GOVT 407 EXAM 2 COMPLETE STUDY GUIDE
WITH SOLVED QUESTIONS
◉ In the governmental funds balance sheet for a special revenue
fund, positive fund balances are displayed in which of the following
categories?
A. Nonspendable, Restricted, Committed, Assigned, Unassigned
B. Nonspendable, Restricted, Committed, Assigned
C. Spendable, Assigned, Unassigned
D. Net Investment in Capital Assets, Restricted, Unrestricted
Answer: B
◉ In a budgetary entry, if Estimated Revenues Control exceeds
Appropriations Control, the excess would be:
A. debited to Budgetary Fund Balance
B. credited to Budgetary Fund Balance
C. credited to Fund Balance- Unassigned
D. credited to Fund Balance- Reserved for Encumbrances
Answer: B
,◉ All of the following are budgetary accounts except:
A. Other Financing Resources
B. Appropriations
C. Encumbrances
D. All of the choices are correct.
Answer: A
◉ The Budgetary Fund Balance -- Reserve for Encumbrances
account is properly considered to be a(an):
A. current liability
B. expenditure
C. long-term liability
D. None of the answer choices are correct.
Answer: D
◉ Revenues in governmental fund accounting:
A. include taxes, fees, resources provided by other governments, and
inter fund transfers
B. are recognized in the fiscal year they are available and measurable
,C. are recognized when earned and can be reasonably estimated
D. are recognized in the fiscal year in which they were budgeted
Answer: B
◉ 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):
WITH SOLVED QUESTIONS
◉ In the governmental funds balance sheet for a special revenue
fund, positive fund balances are displayed in which of the following
categories?
A. Nonspendable, Restricted, Committed, Assigned, Unassigned
B. Nonspendable, Restricted, Committed, Assigned
C. Spendable, Assigned, Unassigned
D. Net Investment in Capital Assets, Restricted, Unrestricted
Answer: B
◉ In a budgetary entry, if Estimated Revenues Control exceeds
Appropriations Control, the excess would be:
A. debited to Budgetary Fund Balance
B. credited to Budgetary Fund Balance
C. credited to Fund Balance- Unassigned
D. credited to Fund Balance- Reserved for Encumbrances
Answer: B
,◉ All of the following are budgetary accounts except:
A. Other Financing Resources
B. Appropriations
C. Encumbrances
D. All of the choices are correct.
Answer: A
◉ The Budgetary Fund Balance -- Reserve for Encumbrances
account is properly considered to be a(an):
A. current liability
B. expenditure
C. long-term liability
D. None of the answer choices are correct.
Answer: D
◉ Revenues in governmental fund accounting:
A. include taxes, fees, resources provided by other governments, and
inter fund transfers
B. are recognized in the fiscal year they are available and measurable
,C. are recognized when earned and can be reasonably estimated
D. are recognized in the fiscal year in which they were budgeted
Answer: B
◉ 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):
