Which of the following activities would most likely be accounted for in a nonexpendable (proprietary) fund?
water operations
Expenses and expenditures are least likely to differ in amount for which type of transactions?
salaries
Expenditures in a governmental (expendable) fund would potentially include
all of the above (salaries&wages, capital outlay, long term principal retirement, long term debt interest)
The General Capital Assets nonfund account would be used to account for
capital assets acquired with governmental fund resources that will be used in governmental fund activities
Assume that the city of Wakefield purchased a tract of land to be used as a public park. The purchase was financed with proceeds from a five-year note issued by a local lending institution. The park itself will not be ready for public use, however, for at
the general fund, the general capital assets account, and general long term liabilities account.
Ashley Woods Village issued $4,000,000 in general obligation bonds to finance the widening of a local thoroughfare. This transaction will most likely
increase fund balance in the capital projects fund by 4,000,000.
Which of the following would not be classified as an expenditure?
depreciation
Which of the following is the basic governmental fund accounting equation?
financial assets - related liabilities = fund balance
The city of Green Hope levied property taxes of $1,000,000, 2% of which is expected to be uncollectible. How much revenue should be recorded in the Revenues Subsidiary Ledger as of the levy date?
$980,000
Assume the General Fund borrows $50,000 from the Enterprise Fund. The interfund loan is scheduled to be paid back in five years. Which of the following statements properly characterize the reporting effects of this transaction on the General Fund?
the transaction will have no effect on the General Fund balance and the interfund loan, though long term, should be reported as a general fund liability. both a and c.
A local school district issued a short-term note payable to purchase $500,000 of recreation equipment. The note will be repaid with General Fund resources. The General Fund would report
expenditures of $500,000 and a note payable of 500,000. both a and c.
The following information pertains to the Richardson County General Fund:
Expenditures 12,800,000
Revenues 9,200,000
Long-term note issue proceeds 1,000,000
Short-term note principal retirements 250,000
Operating transfers to other funds 75,000
The change
a 2,675,000 decrease
The town of Red Herring issued $60,000 of purchase orders. Assume that when all orders were received, the actual cost was $59,000. How much would be recorded as expenditures when the purchase orders were issued?
0
The town of Red Herring issued $60,000 of purchase orders. Assume that when all orders were received, the actual cost was $59,000. How much would be recorded as expenditures when the goods are received?
59,000
The following information pertains to the Scott County General Fund:
Appropriations $15,000,000
Estimated Revenues 14,000,000
Expenditures 14,800,000
Revenues 14,200,000
The change in Scott County's General Fund fund balance for the year is
a 600,000 decrease
Which of the following is not a common revenue source in a governmental fund budget?
other financing resources
During the year, Nathan Township amended their General Fund budget to reflect an increase in appropriations of $50,000 to be funded by an appropriation of existing fund balance. What would the necessary budgetary entry be to reflect this amendment?
unreserved fund balance dr. 50,000
appropriations cr. 50,000
A city levies $200,000 of property taxes for its current fiscal year. One percent of the tax levy is expected to be uncollectible. The city collects $170,000 of its taxes during the year and another $25,000 during the first two months of the following yea
197,000
Which of the following should be included in tax revenues for the current year?
none of the above are included in current year revenues.
The county received a $1,500,000 restricted grant from the state government to be used to improve its public safety department's communication systems. The county has met all eligibility requirements of the grant. In the current year, the General Fund sho
revenues
The county received a $1,500,000 restricted grant from the state government to be used to improve its public safety department's communication systems. The county will not meet all eligibility requirements of the grant until next fiscal year, when the cou
deferred revenues
Assume that a general capital asset was sold for $2,500. The asset was originally purchased for $10,000 and has been in use for 3 years. It has an estimated life of 5 years. What entry would be made in the General Fund to reflect this sale?
cash dr. 2,500
other financing sources cr. 2,500
A city's annual required contribution for the OPEB plan offered to their General Fund employees is $14,000. The city does not choose to make the annual required contribution but instead will continue to pay postretirement benefits as they come due. The cu
2,500
Assume that a government purchases $85,000 of inventory for the General Fund during the year. The General Fund began the year with an inventory balance of $15,000 and ended the year with a balance of $35,000. The General Fund uses the consumption method o
expenditures of 65,000 for the year.
If a government uses a perpetual inventory system for its General Fund and there is an inventory overage at the end of the year, the inventory asset account should
be increase and the expenditure account decreased
Carter County entered into capital lease to finance an Emergency-911 telecommunications system. The capitalizable cost of the equipment was $185,000. The county made a required down payment of $25,000. The first debt service payment will not be due until
expenditures dr. 185,000
other financing source cr. 160,000
cash cr. 25,000
A government has claims and judgments outstanding at the beginning of 20X5 of $1,000,000. These claims and judgments are expected to result in awards against the government of $800,000. $75,000 of these claims are due and payable from General Fund net ass
325,000
The General Fund reported a beginning balance of inventory of materials and supplies of $122,000. The ending balance was $150,000. Supplies purchased during the year totaled $600,000. The county uses the consumption method. The General Fund should report
572,000
Restricted fund balance can be the result of
donors requiring monies given to a city be spent for park beautification and a city council passing enabling legislation that requires proceeds from a newly authorized sales tax be spent on a downtown revitalization project. both b and c
the purchases method of accounting is premitted for
both prepaid insurance and materials and supplies