Government Accountiing

Question 1

What is the JE to record accrual of property taxes when levied?

Answer 1

DR> Real Property Taxes Payable
CR> Revenues - Property taxes
CR> Allowance for uncollectible taxes rec

Question 2

What is JE at end of period assuming more taxes are delinquent than expected based on original allowance for uncollectible taxes?

Answer 2

DR> Revenues - Property Taxes
DR> Allowance for uncollectible taxes - current
CR> Allowance for uncollectible taxes -delinquent

Question 3

What is the JE to record setting of budget at beginning of year?

Answer 3

DR>  Estimated Revenue - Control
DR>  Estimated other fin sources
DR>  Budgetary Control
      CR>  Appropriations Control
      CR>  Estimated fin Sources
      CR>  Budgetary Control

Question 4

What is the JE to record purchase order when authorized?

Answer 4

DR> Encumbrances

CR> Budgetary Control

Question 5

What is the JE/s to recognize receipt of invoice for which a purchased order had previously been authorized?

Answer 5

DR> Budgetary Control
CR> Encumbrances

DR> Expenditures
CR> Vouchers Payable

Question 6

Under the purchase method, what entries are made to recognize the purchase, use and ending inventory?

Answer 6

At purchase:
DR> Expenditure
CR> Vouchers payable

Use of item:
>No entry<

On-hand at year end:
DR> Supplies Inventory
CR> Non-spendable Fund balance- inventory

Question 7

Under the consumption method, what entries are made to recognize the purchase, use and ending inventory?

Answer 7

At purchase:
DR> Supplies Inventory
CR> Vouchers payable

Use of item:
DR> Expenditure
CR> Supplies Inventory

On-hand at year end:
>No entry<

Question 8

Do deferred outflows have a positive or negative effect on net position/fund balance?

Answer 8

Positive.

Deferred outflow is similar to a prepaid expense and represents consumption of net assets that will take place in a future period.

Question 9

What is the primary focus of government wide financial statements?
What is the focus of fund financial statements?

Answer 9

Gov’t Wide– Operational accountability (have they met their goals effectively and efficiently)
Fund – Fiscal accountability

Question 10

What budgetary schedules are required supplementary information according to GASB 34?

Answer 10

Budgetary comparison schedules must show:

• the original budget
• final amended budget
• actual amounts

Question 11

On the statement of cash flows pertaining to governmental funds, what is the difference b/t non-capital and capital financing activities?

Answer 11

Non-capital activities anticipate the cash flows associated with borrowing and lending related to sustaining operations.
Capital activities anticipate cash flows associated with borrowing and lending related to long-lived assets.

Question 12

Under GASB 34, what statements make up the basic financial statements?

Answer 12

• Government wide F/S (statement of net position and statement of activities)
• Fund F/S (gov’t - B/S and statement of rev, expenditures & changes in funds balances; Proprietary (statement of net position & statement of rev, expenses, and changes in fund balance; Fiduciary (statement of fiduciary net position & statement of changes in Fiduciary net position)

Question 13

A government’s CAFR is divided up into what three sections?

Answer 13

• Introductory
• Basic F/S and Required Supplementary Info
• Statistical

Question 14

Government wide F/S should classify net assets as:

Answer 14

• Net investment in capital assets
• Restricted
• Unrestricted

Question 15

In the gov’t side F/S, what are the three category types of program revenue?

Answer 15

• Charges for Services
• Operating gains and Contributions
• Capital Grants and Contributions