Exam (elaborations)
ACG4501 EXAM 2 (Ch. 3, 4 & 5) (1).
ACG4501 EXAM 2 (Ch. 3, 4 & 5) (1).
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ACG4501 EXAM 2 (Ch. 3, 4 & 5)Expenses minus program revenues equals net (expense) revenue. Net (expense) revenue plus
general revenues equals change in net position. - ANS-Which of the following best describes
the recommended format for the government-wide statement of activities?
Either report as a direct expense of the function or program with which the related depreciable
assets are identified or report as an indirect expense on a separate line, or as an expense of the
general government (or similar) function, for depreciable assets that benefit all functions or
programs. - ANS-Which of the following is an acceptable method of reporting depreciation
expense for depreciable assets used by governmental activities?
Restricted, committed, assigned, and unassigned. - ANS-GASB standards require that fund
balances of governmental funds be classified according to whether the fund balance is
spendable or nonspendable. Spendable fund balances are further classified as:
All of the above. - ANS-When determining taxable property for the purpose of property tax levy,
which of the following would likely be excluded from the calculation?
Property owned by governments.
Property exempted from taxation by the government.
Property used by religious or charitable organizations.
All of the above.
Arise from interfund transfers out. - ANS-One characteristic that generally distinguishes other
financing uses from gis that other financing uses:
An allotment. - ANS-An internal allocation of funds on a periodic basis, which is often used to
regulate the use of appropriations over a budgetary period is called:
Fund, function or program, organization unit, activity, character, and object. - ANS-According to
GASB standards, expenditures may be classified by:
Either required supplementary information (RSI) or basic financial statements, as elected by the
government. - ANS-Under GASB requirements for external financial reporting, one would find
the budgetary comparison schedule (or statement) in the:
, Appropriations minus the sum of expenditures and encumbrances. - ANS-Before placing a
purchase order, a department should check that available appropriations are sufficient to cover
the cost of the item being ordered. This type of budgetary control is achieved by reviewing:
Est. Rev. 1,100,000
Budget Fund Bal 100,000
Appropriations 1,000,000 - ANS-Spruce City's finance department recorded the recently
adopted General Fund budget at the beginning of the current fiscal year. The budget approved
estimated revenues of $1,100,000 and appropriations of $1,000,000. Which of the following is
the correct journal entry to record the budget?
Debited at the beginning of the year and credited at the end of the year. - ANS-When the budget
of a government is recorded and Appropriations exceeds Estimated Revenues, the Budgetary
Fund Balance account is:
An obligation is incurred that will be paid from currently available financial resources. -
ANS-Under the modified accrual basis of accounting, expenditures generally are not recognized
until:
Organization unit. - ANS-The expenditure classification "City Attorney" is an example of which of
the following types of classification?
Depreciation expense. - ANS-Which of the following items would not appear in a statement of
revenues, expenditures, and changes in fund balances prepared for a governmental fund?
Uncommitted. - ANS-Fund balance may be classified as all of the following except:
Other financing source. - ANS-The account "Interfund Transfers In" would be classified in a
General Fund statement of revenues, expenditures, and changes in fund balance as a(an):
General program revenues. - ANS-Which of the following is not a category of program revenue
reported on the statement of activities at the government-wide level?
Accrual Basis- NO
Modified Accrual- YES - ANS-Under which basis of accounting for a government should
revenues be recognized in the period when they are measurable and available?
Goods are Ordered: NO
Goods are Received: YES - ANS-The Encumbrances control account of a city is decreased
when
Expenditure. - ANS-When equipment that is to be used by the General Fund is received, how
should it be recorded?
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