Class II Review

Question 1

The cash receipts journal results in a debit to:

Answer 1

Cash

Question 2

The property owner’s proportionate cost of a sewer line is recorded in the:

Answer 2

Utility assessment trust lien account

Question 3

The method of accounting for recording transactions which is used by NJ municipalities is:

Answer 3

Modified accrual basis

Question 4

Outstanding encumbrances at the end of the budget year are reported as:

Answer 4

A cash liability and are part of the statutory appropriation reserve balance

Question 5

At the end of the second budget year any remaining uncommitted appropriation reserves are

Answer 5

Lapsed and returned to the fund balance through journal entries

Question 6

The difference between the anticipated expenditures in a municipal budget and the amount of anticipated revenue is:

Answer 6

Amount to be raised by taxation

Question 7

The “normal” balance for an asset account is:

Answer 7

Debit

Question 8

Capital items must have a useful life of at least:

Answer 8

5 years

Question 9

A check drawn on the general account to fund a petty cash account results in a ____ to cash

Answer 9

credit

Question 10

The Reserve for Uncollected Taxes is:

Answer 10

An appropriation required by statute to cover the cash flow requirement of the school, county, and municipal obligations

Question 11

The cumulative balances of taxpayers’ subsidiary ledgers should total:

Answer 11

taxpayers’ accounts receivable

Question 12

Increases in liability are:

Answer 12

Credits

Question 13

An example of a municipal revenue account is:

Answer 13

DOT Trust Fund grant

Question 14

Increases in assets are:

Answer 14

Debits

Question 15

In local government the Annual Financial Statement provides:

Answer 15

An unaudited report of the results of the prior years financial operations

Question 16

When must the Annual Financial Statement be submitted by when and to whom?

Answer 16

February 10 to the Division of Local Government Services

Question 17

The method of accounting for recording transactions which is used by NJ municipalities is:

Answer 17

Modified accrual basis

Question 18

An example of a long term asset would be:

Answer 18

New park equipment costing $115,000

Question 19

Choose correct Journal Entry: Purchased a truck for cash

Answer 19

Debit fixed asset, credit cash

Question 20

Choose correct Journal Entry: Paid for merchandise previously received and booked

Answer 20

Debit accounts payable, credit cash

Question 21

Choose correct Journal Entry: Booked $5,000 in cash

Answer 21

Debit cash, credit loans payable

Question 22

Choose correct Journal Entry: Received payment on a tax payer account, and the payment included interest charges

Answer 22

debit cash, credit tax accounts receivable and interest income

Question 23

Choose correct Journal Entry: Anytown, NJ ordered merchandise totaling $5,000 on account

Answer 23

Debit encumbrances, credit reserve for encumbrances

Question 24

Adjusting journal entries are usually found in the:

Answer 24

General Journal

Question 25

Which of the following is a category or element of the balance sheet?

Answer 25

Liabilities

Question 26

Assets minus liabilities equals:

Answer 26

Fund Balance

Question 27

The accounting equation should remain in balance because every transaction affects how many accounts?

Answer 27

Two or more

Question 28

The accounting method established by the DLGS is:

Answer 28

OCBOA - Other Comprehensive Basis of Accounting

Question 29

The financial statement with a structure that is similar to the accounting equation is the:

Answer 29

Trial Balance

Question 30

The full balance remaining in the appropriation at the end of a budget year is held by _____ unless cancelled by __________.

Answer 30

Reserve

Resolution of the governing body

Question 31

List the funds used in NJ governmental accounting:

Answer 31

Current, Capital, Trust, Utility, Grant

Question 32

List the original Books of Entry

Answer 32

Payroll Journal, General Journal, General Ledger

Question 33

True or False - Interfund receivables must be offset by a reserve for receivables except in utility funds

Answer 33

True

Question 34

True or False - Journal entries are generally made directly to the general ledger

Answer 34

False

Question 35

True or False- Receipts from the sale of dog licenses are recorded in the current fund of the municipality

Answer 35

False - they go to the Trust Fund

Question 36

True or False- When Revenue, such as court fines, is received cash is debited

Answer 36

True