Governmental (State and Local ) Accounting Flashcards
Info
Started on 7 September 2014 @ 11.00 AM
Total questions 110
To do at a time 10,30,
Practice session 95 or so
Which of the following accounts should Moon City close at the end of its fiscal year?
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.
Ordered one police car; estimated cost is $17,000. J/E
Encumbrances 17,000
Reserved for Encumbrances 17,000
What is the purpose of using encumbrances?
Recording encumbrances prevents overspending line-item appropriations.
Gold County received goods that had been approved for purchase but for which payment had not yet been made
Reserved for Encumbrances xx
Encumbrances Control xx
Entry at the time of payment.
Expenditures Control xx Accounts Payable (cash) xx
Which of the following is a required financial statement for an investment trust fund?
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.
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?
Unrestricted.
According to GASB Concepts Statements which of the following is an essential characteristic of a liability?
A liability is a present obligation to sacrifice resources.
Report of property tax in entity-wide statement of activities?
Property tax revenue is presented net of uncollectible amounts.
Available funds
appropriations minus expenditures and encumbrances, or $253,000 ($435,000 – $164,000 – $18,000).
0055 what is basic financial statement
Need to understand.
Dayne County’s general fund had the following disbursements during the year:
Payment of principal on long-term debt is
expenditure
For capital project fund when to add up financing and transfer from other funds
Yes
which fund records depreciation
close to business unit, Internal Service
Revenue that does not relate to a specific purpose goes to
general fund.
Which of the following statements are required to be presented for special-purpose governments engaged only in business-type activities (such as utilities)?
Business-type units are accounted for in enterprise funds, which require presentation of enterprise fund statements with MD&A and RSI
What is CAFR
Comprehensive Annual Financial Report.
What is the major difference between an exchange transaction and a nonexchange transaction for governmental units?
The relationship between the amount of value given and received.
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?
The obligations are accounted for as pension expense for the state of Illinois.
Purchase of fixed assets would be an expenditure on what fund?
General fund.
What is derived tax revenue?
Need to understand.
motor fuel taxes are an example of a derived tax revenue.
What is elements of service efforts and accomplishments reporting?
Need to understand.
Estimates of accomplishments values.
It is one of the elements of SEA reporting.
On the government-wide Statement of Net Position, internal service fund activities are normally reported in
Governmental activities.
GRASSP stands for
No
SE stands for
no
PAPI stands for
no
what is the difference between derived revenue and imposed revenue.
no
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.
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.
Premiums received on general obligation bonds are generally transferred to what fund?
Debt Service.
