Modified Accrual Accounting

Question 1

______ tax revenues represent taxes imposed on or derived from exchange transactions such as commercial sales (sales taxes).

Answer 1

derived

Question 2

________ non-exchange revenues include property taxes and fines.

Answer 2

imposed

Question 3

A _____ ______ demonstrates interperiod equity, which is a significant part of accountability

Answer 3

balanced budget

Question 4

The ________ control account is increased when property taxes are levied.

Answer 4

revenue

Question 5

The estimated revenues control account of a governmental unit is debited when the budget is ______

Answer 5

recorded

Question 6

The encumbrance account of a governmental unit is debited when a ______ _______ is approved

Answer 6

purchase order

Question 7

_______ are credited and Property Taxes Receivable are debited when taxpayers are billed for property taxes

Answer 7

revenues

Question 8

_____ _____ are not expected to contribute to the generation of revenue and are therefore treated as an expenditure. This will serve to reduce the excess of revenue over expenditures.

Answer 8

fixed assets

Question 9

An ________ transaction is a reciprocal transfer in which each party receives and sacrifices something of approximately equal value. A _______ transaction involves giving/receiving value without receiving/giving equal value in return.

Answer 9

exchange; non-exchange

Question 10

Modified accrual accounting only applies to:

Answer 10

GRaSPP

Question 11

There is no ______ motive in any governmental fund, thus there is no ______ ________

Answer 11

profit; income determination

Question 12

______ accounting is emphasized in order to control spending

Answer 12

budgetary

Question 13

________ emphasizes flow of current financial resources

Answer 13

activity

Question 14

_________ accounting is used to record purchase orders

Answer 14

encumbrance

Question 15

BAE BAE

Answer 15

book to budget, close to budget (for the same amount)
book to activity, close to activity (for the same amount)
book to encumbrance, close to encumbrance (for the same amount)

Question 16

Taxes - income and sales, taxes- property and real estate, and fines and penalties are _______

Answer 16

revenues

Question 17

Debt proceeds and interfund transfers are ______ financing sources

Answer 17

other

Question 18

Budgeting accounting JEs are only booked ______ a year

Answer 18

twice (BAE-BAE)

Question 19

Estimated revenue control, estimated other financing sources, and budgetary control (negative) are ______ for the budgeting JESs

Answer 19

debits

Question 20

Appropriations control (approved spending),estimated other financing uses, budgetary control (positive) are _______ for the budgeting JEs

Answer 20

credits

Question 21

At the end of the year, the budget is ______ and closed

Answer 21

reversed

Question 22

For activity, there is no application of the ______ _______

Answer 22

matching principle

Question 23

Governmental fund revenues are recorded when _______ and _______

Answer 23

measurable; available

Question 24

Revenues are available when the collection period does not exceed ____ days after fiscal year end

Answer 24

60

Question 25

Real estate taxes and fines and penalties are revenue when _____

Answer 25

billed/recorded

Question 26

Real estate taxes and fines and penalties are ______ non-exchange revenues

Answer 26

imposed

Question 27

Income taxes and sales taxes are revenue when _______

Answer 27

received

Question 28

Income taxes and sales taxes are ______ tax revenue

Answer 28

derived

Question 29

Capital purchases, operating expenditures, and debt service payments are treated as current year _________

Answer 29

expenditures

Question 30

When an expenditure is debited, either ______ _______ or cash is credited

Answer 30

vouchers payable

Question 31

When a voucher payable is recorded, an _________ exists

Answer 31

expenditure

Question 32

Under the purchase method, an expenditure is recorded when the item is _______

Answer 32

purchased

Question 33

Under the consumption method, an expenditure is recorded when the item is _____

Answer 33

used

Question 34

Transfers between funds are not an expenditure, but instead are recorded as ______ _______ ____

Answer 34

other financing uses

Question 35

Object classes are like a:

Answer 35

chart of accounts

Question 36

Fixed assets are not capitalized and depreciated, instead their purchase is recorded as an _______

Answer 36

expenditure

Question 37

Proceeds from long-term debts are recorded in the governmental funds as ______ _______ _____

Answer 37

other financing sources

Question 38

Repayments of long-term debts are recorded as _____ of both principal and interest

Answer 38

expenditures

Question 39

Commit funds for purchase orders

Answer 39

encumbrances

Question 40

JE for booking an encumbrance:

Answer 40

DR: encumbrance
CR: budgetary control

Question 41

Encumbrances will not be specifically detailed on the face of the financial statements but may be ________ if material

Answer 41

disclosed