer be reported in the financial statements?|
The transfers in and out should be reported in the government-wide operating statement, but not in the fund operating statement.
The transfers in and out should be reported in neither the fund operating statement nor the government- wide operating statement.
The transfers in and out should be reported in the fund operating statement, but not in the government- wide operating statement.
The transfers in and out should be reported in both the fund operating statement and the government-wide operating statement.
|A village issues $ 3,000,000 of general obligation bonds to build a new fire-house. How should the debt be reported?|
As a liability in the fund balance sheet
As a liability in both the fund balance sheet and the government- wide statement of net assets
As a liability in the government- wide statement of net assets
As proceeds of debt in the government- wide statement of activities
|A village levies property taxes in the amount of $ 1,260,000 for the fiscal year ended June 30, 2009. It collects $ 1,200,000 during the year. Regarding the $ 60,000 of delinquent receivables, it expects to collect $ 25,000 in July and August of 2009 and another $ 20,000 after August but before March of 2010. It expects to write off $ 15,000 as uncollectible. How much should the village recognize as property tax revenue in its government- wide statement of activities for the fiscal year ended June 30, 2009?|
|Which of the following statements concerning deriving government-wide financial statement is true?|
Net Assets does not reflect spendable equity
Adjustments made to convert governmental funds to governmental activities are posted to the general ledger
The worksheet approach to deriving government-wide financial statements is required by GAAP
All of these are false
|If Parnell Parish has two major governmental funds, to major Enterprise Funds, three fiduciary funds and two discrete component units, what would be the minimum number of columns reported in its government-wide Statement of Net Assets?|
|When should property tax revenues be recognized in government-wide financial statements?|
In the period for which the taxes are levied (net of estimated refunds and uncollectibles), provided they are measurable and available
In the period for which the taxes are levied (net of estimated refunds and uncollectibles), even if the enforceable legal claim arises or due date for payment is in a different period
In the period they are collected in cash, together with an accrual for uncollected taxes
In the period when an enforceable legal claim arises or when the resources are received, whichever occurs first
|On July 1, 2008, a city used tax resources of $70,000 to acquire three police cruisers. The police cars were expected to have a useful life of three years, after which the salvage value would be $10,000. Describe the adjustment or adjustments needed to prepare government-wide financial statements from the city's calendar year 2008 fund-level financial statements|
Record capital assets, and record six months' depreciation ($11,667)
Record capital assets, reduce capital outlay expenditures, and record six months' depreciation ($10,000)
Record capital assets, reduce capital outlay expenditures, and record six months' depreciation ($11,667)
No adjustments are needed
|What constitutes the basic financial statements of a government?|
Financial section of the comprehensive annual financial report (CAFR).
Government-wide financial statements plus notes.
Government-wide financial statements plus fund financial statements plus notes.
Government-wide financial statements plus fund financial statements plus notes plus required supplementary information (RSI).