CGFM EXAM 2 Study Exam Questions
with 100% Correct Answers
Non-Spendable Fund Balance - Answer-Assets not in spendable form-Inventories and
prepaid items, principal of a permanent fund which may not be spent, and assets held
for sale and long-term receivables. Examples: Supplies, inventory, membership fees
Restricted Fund Balance - Answer-Subject to constraints imposed by external parties or
law. Debt covenants (such as a requirement for a sinking fund) or constraints imposed
by legislation or federal and state agencies, creditors, contributors or granting agencies
Three Categories of net position section of the government-wide Statement of Net
Position - Answer-Restricted, Committed & Assigned
Committed Fund Balance - Answer-Governing body formally committed net resources
to specific activities. Contractual obligations outstanding. Board approval of large
construction contracts would typically represent commitment of the funds.
Assigned Fund Balance - Answer-Residual balances in funds other than the General
Fund or in the general fund that are intended for identified purposes
Difference between Committed and Restricted - Answer-Committed constraint is
imposed by a government upon itself
GASB standards state that rainy day funds may be classified as committed only under
specific circumstances which are - Answer-they are created by a resolution or ordinance
that identifies the specific circumstances under which the resources may be expended
Other financing sources consist of - Answer-transfers in from other funds and proceeds
of long-term borrowing
Fund Revenues consist of - Answer-taxes, charges for services, amounts provided by
other entities such as state or federal government
Other fund uses - Answer-Transfers of cash out of one fund to other funds
To recognize revenue from the General Fund transferred to a debt service fund to
record payments of interest and principal on general obligation debt - Answer-Credit
General Fund Tax Revenue
Debit General Fund Other Financing Uses-Transfers Out
Debit Debt Service Fund Other Financing Sources - Transfer In
Credit Debt Service Fund Expenditures
, Fund Budgetary Accounts - Answer-Estimated Revenues, Appropriations, Estimated
Other Financing Sources, Estimated Other Financing Uses, Encumbrances
Fund Activity Accounts - Answer-Revenues, Expenditures, Other Financing Sources,
Other Financing Uses
Fund Revenues - Answer-Tax Revenues, Charges for Services
Fund Expenditures - Answer-Current, Capital Outlay, Debt Service
Other Financing Sources - Answer-Transfers In, Debt Proceeds
Other Financing Uses - Answer-Transfers Out
When a PO or Contract is issued as authorized by an appropriation the government
recognizes this commitment as - Answer-An encumbrance (not yet a liability)
JE for City Council approves fiscal year budget for General Fund
JE for Financial Statement Accounts - Answer-DR Estimated Revenues
CR Appropriations
Budgetary Fund Balance is a CR
NONE
JE for City Departments issue PO for goods and services
JE for Financial Statement Accounts - Answer-DR Encumbrances Control
CR Budgetary Fund Balance Reserve for Encumbrances (To Establish the
Encumbrance)
NONE
JE for Goods and Services are received and invoices are presented for payment
JE for Financial Statement Accounts - Answer-DR Budgetary Fund Balance Reserve for
Encumbrances
CR Encumbrances Control
DR Expenditures (Current)
CR Accounts Payable (to Record the Liability)
Common form of nonexchange transactions - Answer-tax revenue and
intergovernmental grants
Nonexchange transaction eligibility requrements -
Answer-Characteristics/Time/Reimbursement/Contingencies-Matching funds
Imposed nonexchange transactions - Answer-taxes and other assessments imposed by
governemnts not derived from underlying transactions. (Property Tax, special
assessments, fines and forfeits)
with 100% Correct Answers
Non-Spendable Fund Balance - Answer-Assets not in spendable form-Inventories and
prepaid items, principal of a permanent fund which may not be spent, and assets held
for sale and long-term receivables. Examples: Supplies, inventory, membership fees
Restricted Fund Balance - Answer-Subject to constraints imposed by external parties or
law. Debt covenants (such as a requirement for a sinking fund) or constraints imposed
by legislation or federal and state agencies, creditors, contributors or granting agencies
Three Categories of net position section of the government-wide Statement of Net
Position - Answer-Restricted, Committed & Assigned
Committed Fund Balance - Answer-Governing body formally committed net resources
to specific activities. Contractual obligations outstanding. Board approval of large
construction contracts would typically represent commitment of the funds.
Assigned Fund Balance - Answer-Residual balances in funds other than the General
Fund or in the general fund that are intended for identified purposes
Difference between Committed and Restricted - Answer-Committed constraint is
imposed by a government upon itself
GASB standards state that rainy day funds may be classified as committed only under
specific circumstances which are - Answer-they are created by a resolution or ordinance
that identifies the specific circumstances under which the resources may be expended
Other financing sources consist of - Answer-transfers in from other funds and proceeds
of long-term borrowing
Fund Revenues consist of - Answer-taxes, charges for services, amounts provided by
other entities such as state or federal government
Other fund uses - Answer-Transfers of cash out of one fund to other funds
To recognize revenue from the General Fund transferred to a debt service fund to
record payments of interest and principal on general obligation debt - Answer-Credit
General Fund Tax Revenue
Debit General Fund Other Financing Uses-Transfers Out
Debit Debt Service Fund Other Financing Sources - Transfer In
Credit Debt Service Fund Expenditures
, Fund Budgetary Accounts - Answer-Estimated Revenues, Appropriations, Estimated
Other Financing Sources, Estimated Other Financing Uses, Encumbrances
Fund Activity Accounts - Answer-Revenues, Expenditures, Other Financing Sources,
Other Financing Uses
Fund Revenues - Answer-Tax Revenues, Charges for Services
Fund Expenditures - Answer-Current, Capital Outlay, Debt Service
Other Financing Sources - Answer-Transfers In, Debt Proceeds
Other Financing Uses - Answer-Transfers Out
When a PO or Contract is issued as authorized by an appropriation the government
recognizes this commitment as - Answer-An encumbrance (not yet a liability)
JE for City Council approves fiscal year budget for General Fund
JE for Financial Statement Accounts - Answer-DR Estimated Revenues
CR Appropriations
Budgetary Fund Balance is a CR
NONE
JE for City Departments issue PO for goods and services
JE for Financial Statement Accounts - Answer-DR Encumbrances Control
CR Budgetary Fund Balance Reserve for Encumbrances (To Establish the
Encumbrance)
NONE
JE for Goods and Services are received and invoices are presented for payment
JE for Financial Statement Accounts - Answer-DR Budgetary Fund Balance Reserve for
Encumbrances
CR Encumbrances Control
DR Expenditures (Current)
CR Accounts Payable (to Record the Liability)
Common form of nonexchange transactions - Answer-tax revenue and
intergovernmental grants
Nonexchange transaction eligibility requrements -
Answer-Characteristics/Time/Reimbursement/Contingencies-Matching funds
Imposed nonexchange transactions - Answer-taxes and other assessments imposed by
governemnts not derived from underlying transactions. (Property Tax, special
assessments, fines and forfeits)
