Governmental Accounting questions
reviewed & correctly answered.
Governmental funds ANS --General Funds
-Special Revenue Funds
-Capital Projects Funds
-Debt Service Funds
-Permanent Funds
Proprietary funds ANS --Enterprise Funds
-Internal Service Funds
Fiduciary funds ANS --Custodial Funds
-Investment Trust Funds
-Private-Purpose Trust Fund
-Pension Trust Fund
The modified accrual basis is a distinct system of accounting that: ANS -Records expenditures and fund
balances.
The purpose of an encumbrance is to prevent governments from: ANS -Spending in Excess of the
Amounts Authorized.
Under modified accrual accounting, budgetary authority expires at year end and the balances of
Revenues and Expenditures are closed to: ANS -Fund Balance
Revenues are raised to finance governmental activities, but revenues may be expended only for
purposes and in amounts approved by the legislative branch in compliance with laws of competent
jurisdictions. This process is known as the: ANS -Appropriations Process
, When liabilities authorized by an appropriation have been incurred, the appropriation is said to be: ANS
-Expended
The difference between an expenditure and an encumbrance is? ANS -An expenditure is the actual
amount of an authorized liability and encumbrances are estimates.
Which of the following is true regarding the final appropriations budget? ANS -It is legal and binding
When a liability is incurred as authorized by an appropriation, the appropriation is said to be: ANS -
Expended
Spendable fund balances ANS -restricted, committed, assigned, unassigned
Restricted Fund Balance ANS -restricted to constraint imposed by third-parties (debt service, restricted
tax revenues)
Committed Fund Balance ANS -The net assets of a fund that can be used only for the specific purposes
determined by the government's highest level of decision-making authority.
Assigned Fund Balance ANS -"A classification of fund balance reported in governmental-type funds to
indicate net resources of the fund that the government intends for a specific purpose. (Constraints are
more easily modified or removed because they are not tied to weight of law)
Unassigned Fund Balance ANS -The net assets of a fund (generally small) available for any purpose;
reported only in the general fund.
The term, Fund Balance, is used to indicate the residual net position of a proprietary fund. (T/F) ANS -
FALSE;
Fund balance is unique to governmental funds. It is the difference between assets and liabilities and
represents the net resources of the fund that are currently available for future spending. Proprietary
funds are not governmental funds.
reviewed & correctly answered.
Governmental funds ANS --General Funds
-Special Revenue Funds
-Capital Projects Funds
-Debt Service Funds
-Permanent Funds
Proprietary funds ANS --Enterprise Funds
-Internal Service Funds
Fiduciary funds ANS --Custodial Funds
-Investment Trust Funds
-Private-Purpose Trust Fund
-Pension Trust Fund
The modified accrual basis is a distinct system of accounting that: ANS -Records expenditures and fund
balances.
The purpose of an encumbrance is to prevent governments from: ANS -Spending in Excess of the
Amounts Authorized.
Under modified accrual accounting, budgetary authority expires at year end and the balances of
Revenues and Expenditures are closed to: ANS -Fund Balance
Revenues are raised to finance governmental activities, but revenues may be expended only for
purposes and in amounts approved by the legislative branch in compliance with laws of competent
jurisdictions. This process is known as the: ANS -Appropriations Process
, When liabilities authorized by an appropriation have been incurred, the appropriation is said to be: ANS
-Expended
The difference between an expenditure and an encumbrance is? ANS -An expenditure is the actual
amount of an authorized liability and encumbrances are estimates.
Which of the following is true regarding the final appropriations budget? ANS -It is legal and binding
When a liability is incurred as authorized by an appropriation, the appropriation is said to be: ANS -
Expended
Spendable fund balances ANS -restricted, committed, assigned, unassigned
Restricted Fund Balance ANS -restricted to constraint imposed by third-parties (debt service, restricted
tax revenues)
Committed Fund Balance ANS -The net assets of a fund that can be used only for the specific purposes
determined by the government's highest level of decision-making authority.
Assigned Fund Balance ANS -"A classification of fund balance reported in governmental-type funds to
indicate net resources of the fund that the government intends for a specific purpose. (Constraints are
more easily modified or removed because they are not tied to weight of law)
Unassigned Fund Balance ANS -The net assets of a fund (generally small) available for any purpose;
reported only in the general fund.
The term, Fund Balance, is used to indicate the residual net position of a proprietary fund. (T/F) ANS -
FALSE;
Fund balance is unique to governmental funds. It is the difference between assets and liabilities and
represents the net resources of the fund that are currently available for future spending. Proprietary
funds are not governmental funds.
