Transactions & Events - unique issues

Question 1

What are revenue sources of governmental fund ?

Answer 1

A) Public safety : fees and fines
B) Imposed taxes
C) other revenue from investment
D) Intergovernmental : share with other fund a grant
E) Operating income from charges of services

Question 2

What are the types of Gov. general fund expenditures ?

Answer 2

A ) Gov. general admin expenses
B) Public safety
C) Culture and recreation

Question 3

What accounting system the general fund use ?

Answer 3

Modified Accrual

Question 4

Which fund that his life is limited to one - three years ?

Answer 4

Capital project fund is used only during construction phase

Question 5

What is Capital Grant ?

Answer 5

is a grant given to capital fund for purpose of construction of capital asset

Question 6

How to account for capital grants given to capital fund ?

Answer 6

A) if restricted the the grant is recorded as liability until earned ( expended or fulfill time requirement ) then the liability is transferred to revenue when earned.

B)Not restricted : recognized as revenue upon receiving .