Governmental Entities: Advanced Financial Accounting! Trivia Quiz

33 Questions | Total Attempts: 165

SettingsSettingsSettings
Governmental Entities: Advanced Financial Accounting! Trivia Quiz - Quiz

.


Questions and Answers
  • 1. 
    One of the differences between accounting for a governmental (not-for-profit) unit and a commercial (for-profit) enterprise is that a governmental unit should:
    • A. 

      Not record depreciation expense in any of its funds

    • B. 

      Always establish and maintain complete self-balancing accounts for each fund

    • C. 

      Use only the cash basis of accounting

    • D. 

      Use only the modified accrual basis of accounting

  • 2. 
    Belle Valley incurred $100,000 of salaries and wages for the month ended March 31, 20X2.  How should this be recorded on that date?
    • A. 

      DR: Expenditures-Salaries and Wages 100,000; CR: Vouchers Payable 100,000

    • B. 

      DR: Salaries and Wages Expense 100,000; CR: Vouchers Payable 100,000

    • C. 

      DR: Encumbrances-Salaries and Wages 100,000; CR: Vouchers Payable 100,000

    • D. 

      DR: Fund Balances 100,000; CR: Vouchers Payable 100,000

  • 3. 
    Which of the following expenditures is normally recorded on the accrual basis in the general fund?
    • A. 

      Interest

    • B. 

      Personal services

    • C. 

      Inventory items

    • D. 

      Prepaid expenses

  • 4. 
    Which of the following accounts of a governmental unit is credited when taxpayers are billed for property taxes?
    • A. 

      Estimated Revenue

    • B. 

      Revenue

    • C. 

      Appropriations

    • D. 

      Fund Balance-Assigned for Encumbrances

  • 5. 
    Fixed assets purchased from general fund revenue were received. What account, if any, should have been debited in the general fund?
    • A. 

      No journal entry should have been made in the general fund

    • B. 

      Fixed assets

    • C. 

      Expenditures

    • D. 

      Fund Balance-Unassigned

  • 6. 
    The initial transfer of cash from the general fund in order to establish an internal service fund would require the general fund to credit Cash and debit.
    • A. 

      Accounts Receivable-Internal Service Fund

    • B. 

      Transfers Out

    • C. 

      Budgetary Fund Balance-Assigned for Encumberances

    • D. 

      Expenditures

  • 7. 
    Which of the following steps in the acquisition of goods and services occurs first?
    • A. 

      Appropriation

    • B. 

      Encumbrance

    • C. 

      Budget

    • D. 

      Expenditure

  • 8. 
    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 Balance-Assigned for Encumbrances

  • 9. 
    When the Estimated Revenue Control account of a governmental unit is closed out at the end of the fiscal year, the excess of estimated revenues overestimated appropriations is
    • A. 

      Debited to Fund Balance-Unassigned

    • B. 

      Debited to Fund Balance-Assigned for Encumbrances

    • C. 

      Debited to Budgetary Fund Balance-Unassigned

    • D. 

      Credited to Fund Balance-Assigned for Encumbrances

  • 10. 
    The Carson City general fund issued purchase orders of $630,000 to venders for supplies.  Which of the following entries should be made to record this transaction?
    • A. 

      DR: Encumbrances 630,000; Budgetary Fund Balance-Assigned for Encumbrances

    • B. 

      DR: Expenditures 630,000; CR: Vouchers Payable 630,000

    • C. 

      DR: Expenses 630,000; CR: Vouchers Payable 630,000

    • D. 

      DR: Budgetary Fund Balances 630,000; Encumbrances 630,000

  • 11. 
    The following balances are included in the subsidiary records of Dogwood's Parks and Recreation Department on March 31, 20X2:                                         Appropriations-Supplies                             $7,500                                         Expenditures-Supplies                                 4,500                                         Encumbrances-Supply Orders                        750 How much does the department have available for additional purchases of supplies?
    • A. 

      $0

    • B. 

      $2,250

    • C. 

      $3,000

    • D. 

      $6,750

  • 12. 
    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?
    • A. 

      Memorandum entry only

    • B. 

      Appropriations Control                                  900,000 Budgetary Fund Balance-Unassigned          100,000            Estimated Revenues Control                                              1,000,000

    • C. 

