Day 6 - Encumbrances & Other Transactions Flashcards
Define: Encumbrance
Commit funds for Purchase Orders
Encumbrance is NOT viewed as a GAAP expenditure
The Budgetary Control entry acts as a limitation that reduces the available fund balance
MCQ-00987
Assets (property taxes receivable) associated with unavailable revenues (property taxes collected more than 60 days after YE) should be recorded by crediting:
Deferred Inflow of Resources
Dr - AR
Cr - Deferred Inflows of Resources
MCQ-07265
Define: Reciprocal Interfund Activity
Reciprocal transfers = payments for services provided and used, and loans (an exchange)
“You do something for my fund and I pay you”
MCQ-08277
Define: Non-Reciprocal Interfund Activity
“My fund is just giving you money and I dont expect anything back”
Non-Reciprocal transfers include:
- Interfund transfers
- Interfund reimbursements
MCQ-08277
Define: Restricted Fund Balances
Represent resources whose use has been limited by external sources, such as Laws, Creditors, Contributors (debt covenants)
MCQ-06023
Define: Nonspendable Resources
Resources in the form that cannot be spent, “Not Money Assets” (EX: Inventories, or Prepaids)
MCQ-06023
Define: Committed Fund Balances
Resources that can only be used for a specific purposes pursuant to constraints imposed by formal action of the government
MCQ-06023
Define Assigned Fund Balances
Balances are constrained by government’s intent to be used for a specific purposes, BUT ARE NOT Restricted or Committed
MCQ-06023
Types of Fund Balances: NUCAR
Nonspendable Fund Balance
Unassigned Fund Balance
Committed Fund Balance
Assigned Fund Balance
Restricted Fund Balance
MCQ-06023
Park City incurred salaries and wages of $800k in the general fund, what is the JE to record this?
Dr - Expenditures Control
Cr - Vouchers Payable
MCQ-01137
A Budgetary Control account balance in excess of a balance of Encumbrances indicates:
A recording error
MCQ-00979
The Available Appropriations equal:
BAE
Budgeted appropriations
Actual expenditures
Encumbrances
= Available Appropriations
MCQ-08715
Interfund transfers received by a governmental-type fund should be reported in the Stmt of Revenues, Expenditures, and changes in Fund Balance as an:
Other Financing Source
MCQ-01005
A city council designates funds in the enterprise fund for future equipment replacement. The enterprise fund should report this as:
An Unrestricted Component of Net Position
Net Position will include classifications for investment in capital assets net of related debts
MCQ-08518
