Class III Review

Question 1

Encumbrance entries are usually found in the:

Answer 1

Cash disbursements journal

Question 2

The payment of a vendor invoice may be recorded in the:

Answer 2

Cash disbursements journal

Question 3

The General Ledger is the:

Answer 3

Permanent financial record of the local unit

Question 4

True or false - Interfund receivables must be offset by a reserve fir receivables except in utility funds

Answer 4

True

Question 5

Which term is associated with the “left-side”?

Answer 5

Debit

Question 6

Which term is associated with the “right-side”?

Answer 6

Credit

Question 7

When cash is received, the account Cash will be:

Answer 7

Debited

Question 8

When a company pays a bill, the account Cash will be

Answer 8

Credited

Question 9

When a check is written, the municipality’s Cash account should be

Answer 9

Credited

Question 10

When cash is received, the municipality’s Cash account should be

Answer 10

Debited

Question 11

What is the normal balance for an asset account?

Answer 11

Debit

Question 12

What is the normal balance for liability accounts?

Answer 12

Credit

Question 13

What is the normal balance for Fund Balance?

Answer 13

Credit