Gov't Final Chapter 3

1. Revenues of governmental fund types should be recognized when:

Taxes become delinquent.

Measurable and available.

Collected in cash.

Authorized by the budget ordinance.

2. When the budget for the General Fund is recorded, the journal entry will include:

A debit to Estimated Revenues Control.

A debit to Appropriations Control.

A credit to Revenues Control.

A credit to Fund Balance-Reserved for Encumbrances.

3. What is the first step in acquiring goods or services?

Requisition order

Expenditures

Encumbrance

Appropriation

4. Which of the following results in an expenditure?

Receive goods previously ordered

Receive an invoice on goods previously received

Place a purchase order

Payment of an invoice previously received.

5. Indicate the type of increase or decrease the following transaction should be recorded in the General Fund: Payment of $5,000 cash to the Stores and Services Fund for supplies each month.

Increase Revenues

Increase Other Financing Uses-Transfers Out

Increase Other Financing Sources-Transfers In

Increase Expenditures

Increase Encumbrances

Decrease Expenditures

None of the above

6. If Budgetary Fund Balance was debited in the process of recording a budget for the General Fund of a governmental unit, it can be assumed that:

Estimated Revenues exceed Appropriations.

Estimated Expenses exceed Actual Revenues.

Appropriations exceed Estimated Revenues.

Actual Expenses exceed Estimated Expenses.