WGU C252 Practice Questions Chapter 4 | Questions and Correct Solutions

WGU C252 Practice Questions Chapter 4 | Questions and Correct Solutions 1. A city's General Fund general ledger includes accounts called Estimated Revenues, Appropriations, and Encumbrances. This indicates that the city a. Formally integrates its budget into its accounts b. Uses a cash plus encumbrances basis of accounting c. Maintains its accounts on an accrual basis d. Erroneously reports encumbrances as expenditures - Answer -Formally integrates its budget into its accounts. 2. Under an encumbrance system, which account is debited when a purchase order is issued? a. Expenditures b. Appropriations c. Encumbrances d. Encumbrances Outstanding - Answer -Encumbrances. 3. As part of a government's basic financial statements and required supplementary information, a budgetary comparison statement or schedule should be presented as a. A basic Financial statement b. In the other information section of the CAFR c. Replace expense accounting in governments. d. Prevent government waste - Answer -A basic financial statement. 4. The purpose of encumbrance accounting is to a. Manage a g