Governmental Accounting questions
and answers.
What are the three major types of funds in governmental accounting ANS -Governmental, Proprietary,
Fiduciary
Which two accounting bases are used in governmental accounting ANS -"Accrual basis - current
economic resources focus (revenues recognized when earned). Modified accrual basis - current financial
resources focus (revenues recognized when available and measurable)"
What is a budget appropriation ANS -The highest amount allowed for a particular expenditure under a
budget.
What is an encumbrance ANS -Records purchase and reserves it for the encumbrance.
What is the opening budgetary entry ANS -"Dr Estimated Revenues Control-Cr Appropriations Control.
Dr/Cr Budgetary Fund Balance (plug)"
What is the closing budgetary entry ANS -"Dr Appropriations Control-Dr/Cr Budgetary Fund Balance
(plug) Cr Estimated Revenues Control"
What are the types of governmental funds ANS --"General Fund, Special Revenue Fund, Permanent
Fund, Capital Projects Fund, Debt Service Fund"
What is a General Fund ANS -"The operating fund of the governmental unit, Records Significant
Revenues: Taxes; Tickets; Fines; Licenses, Records Significant Expenditures: Police; Education; Fire Dept"
What is a Special Revenue Fund ANS -Restricted for a specific purpose such as street repair.
What is a Permanent Fund ANS -"Legally restricted fund; where only earnings can be used to fund
programs. Principal remains intact."
and answers.
What are the three major types of funds in governmental accounting ANS -Governmental, Proprietary,
Fiduciary
Which two accounting bases are used in governmental accounting ANS -"Accrual basis - current
economic resources focus (revenues recognized when earned). Modified accrual basis - current financial
resources focus (revenues recognized when available and measurable)"
What is a budget appropriation ANS -The highest amount allowed for a particular expenditure under a
budget.
What is an encumbrance ANS -Records purchase and reserves it for the encumbrance.
What is the opening budgetary entry ANS -"Dr Estimated Revenues Control-Cr Appropriations Control.
Dr/Cr Budgetary Fund Balance (plug)"
What is the closing budgetary entry ANS -"Dr Appropriations Control-Dr/Cr Budgetary Fund Balance
(plug) Cr Estimated Revenues Control"
What are the types of governmental funds ANS --"General Fund, Special Revenue Fund, Permanent
Fund, Capital Projects Fund, Debt Service Fund"
What is a General Fund ANS -"The operating fund of the governmental unit, Records Significant
Revenues: Taxes; Tickets; Fines; Licenses, Records Significant Expenditures: Police; Education; Fire Dept"
What is a Special Revenue Fund ANS -Restricted for a specific purpose such as street repair.
What is a Permanent Fund ANS -"Legally restricted fund; where only earnings can be used to fund
programs. Principal remains intact."
