Class II Review Flashcards
The cash receipts journal results in a debit to:
Cash
The property owner’s proportionate cost of a sewer line is recorded in the:
Utility assessment trust lien account
The method of accounting for recording transactions which is used by NJ municipalities is:
Modified accrual basis
Outstanding encumbrances at the end of the budget year are reported as:
A cash liability and are part of the statutory appropriation reserve balance
At the end of the second budget year any remaining uncommitted appropriation reserves are
Lapsed and returned to the fund balance through journal entries
The difference between the anticipated expenditures in a municipal budget and the amount of anticipated revenue is:
Amount to be raised by taxation
The “normal” balance for an asset account is:
Debit
Capital items must have a useful life of at least:
5 years
A check drawn on the general account to fund a petty cash account results in a ____ to cash
credit
The Reserve for Uncollected Taxes is:
An appropriation required by statute to cover the cash flow requirement of the school, county, and municipal obligations
The cumulative balances of taxpayers’ subsidiary ledgers should total:
taxpayers’ accounts receivable
Increases in liability are:
Credits
An example of a municipal revenue account is:
DOT Trust Fund grant
Increases in assets are:
Debits
In local government the Annual Financial Statement provides:
An unaudited report of the results of the prior years financial operations
When must the Annual Financial Statement be submitted by when and to whom?
February 10 to the Division of Local Government Services
The method of accounting for recording transactions which is used by NJ municipalities is:
Modified accrual basis
An example of a long term asset would be:
New park equipment costing $115,000
Choose correct Journal Entry: Purchased a truck for cash
Debit fixed asset, credit cash
Choose correct Journal Entry: Paid for merchandise previously received and booked
Debit accounts payable, credit cash
Choose correct Journal Entry: Booked $5,000 in cash
Debit cash, credit loans payable
Choose correct Journal Entry: Received payment on a tax payer account, and the payment included interest charges
debit cash, credit tax accounts receivable and interest income
Choose correct Journal Entry: Anytown, NJ ordered merchandise totaling $5,000 on account
Debit encumbrances, credit reserve for encumbrances
Adjusting journal entries are usually found in the:
General Journal
Which of the following is a category or element of the balance sheet?
Liabilities
Assets minus liabilities equals:
Fund Balance
The accounting equation should remain in balance because every transaction affects how many accounts?
Two or more
The accounting method established by the DLGS is:
OCBOA - Other Comprehensive Basis of Accounting
The financial statement with a structure that is similar to the accounting equation is the:
Trial Balance
The full balance remaining in the appropriation at the end of a budget year is held by _____ unless cancelled by __________.
Reserve
Resolution of the governing body
List the funds used in NJ governmental accounting:
Current, Capital, Trust, Utility, Grant
List the original Books of Entry
Payroll Journal, General Journal, General Ledger
True or False - Interfund receivables must be offset by a reserve for receivables except in utility funds
True
True or False - Journal entries are generally made directly to the general ledger
False
True or False- Receipts from the sale of dog licenses are recorded in the current fund of the municipality
False - they go to the Trust Fund
True or False- When Revenue, such as court fines, is received cash is debited
True
