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Cards In This Set
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One of the differences between accounting for a governmental and a commercial enterprise is that a governmental unit shoud:
(a) Not record depreciation expense in any of its funds (b) Always establish and maintain complete self-balancing accounts for each fun (c) Use only the cash basis of accounting (d) Use only the modified accrual basis of accounting |
(b) Always establish and maintain complete self-balancing accounts for each fund.
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Bell Valley incurred $100,000 of salaries and wages for the month ended March 31, 20X2. How would this be recorded on that date?
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Expenditures - Salaries and Wages 100K
Vouchers Payable 100K |
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Which of the following expenditures is normally recorded on the accrual basis in the general fund?
(a) Interest (b) Personal services (c) Inventory ittems (d) Prepaid expenses |
(b) Personal services
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Which of the following accounts of a governmental unit is credited when taxpayers are billed for property taxes?
(a) Estimated Revenue (b) Revenue (c) Appropriations (d) Fund Balance-Assigned for Encumbrances |
(b) Revenue
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Fixed assets purchased from general fund revenue were received. What account, if any, should have been debited in the general fund?
(a) No journal entry should have been made in the general fund (b) Fixed Assets (c) expenditures (d) Fund Balance-Unassigned |
(c) Expenditures
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The initial transfer of cash from the general fund in order to establish an internal service fund would require the general fund to credit Cash and debit
(a) Accounts Receivable (b) Transfers Out (c) Budgetary Fund Balance - Assigned for Encumbrances (d) Expenditures |
(b) Transfers Out
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How would you record an interfund transfer out made to the capital projects fund?
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Debit Interfund Transfer Out
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How would you record approved purchase orders that were issued for supplies
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Debit Encumbrances
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The above mentioned supplies were received and the related invoices were approved
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Debit Expenditures
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Salaries and wages were incurred
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Debit Expenditures
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Cash was transferred to establish an internal service fund
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Debit Interfund Transfer Out
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The property tax levy was passed by the city council and tax bills were sent to property owners
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Credit Revenues
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Property taxes for the current year were collected
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Credit Property Taxes Receivable - current
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Appropriations were recorded on adoption of the budget
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Credit Appropriations Control
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Estimated revenues were recorded on adoption of the budget
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Debit Estimated Revenues Control
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