Chapter 4|53 SmartBook Quiz Questions Well Last-Minute Revision Toolkit: Everything You Need to Know!
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Institution
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As allowed by GASB standards, a town has established a policy of spending its constrained resources before spending its constrained resources before spending unconstrained resource. List the following resources in the order they are spent (from first to last). - ️️1. Restricted
2. Committed
3...
Chapter 4|53 SmartBook Quiz Questions
Well Last-Minute Revision Toolkit:
Everything You Need to Know!
As allowed by GASB standards, a town has established a policy of spending its constrained resources
before spending its constrained resources before spending unconstrained resource. List the following
resources in the order they are spent (from first to last). - ✔ ✔ 1. Restricted
2. Committed
3. Assigned
Banks customarily meet the working capital needs of a government by accepting a(n) _____ _____ note
from the government. - ✔ ✔ tax anticipation
Revenues from sources such as sales taxes, licenses and permits, fines and forfeits, charges for services,
and certain other sources are recorded using the: - ✔ ✔ modified accrual basis of accounting
The _____ tax levy must be large enough so that the collectible portion of the levy equals the needed
revenue from this source. - ✔ ✔ gross
If $100,000 is borrowed using a tax anticipation note, the necessary entries in both the General Fund
and the governmental activities include a credit to: - ✔ ✔ Tax Anticipation Notes Payable
If a $100,000 tax anticipation note is repaid with interest of $5,000, the General Fund entry include a
debit to: - ✔ ✔ Expenditures - 2017 for $5,000
If one fund transfers money to another and the receiving fund is not expected to repay the amount
transferred: - ✔ ✔ the transfer is nonreciprocal in nature and the transfer is considered an inter fund
transfer.
If taxes that were previously written-off are then collected: - ✔ ✔ an entry is recorded to reverse the
rite-off, it is highly desirable to return the tax bills to general ledger control, and the collection of cash
would be recorded in a journal entry.
If the General Fund makes a short-term loan in the amount of $10,000 to the Library Operating Fund, a
special revenue fund, the journal entry recorded by the General Fund will include a _____ to Interfund
, Loans Receivable - Current and the journal entry recorded by the Library Operating Fund will include a
_____ to Interfund Loans Payable - Current. - ✔ ✔ debit, credit
If the grant revenue finances a substantive part of the specified operating purpose, then the use of a
_____ _____ fund is required. - ✔ ✔ special revenue
If the Police Department, a General Fund department, is charged $1,100 for water service by the Water
Utility Fund, and Enterprise Fund, the General Fund entry recorded includes a debit to: - ✔ ✔
Expenditures - 2017
If the Police Department, a General Fund department, is charged $1,100 for water service by the Water
Utility Fund, and Enterprise Fund, the Governmental Activities entry recorded includes a credit to: - ✔
✔ Internal Balance
True or False: the GASB recommended net position format is: assets minus liabilities equals net position
rather than the traditional balance sheet format (assets equals liabilities plus fund equity). - ✔ ✔
True
Under GASB standards, property tax revenue is classified as a(n) _____ _____ revenue. - ✔ ✔
imposed nonexchange
When goods on order at the end of fiscal year 2016 are received in 2017, their actual cost is considered
an expenditure of the _____ appropriations to the extent of the amount encumbered in 2016; any
additional amount must be charged to the _____ appropriations. - ✔ ✔ 2016, 2017
When the bills for supplies and services ordered during the current year have been approved, in
addition to reversing the encumbrances entries and recording entries in the Expenditures control
account and subsidiary Expenditures Ledger accounts, as appropriate: - ✔ ✔ Expenses and/or assets
must also be recorded in governmental activities accounts at the government-wide level
When the budget is recorded for General Fund, a journal entry is recorded in the General Fund and, to
comply with the laws applicable to the village: - ✔ ✔ debits are posted to the subsidiary Estimated
Revenues ledger accounts & credits are posted to the subsidiary Appropriations ledger accounts
Which of the following statements about the Encumbrances account is correct? - ✔ ✔ The word
encumbrance never appears on the balance sheet.
Which of the following statements about the government-wide statement of net position and General
Fund balance sheet is correct? - ✔ ✔ The statement of net position reports financial information in a
more condensed manner than does the General Fund balance sheet.
Budgetary accounts generally should not be needed for permanent funds because: - ✔ ✔ the
principal cannot be appropriated or expended, and transactions of the fund result in changes in the fund
principal only incidentally
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