Transactions and Events (Gov't Funds) (F9:M3-4)

Question 1

sales taxes are what kind of revenue?

Answer 1

derived non-exchange tax revenue

Question 2

property taxes and fines are what kind of revenue?

Answer 2

imposed non-exchange revenue

Question 3

general obligation bonds were issued at par

Answer 3

cash (d)

other financing sources (c)

Question 4

approved purchase orders were issued for supplies

Answer 4

encumbrances (d)
budgetary control (c)

Question 5

ordered supplies were received and invoices were approved

Answer 5

budgetary control (d
encumbrances (c

expenditures (d
vouchers payable (c

Question 6

general fund salaries and wages were incurred

Answer 6

expenditures (d
vouchers payable (c

Question 7

revenues were earned from a previously awarded grant

Answer 7

deferred inflow of resources (d
grant revenue (c

Question 8

property taxes collected in advance

Answer 8

cash (d

deferred inflows of resources (c

Question 9

appropriations recorded on adoption of budget

Answer 9

estimated revenues (d
appropriation control (c

Question 10

ST financing received from a bank secured by the city’s taxing power

Answer 10

cash (d

tax anticipation notes payable (c

Question 11

there was an excess of estimated inflows over estimated outflows

Answer 11

estimated revenues (d
appropriations (c
budgetary control (c

Question 12

what are the categories of fund balance (5)?

Answer 12

non spendable (prepaid expenditures, inventory, etc)

restricted (restricted by external parties. e.g., legislation, grantors, creditors)

committed (most restrictive. e.g., encumbered appropriations)

assigned (government intends to obligate, but has not formally committed)

unassigned (only general fund should have positive unassigned fund balance)

Question 13

what is the difference between special items and extraordinary items?

Answer 13

special: unusual in nature OR infrequent in occurrence (event must be in the control of management. e.g., the sale of property)
extraordinary: unusual AND infrequent (e.g., environmental disaster)

Question 14

essentially, what is a deferred inflow of resources?

how about a deferred outflow of resources?

Answer 14

revenue to be recognized in the future (similar to liability)

expense to be recognized in the future (similar to asset)