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