GOVT 407 EXAM 2 FULLY SOLVED TEST PAPER
GRADED A+
◉ The Revenues account of a government is credited when:
A. the budget is recorded in the accounts
B. property taxes are levied
C. property taxes are collected
D. budgetary accounts are closed at the end of the year
Answer: B
◉ Wages that have been earned by the employees of a governmental
unit, but not paid at year-end, should be recorded in the General
Fund by a debit to which of the following accounts?
A. Expenditures
B. Appropriations
C. Encumbrances
D. None of the choices are correct, they are only recorded when
payment is made.
Answer: A
,◉ When a government orders equipment which is to be used by an
activity accounted for by the General Fund, it should be recorded in
the General Fund as a(an):
A. Encumbrance
B. Capital Asset
C. Expenditure
D. None of the choices are correct, the General Fund does not
recognize capital assets.
Answer: A
◉ Which of the following results in an expenditure?
A. Place a purchase order.
B. Receive goods previously ordered.
C. Receive an invoice on goods previously received.
D. Payment of an invoice previously received.
Answer: B
◉ A transaction in which a government receives resources without
directly giving equal value in exchange is known as a(an):
A. Equity Transaction
,B. Fair Exchange
C. Non-exchange Transaction
D. Not Fair Market Exchange Transaction
Answer: C
◉ Property taxes, special assessments, and fines and forfeits are
types of nonexchange transactions. These are examples of:
A. Government-mandated nonexchange transactions.
B. Imposed nonexchange transactions.
C. Deferred Inflows.
D. Voluntary nonexchange transactions.
Answer: B
◉ Which of the following would NOT be a nonexchange transaction
for a state government?
A. Sales of lottery tickets.
B. Property taxes.
C. Fines and forfeits.
D. Income taxes
Answer: A
, ◉ Sales taxes, income taxes, and motor fuel taxes are examples of
which class of nonexchange transactions?
A. Imposed nonexchange transactions.
B. Derived tax revenues.
C. Government-mandated nonexchange transactions.
D. Voluntary nonexchange transactions.
Answer: B
◉ The general ledger journal entry in the General Fund to record the
adoption of a budget would include:
A. A credit to Estimated Other Financing Resources Control.
B. A debit to Budgetary Fund Balance- Reserve for Encumbrances.
C. A debit to Appropriations Control.
D. A debit to Estimated Revenues Control.
Answer: D
◉ Governmental Funds Fund Balance is displayed in which of the
following categories?
GRADED A+
◉ The Revenues account of a government is credited when:
A. the budget is recorded in the accounts
B. property taxes are levied
C. property taxes are collected
D. budgetary accounts are closed at the end of the year
Answer: B
◉ Wages that have been earned by the employees of a governmental
unit, but not paid at year-end, should be recorded in the General
Fund by a debit to which of the following accounts?
A. Expenditures
B. Appropriations
C. Encumbrances
D. None of the choices are correct, they are only recorded when
payment is made.
Answer: A
,◉ When a government orders equipment which is to be used by an
activity accounted for by the General Fund, it should be recorded in
the General Fund as a(an):
A. Encumbrance
B. Capital Asset
C. Expenditure
D. None of the choices are correct, the General Fund does not
recognize capital assets.
Answer: A
◉ Which of the following results in an expenditure?
A. Place a purchase order.
B. Receive goods previously ordered.
C. Receive an invoice on goods previously received.
D. Payment of an invoice previously received.
Answer: B
◉ A transaction in which a government receives resources without
directly giving equal value in exchange is known as a(an):
A. Equity Transaction
,B. Fair Exchange
C. Non-exchange Transaction
D. Not Fair Market Exchange Transaction
Answer: C
◉ Property taxes, special assessments, and fines and forfeits are
types of nonexchange transactions. These are examples of:
A. Government-mandated nonexchange transactions.
B. Imposed nonexchange transactions.
C. Deferred Inflows.
D. Voluntary nonexchange transactions.
Answer: B
◉ Which of the following would NOT be a nonexchange transaction
for a state government?
A. Sales of lottery tickets.
B. Property taxes.
C. Fines and forfeits.
D. Income taxes
Answer: A
, ◉ Sales taxes, income taxes, and motor fuel taxes are examples of
which class of nonexchange transactions?
A. Imposed nonexchange transactions.
B. Derived tax revenues.
C. Government-mandated nonexchange transactions.
D. Voluntary nonexchange transactions.
Answer: B
◉ The general ledger journal entry in the General Fund to record the
adoption of a budget would include:
A. A credit to Estimated Other Financing Resources Control.
B. A debit to Budgetary Fund Balance- Reserve for Encumbrances.
C. A debit to Appropriations Control.
D. A debit to Estimated Revenues Control.
Answer: D
◉ Governmental Funds Fund Balance is displayed in which of the
following categories?
