Governmental Accounting Ch. 4
questions & answers.
When equipment was purchased with General Fund resources, which of the following accounts would
have been debited in the General Fund? ANS -Expenditures
The City of Marshall uses the PURCHASES METHOD for recording its inventory of supplies in the General
Funds. Rather than using a perpetual inventory system, inventories are updated at year-end based on a
physical count. Physical inventories were $85,000 and $75,000 at December 31, 2013 and 2014,
respectively. The adjusting journal entry on December 31, 2014, will include a: ANS -credit to Inventory
of Supplies for $10,000
Goods for which a purchase order had been placed at an estimated cost of $1,000 were received at an
actual cost of $985. The journal entry in the General Fund to record the receipt of the goods will include
a: ANS -All of the above.
Debit to Encumbrances Outstanding for $1000
Debit to Expenditures for $985
Credit to Vouchers Payable for $985
Which of the following items would be reported as GENERAL Revenue on the government-wide
statement of activities? ANS -Sales taxes earmarked for maintenance of roads and bridges.
Garden City has calculated the General Fund property tax revenues of $4,608,000 are required for the
current fiscal year. Over the past several years, the city has collected 96% of all property taxes levied.
The city levied property taxes in the amount that will generate the required $4,608,000. Which of the
following general journal entries would correctly record the property tax levy? ANS -Debit Tax
Receivable - Current $4,800,000
Credit Estimated Uncollectible Current Taxes $192,000
Credit Revenues $4,608,000
The Village of Wilhelm borrowed $1,000,000 from a local bank by issuing 6% tax anticipation notes. If
the village repaid the tax anticipation notes six months later after collecting its next installment of
questions & answers.
When equipment was purchased with General Fund resources, which of the following accounts would
have been debited in the General Fund? ANS -Expenditures
The City of Marshall uses the PURCHASES METHOD for recording its inventory of supplies in the General
Funds. Rather than using a perpetual inventory system, inventories are updated at year-end based on a
physical count. Physical inventories were $85,000 and $75,000 at December 31, 2013 and 2014,
respectively. The adjusting journal entry on December 31, 2014, will include a: ANS -credit to Inventory
of Supplies for $10,000
Goods for which a purchase order had been placed at an estimated cost of $1,000 were received at an
actual cost of $985. The journal entry in the General Fund to record the receipt of the goods will include
a: ANS -All of the above.
Debit to Encumbrances Outstanding for $1000
Debit to Expenditures for $985
Credit to Vouchers Payable for $985
Which of the following items would be reported as GENERAL Revenue on the government-wide
statement of activities? ANS -Sales taxes earmarked for maintenance of roads and bridges.
Garden City has calculated the General Fund property tax revenues of $4,608,000 are required for the
current fiscal year. Over the past several years, the city has collected 96% of all property taxes levied.
The city levied property taxes in the amount that will generate the required $4,608,000. Which of the
following general journal entries would correctly record the property tax levy? ANS -Debit Tax
Receivable - Current $4,800,000
Credit Estimated Uncollectible Current Taxes $192,000
Credit Revenues $4,608,000
The Village of Wilhelm borrowed $1,000,000 from a local bank by issuing 6% tax anticipation notes. If
the village repaid the tax anticipation notes six months later after collecting its next installment of
