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16 terms

Chapters 4,3,2,1

STUDY
PLAY
Under an encumbrance system, which account is debited when a purchase order is issued
Encumbrances.
The purpose of encumbrance accounting is to
Avoid expenditures exceeding appropriations.
A city ordered uniforms with an expected cost of $6,000 for policemen. This amount is encumbered. The uniforms are received with an invoice of $5,900. The entries to record the receipt of the uniforms should include a debit to
Encumbrances Outstanding of $6,000.
Which of the following budgetary entries would the town of Geneva make upon adoption of its Special Revenue Fund Budget for the year? Assume the following-Estimated Revenues $6,400,000 & Appropriations 6,080,000
Dr. Est. Rev 6,400,000, Cr. Appropriations 6,080,000 & Budgetary Fund Bal 320,000
For a transaction to be classified as an extraordinary item it must be
Unusual in nature and infrequent in occurrence.
A city's General Fund provides a two-year loan to the Internal Service Fund. To record this transaction the city should record a debit to what account in the General Fund
Advance to the Internal Service Fund.
General Fund resources are provided to a Capital Projects Fund to finance a portion of a major capital project. The Capital Projects Fund is required to repay the resources that it received from the General Fund. This transaction is an example of an interfund
Loan.
Ledford County levied property taxes of $10,000,000, 2% of which is expected to be uncollectible. Prior to this new levy, the county still had $ 350,000 of uncollected taxes from previous years. How much should be reported as Taxes Receivable after the new levy has been recorded
$10,350,000.
A statement of cash flows is required for which of the following
Enterprise Fund.
Receipts from a special fishing tax committed to maintain the (no-charge) public fishing pier should be accounted for in
A Special Revenue Fund.
The operations of a city bus line receiving all its funding from user charges would be accounted for in
An Enterprise Fund.
A government can only have one
General Fund.
The primary purpose of a fund is
To segregate an organization's resources according to the purpose(s) for which they are to be used.
Which of the following activities would most likely be accounted for as a business-type activity
Water operations.
Which of the following would not be considered a government or nonprofit organization
A software company that sells software exclusively to state and local governments.
Expenses in a proprietary (nonexpendable) fund would not potentially include
Long-term debt principal retirement.