      Estimated Revenues Control                    1,000,000                   Appropriations Control                                                    900,000                   Budgetary Fund Balance-Unassigned                            100,000

    • D. 

      Revenue Receivable                                1,000,000                  Expenditures Payble                                                        900,000                  Budgetary Fund Balance-Unassigned                             100,000

  • 13. 
    Which of the following accounts of a governmental unit is credited when the budget is recorded?
    • A. 

      Encumbrances

    • B. 

      Budgetary Fund Balances-Assigned for Encumbrances

    • C. 

      Estimated Revenue Control

    • D. 

      Appropriations Control

  • 14. 
    Which of the following accounts of a governmental unit is debited when supplies previously ordered are received?
    • A. 

      Encumbrances

    • B. 

      Budgetary Fund Balance-Assigned for Encumbrances

    • C. 

      Vouchers Payable

    • D. 

      Appropriations Control

  • 15. 
    Which of the following accounts of a governmental unit is credited to close it out at the end of the fiscal year?
    • A. 

      Appropriations Control

    • B. 

      Revenue-Property Tax

    • C. 

      Budgetary Fund Balance-Assigned for Encumbrances

    • D. 

      Encumbrances

  • 16. 
    The primary focus in accounting and reporting for governmental funds is on
    • A. 

      Income determination

    • B. 

      Flow of financial resources

    • C. 

      Capital maintenence

    • D. 

      Transfers relating to proprietary activities

  • 17. 
    The governmental fund measurement focus is on the determination of:
    • A. 

      Income, Financial Position and Flow of Financial Resources

    • B. 

      Financial Position

    • C. 

      Flow of Financial Resources

    • D. 

      Financial Position and Flow of Financial Resources

  • 18. 
    A Budgetary Fund Balances-Assigned for Encumbrances in excessof a balance of Encumbrances Control indicates
    • A. 

      An excess of vouchers payable over encumbrances

    • B. 

      An excess of purchase order over invoices received

    • C. 

      A recording error

    • D. 

      An excess of appropriations over encumbrances

  • 19. 
    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

  • 20. 
    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 What amount should Cedar report for 20X6 as revenues from property taxes?
    • A. 

      700,000

    • B. 

      600,000

    • C. 

      690,000

    • D. 

      500,000

  • 21. 
    Oak City issued a purchase order for supplies with an estimated cost of $5,000.  When the supplies were received, the accompanying invoice indicated an actual price of $4,950.  What amount should Oak debit (credit) to Budgetary Fund Balances-Assigned for Encumbrances after the supplies and invoice received?
    • A. 

      $5,000

    • B. 

      (50)

    • C. 

      4,950

    • D. 

      50

  • 22. 
    For the budgetary year ending December 31, 20X6, Johnson City's general fund expects the following inflows of resources:
    • 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 record for estimated revenues?
    • A. 

      9,000,000

    • B. 

      9,500,000

    • C. 

      10,500,000

    • D. 

      10,000,000

  • 23. 
    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

  • 24. 
    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 same functions

  • 25. 
    The general fund of Mattville have several interfund activities during the fiscal year ended June 30, 20X9.  For each general fund transaction/transfer, select what qualifies as an interfund loan.
    • A. 

      Received bills from an internal service fund for using city-owned vehicles

    • B. 

      Transferred cash to start an enterprise fund. The enterprise fund does not have to return the cash to the general fund

    • C. 

      Received cash from a special revenue fund that was discontinued

    • D. 

      Transferred cash to a capital projects fund to help construct a building

    • E. 

      Transferred cash to a debt service fund to pay interest and principal of a general long-term debt

    • F. 

      Transferred cash to the pension trust fund representing the employer's contribution toward the pension of general fund employees

    • G. 

      Transferred resources to an enterprise fund. It is expected that these resources will be repaid with interest

    • H. 

      Transferred cash to a special revenue fund. The special revenue fund incurred and paid expenditures on behalf of the general fund

    • I. 

      Received cash from an internal service fund. The cash received represented repayment of an advance made during the previous year

    • J. 

      Received bills from an enterprise fund for using public parking facilities

Back to Top Back to top