FAR 10B

Question 1

When the budgetary accounts are closed at the end of the fiscal year, the estimated revenues control account…

Answer 1

will be credited for the amount for which it was debited when the budget was recorded.

Question 2

For state and local governmental units, generally accepted accounting principles typically require that encumbrances outstanding at year’s end be reported as

Answer 2

Assigned or committed fund balance

Question 3

Encumbrances outstanding at year’s end in a state’s general fund may be reported as a…

Answer 3

Fund balance assigned in the general fund.

Question 4

Encumbrances would not appear in which fund?

Answer 4

Enterprise.

Question 5

The appropriate fund balance classifications are;

Answer 5

Nonspendable Restricted Committed Assigned Unassigned

Question 6

According to GASB Statement No. 54, amounts that can only be used for a specific purpose, because of constraints imposed by formal action of the government’s highest level of decision making authority, should be reported as ____________.

Answer 6

Committed Fund Balance.

Question 7

As of the end of the fiscal year, a Capital Projects Fund has material balances of supplies inventory. Which fund balance classification would reflect the inventory of supplies?

Answer 7

Nonspendable.

Question 8

For general purpose external financial reporting, discrete component unit information:

Answer 8

Is included in the government-wide statements only.

Question 9

Two approaches are used for component units:

Answer 9

(1) discrete presentation in a separate column of the Government-Wide Financial Statements (2) blended with the primary government

Question 10

What is the major difference between an Exchange Transaction and a non-Exchange Transaction for governmental units?

Answer 10

The relationship between the amount of value given and received.

Question 11

Which account should Excel City credit when it issues a purchase order for supplies?

Answer 11

Budgetary Fund Balance.

Question 12

“Supplies” is an expenditure classified at the _________ level.

Answer 12

Object.

Question 13

GASB Statement No. 44 requires that statistical information be presented in five categories:

Answer 13

1. Financial Trends Information 2. Revenue Capacity Information 3. Debt Capacity Information 4. Demographic and Economic Information 5. Operating Information