ACCT 3050: Chapter 3 Flashcards

1
Q

Budgetary practices of a government may differ from GAAP accounting practices due to ______. (choose 2)

*timing differences

*functional differences

*classification differences

*entity differences

A

timing differences

entity differences

perspective differences

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2
Q

Transfers into a fund and proceeds of debt issues and sales of government assets are examples of _____ of the fund.

*expenditures

*other financing uses

*other financing sources

*revenues

A

other financing sources

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3
Q

What is the purpose of creating a special revenue fund? (choose 3)

*to demonstrate that revenue was used for specified purposes.

*to account for a tax authorized by a legislative body for a specified purpose.

*to account for revenue restricted by an outside donor or grantor.

*to account for unrestricted revenue provided by an outside donor or grantor.

*to demonstrate profitability of resources available to the General Fund.

A

to demonstrate that revenue was used for specified purposes.

to account for a tax authorized by a legislative body for a specified purpose.

to account for revenue restricted by an outside donor or grantor.

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4
Q

For property taxes, GASB requires collection within _____ days after the end of the current period to be considered available.

*60

*120

*30

*90

A

60

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5
Q

Ad valorem property taxes ___. (choose 3)

*are based on the value of the property

*are not used as a source of revenue for many state governments

*may not be levied against personal property

*are a good source of financing for local governments

A

are based on the value of the property

are not used as a source of revenue for many state governments

are a good source of financing for local governments

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6
Q

True or false: Penalties on delinquent taxes should be recognized as revenue when they are received.

A

False

Penalties should be recognized as revenue when they are assessed.

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7
Q

The purpose of a(n) ______ is to defray part or all of the cost of a specific improvement or service that is presumed to be a particular benefit to the properties against which the special assessments are levied.

*ad valorem tax

*special assessment

*sales tax

*income tax

A

special assessment

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7
Q

Interest may apply to delinquent taxes for the length of time between the day the tax becomes delinquent until ______. (choose 2)

*the day it is paid

*April 15th

*the last day of the year

*the day it is discharged

A

the day it is paid

the day it is discharged

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8
Q

Major revenue source classes for revenue include ______. (choose 3)

*estimated revenues

*charges for services

*taxes

*appropriations

*fines and forfeits

A

charges for services

taxes

fines and forfeits

special assessments

licenses and permits

intergovernmental revenues

miscellaneous revenues

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9
Q

An internal allocation of funds on a periodic basis usually agreed upon by the department heads and chief executive is called a(n) ______.

*disbursement

*expenditure

*allotment

*encumbrance

A

allotment

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10
Q

Budgeted interfund transfers and debt proceeds may be recorded in ______. (choose 2)

*Intergovernmental Revenues

*Estimated Other Financing Uses

*Other Financing Sources and Uses

*Estimated Other Financing Sources

A

Estimated Other Financing Uses

Estimated Other Financing Sources

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11
Q

An activity that is directed to the attainment of a specific purpose is called a(n) ______.

*object

*activity

*function

*program

A

program

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12
Q

A key distinction between classification of expenditures by organizational unit and classification by program or function is that ______.

*responsibility for a function is fixed

*responsibility for both a unit and a function is fixed

*responsibility for a unit is fixed

A

responsibility for a unit is fixed

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13
Q

The journal entry to record the issuance of a purchase order would include a credit to which account?

*Encumbrances Outstanding

*Encumbrances

*Expenditures

*Appropriations Outstanding

A

Encumbrances Outstanding

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13
Q

Interest on a general long-term liability is an example of a(n) ____________ expense.

*indirect

*direct

A

indirect

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14
Q

When a government treats property tax as a residual source of revenue, the amount to be raised for property taxes is determined ____ revenues from all other sources are budgeted.

*before

*after

A

after

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15
Q

Taxes are levied on the assessed valuation of which type of property?

*Nontaxable property

*All property

*Taxes are not levied on property.

*Taxable property

A

Taxable property

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16
Q

GASB standards provide that revenue from sales taxes, income taxes, and gross receipts tax be recognized ______.

*in the accounting period in which the collection occurs

*systematically over the life of the tax period

*in the accounting period in which the underlying transactions occur

A

in the accounting period in which the underlying transactions occur

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17
Q

Match the type of revenue on the left with the description on the right.

Reported in the functions/programs section of the statement of activities.

A

Program revenues

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18
Q

Match the type of revenue on the left with the description on the right.

Reported in a separate section in the lower portion of the statement of activities

A

General revenues

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19
Q

Match the special reporting item with its definition.

Transaction or other events that are both unusual in nature and infrequent in occurrence

A

Extraordinary items

20
Q

Match the special reporting item with its definition.

Transactions or events that are within management’s control that may be either unusual in nature or infrequent in occurrence

A

Special items

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