Governmental (State and Local ) Accounting

Question 1

Info

Answer 1

Started on 7 September 2014 @ 11.00 AM
Total questions 110
To do at a time 10,30,
Practice session 95 or so

Question 2

Which of the following accounts should Moon City close at the end of its fiscal year?

Answer 2

When closing its books for the fiscal year-end, Moon City should close all temporary accounts and not balance sheet accounts. This answer, Expenditures, is a temporary account. Balance sheet accounts include Cash Investments, Payables, Fund Balances and Fund Balances Reserved for Encumbrances.

Question 3

Ordered one police car; estimated cost is $17,000. J/E

Answer 3

Encumbrances 17,000

Reserved for Encumbrances 17,000

Question 4

What is the purpose of using encumbrances?

Answer 4

Recording encumbrances prevents overspending line-item appropriations.

Question 5

Gold County received goods that had been approved for purchase but for which payment had not yet been made

Answer 5

Reserved for Encumbrances xx

Encumbrances Control xx

Question 6

Entry at the time of payment.

Answer 6

Expenditures Control 	xx 	 
  	Accounts Payable (cash) 	  	xx

Question 7

Which of the following is a required financial statement for an investment trust fund?

Answer 7

The requirement is to identify the required financial statement for an investment trust fund. This answer is correct because the required statements for an investment trust fund include the statement of fiduciary net position and the statement of changes in fiduciary net position.

Question 8

In the preparation of the statement of activities for a nongovernmental not-for-profit organization, all expenses are reported as decreases in which of the following net position classes?

Answer 8

Unrestricted.

Question 9

According to GASB Concepts Statements which of the following is an essential characteristic of a liability?

Answer 9

A liability is a present obligation to sacrifice resources.

Question 10

Report of property tax in entity-wide statement of activities?

Answer 10

Property tax revenue is presented net of uncollectible amounts.

Question 11

Available funds

Answer 11

appropriations minus expenditures and encumbrances, or $253,000 ($435,000 – $164,000 – $18,000).

Question 12

0055 what is basic financial statement

Answer 12

Need to understand.

Question 13

Dayne County’s general fund had the following disbursements during the year:
Payment of principal on long-term debt is

Answer 13

expenditure

Question 14

For capital project fund when to add up financing and transfer from other funds

Answer 14

Yes

Question 15

which fund records depreciation

Answer 15

close to business unit, Internal Service

Question 16

Revenue that does not relate to a specific purpose goes to

Answer 16

general fund.

Question 17

Which of the following statements are required to be presented for special-purpose governments engaged only in business-type activities (such as utilities)?

Answer 17

Business-type units are accounted for in enterprise funds, which require presentation of enterprise fund statements with MD&A and RSI

Question 18

What is CAFR

Answer 18

Comprehensive Annual Financial Report.

Question 19

What is the major difference between an exchange transaction and a nonexchange transaction for governmental units?

Answer 19

The relationship between the amount of value given and received.

Question 20

The state of Illinois is obligated to fund the pension plans of certain school districts in the state. Which of the following is true about the accounting for this special funding situation?

Answer 20

The obligations are accounted for as pension expense for the state of Illinois.

Question 21

Purchase of fixed assets would be an expenditure on what fund?

Answer 21

General fund.

Question 22

What is derived tax revenue?

Answer 22

Need to understand.

motor fuel taxes are an example of a derived tax revenue.

Question 23

What is elements of service efforts and accomplishments reporting?

Answer 23

Need to understand.
Estimates of accomplishments values.
It is one of the elements of SEA reporting.

Question 24

On the government-wide Statement of Net Position, internal service fund activities are normally reported in

Answer 24

Governmental activities.

Question 25

GRASSP stands for

Answer 25

No

Question 26

SE stands for

Answer 26

no

Question 27

PAPI stands for

Answer 27

no

Question 28

what is the difference between derived revenue and imposed revenue.

Answer 28

no

Question 29

Which of the following accounts of a governmental unit is credited to close it out at the end of the fiscal year?

Appropriations.

Revenues.

Reserved for Encumbrances.

Encumbrances.

Answer 29

This answer is correct. The solutions approach is to prepare a typical closing entry:

Appropriations xx
Expenditures xx
Encumbrances xx
Budgetary Fund Balance xx

The encumbrances account is credited in the above entry.

Question 30

Premiums received on general obligation bonds are generally transferred to what fund?

Answer 30

Debt Service.