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WGU D023 SCHOOL FINANCIAL
LEADERSHIP EXAM BRAND NEW VERIFIED
QUESTIONS WITH ANSWERS.
Reserved Fund Balance - correct answer -The part of the fund
balance on the balance sheet that indicates that some amounts
are not available for appropriation or expenditure. The creation of
this requires action by governing council. Examples:
encumbrances, petty cash, inventories, advances.
Unreserved Fund Balance - correct answer -The part of the fund
balance on the balance sheet which may be further divided into
Designated and Undesignated funds
designated funds - correct answer -contributions which the donor
has designated to a specific voluntary agency(ies), federation(s),
or general option(s).
undesignated funds - correct answer -funds that have not been
allocated and are available for new expenditures not already
encumbered
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Proprietary Funds - correct answer -Sometimes referred to as
income-determination, business-like, or commercial-type funds of
a state or local government. Examples are enterprise funds and
internal service funds.
Fiduciary Funds - correct answer -The trust and agency funds
used to account for assets held by a government unit in a trustee
capacity or as an agent for individuals, private organizations,
other government units, or other funds.
cost accounting - correct answer -Cost accounting has two
primary values: (1) It provides information for in-school choices
and decisions in the expenditure of funds and (2) costs for the
same services can be compared with those of other schools.
Encumbrance accounting - correct answer -Most common,
created to ensure we don't spend same money twice b/c of a
delay
(a) encumbrances outstanding at year-end should be disclosed in
the notes to the financial statements or by reservation of fund
balance and (b) the subsequent year's appropriations should
provide authority to complete these transactions.
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Where appropriations do not lapse at year-end, or only
unencumbered appropriations lapse, encumbrances outstanding
at year-end should be reported as reservations of fund balance
for subsequent-year expenditures based on the encumbered
appropriation authority carried over.
Accrual Basis Accounting - correct answer -the method of
accounting that recognizes revenue when it is earned and
matches expenses to the revenues they helped produce
-less common, happens at district level
-only used with things like school store
object codes in accounting (what, how, why) - correct answer -t is
helpful to be able to track an individual expenditure by all three of
these methods—object, function, and program, and in the future
perhaps by educational strategy at the school level. In addition, it
is often helpful to track expenditures by the location where the
expenditure is made. Locations usually include the schools in the
district, the central office, and other areas and subareas as
determined by the district.
Hundreds- object codes
Thousands- function codes
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GASB - correct answer -Governmental Accounting Standards
Board
GASB (what, when, responsibilities, impact) - correct answer -
creates accounting handbook
Comprehensive Annual Financial Report - correct answer -
Financial information specific to the school and non-financial
information, which can include economic and demographic
information about the school
Balance Sheet Equation - correct answer -Assets = Liabilities +
Owner's Equity
Balance Sheet - correct answer -A financial statement that reports
assets, liabilities, and owner's equity on a specific date.
Flow of Funds - correct answer -the priority of disbursing the
revenues collected
WGU D023 SCHOOL FINANCIAL
LEADERSHIP EXAM BRAND NEW VERIFIED
QUESTIONS WITH ANSWERS.
Reserved Fund Balance - correct answer -The part of the fund
balance on the balance sheet that indicates that some amounts
are not available for appropriation or expenditure. The creation of
this requires action by governing council. Examples:
encumbrances, petty cash, inventories, advances.
Unreserved Fund Balance - correct answer -The part of the fund
balance on the balance sheet which may be further divided into
Designated and Undesignated funds
designated funds - correct answer -contributions which the donor
has designated to a specific voluntary agency(ies), federation(s),
or general option(s).
undesignated funds - correct answer -funds that have not been
allocated and are available for new expenditures not already
encumbered
, Page | 2
Proprietary Funds - correct answer -Sometimes referred to as
income-determination, business-like, or commercial-type funds of
a state or local government. Examples are enterprise funds and
internal service funds.
Fiduciary Funds - correct answer -The trust and agency funds
used to account for assets held by a government unit in a trustee
capacity or as an agent for individuals, private organizations,
other government units, or other funds.
cost accounting - correct answer -Cost accounting has two
primary values: (1) It provides information for in-school choices
and decisions in the expenditure of funds and (2) costs for the
same services can be compared with those of other schools.
Encumbrance accounting - correct answer -Most common,
created to ensure we don't spend same money twice b/c of a
delay
(a) encumbrances outstanding at year-end should be disclosed in
the notes to the financial statements or by reservation of fund
balance and (b) the subsequent year's appropriations should
provide authority to complete these transactions.
, Page | 3
Where appropriations do not lapse at year-end, or only
unencumbered appropriations lapse, encumbrances outstanding
at year-end should be reported as reservations of fund balance
for subsequent-year expenditures based on the encumbered
appropriation authority carried over.
Accrual Basis Accounting - correct answer -the method of
accounting that recognizes revenue when it is earned and
matches expenses to the revenues they helped produce
-less common, happens at district level
-only used with things like school store
object codes in accounting (what, how, why) - correct answer -t is
helpful to be able to track an individual expenditure by all three of
these methods—object, function, and program, and in the future
perhaps by educational strategy at the school level. In addition, it
is often helpful to track expenditures by the location where the
expenditure is made. Locations usually include the schools in the
district, the central office, and other areas and subareas as
determined by the district.
Hundreds- object codes
Thousands- function codes
, Page | 4
GASB - correct answer -Governmental Accounting Standards
Board
GASB (what, when, responsibilities, impact) - correct answer -
creates accounting handbook
Comprehensive Annual Financial Report - correct answer -
Financial information specific to the school and non-financial
information, which can include economic and demographic
information about the school
Balance Sheet Equation - correct answer -Assets = Liabilities +
Owner's Equity
Balance Sheet - correct answer -A financial statement that reports
assets, liabilities, and owner's equity on a specific date.
Flow of Funds - correct answer -the priority of disbursing the
revenues collected
