Chapter 3 - Financial Records

Question 1

What nine books of account should be used by each municipality for the Capital Fund?

Answer 1

1. Cash Receipts Journal
2. Cash Disbursements Journal
3. General Journal
4. General Ledger
5. Bond and Interest Register
6. Registered Bond Record
7. Note Register
8. Improvement Authorization Ledger
9. Capital Asset Record

Question 2

What is the purpose of the Cash Receipts Journal?

Answer 2

To provide for the orderly and systematic initial record of cash received from any source.

Question 3

What is the purpose of the Cash Disbursements Journal?

Answer 3

To provide for the orderly and systematic initial record of cash disbursed for any purpose.

Question 4

What is the purpose of the General Journal?

Answer 4

The record adjustments to the general ledger

Question 5

What types of adjustments to the general ledger are recorded in the General Journal?

Answer 5

1. The opening of accounts at the beginning of the period upon adoption of proper resolution or ordinance
2. The opening of accounts at the beginning of the accounting period
3. Making adjustments or corrections to previously recorded financial transactions and the recording of the closing period adjustments

Question 6

What is the purpose of the general ledger?

Answer 6

To provide for the orderly and systematic recording of financial transactions, usually in summary form, as they have been recorded in the books of original entry, the journals

Question 7

What is the purpose of the Coupon Bond and Interest Register?

Answer 7

To provide for the recording of detail information on coupon bonds issued and the payment of interest and accounting for interest coupons on each bond