Reference no: EM131299748

Question 1

Which of the following is the primary reason why governments formally integrate their legally adopted budget into their accounting systems?

Question 2

A public school district formally adopted a budget with estimated revenues of $800 and approved expenditures of $780. Which of the following is the appropriate entry to record the budget?

Question 3

Per GASB standards, a budget-to-actual comparison must include columns for the actual results and

Question 4

Hill City uses encumbrance accounting to control expenditures. However, it charges the cost of outstanding purchase commitments to expenditures in the year they are received, not in the year they are ordered. If Hill City had $10,000 of purchase commitments outstanding at the end of Year 1 and received those goods during Year 2 at a cost of $9,800, what would be the impact on total fund balance for Year 2?

Question 5

Which of the following is NOT a function of a budget in the governmental environment?

Question 6

Which of the following is the best reason for preparing budgets for government entities on the cash basis?

Question 7

During the previous year, Bane County closed its Encumbrances account. At the end of the previous year there was $5,000 of outstanding purchase commitments. To restore these commitments to the accounts, which of the following entries would be required?

Question 8

A governmental entity has formally integrated the budget into its accounting records. At year-end the ledger account "Revenues from property taxes" has a debit balance. Which of the following is the best explanation for the debit balance?

Question 9

At year-end Oakland County had $3,000 of outstanding purchase commitments on the books. After the appropriate closing entries are made, what is the effect on the total fund balance of Oakland County?

Question 10

GASB requires that government entities present their budget-to-actual comparison data on which of the following bases of accounting?

Question 11

Why would a government be more likely than a not-for-profit organization to integrate its budget into its accounting system?

Question 12

In which of the following cases would the reserve for encumbrances account be decreased?

Question 13

Which of the following is NOT a reason that legally adopted budgets may not be readily comparable to amounts reported in the GAAP-based financial statements?

Question 14

Lincoln County uses encumbrance accounting to control expenditures. It charges the cost of outstanding purchase commitments to expenditures in the year they are ordered, not in the year they are received. If the county had $7,000 of purchase commitments outstanding at the end of Year 1 and received those goods during Year 2 at a cost of $7,800, what would be the impact on total fund balance for Year 2?

Question 15

When Spruce City receives goods at a cost of $9,700 that were encumbered in the prior year for $10,000, which of the following entries are required (assume that encumbrances lapse at year end)?