WGU C252 Practice Questions Chapter 3 | Questions and Verified Answers

WGU C252 Practice Questions Chapter 3 | Questions and Verified Answers 1. Which of the following is not a characteristic of the General Fund? a. Is used to account for all financial resources that are not required to be accounted for in another fund. b. Is used by all governments that report governmental fund activities. c. May require combining statement at year-end when a government has more than one General Fund. d. Is established at inception of a government and exists throughout its life. - Answer -c. May require combining statement at year-end when a government has more than one General Fund. 2. Employees of the City of Calderwood are paid from the General Fund. These employees are paid for amounts earned over a two week period. The amount due to the employees is disbursed one week later. The last payroll period in December ended December 27, 20X2. The fiscal year ended December 31, 20X2. The employees were paid January 3, 20X3. The salaries earned should be reported as expenditures a. In the current year in all cases. b. In the current year if paid within the first 60 days of the next year. c. In the next year in all cases. d. In either the current year or in the next year depending upon the government's policy. The policy must be applied consistently. - Answer -a. In the current year in all cases. 3. The city of Brittainville's Special Revenue Fund levied $350,000 in taxes, of which 1% was expected to be uncollectible during the current year. Also during the year, the fund collected $7,500 of interest revenue and $50,000 was transferred from the General Fund. As a result of these transactions fund balance will increase b