Chapter 3 Homework--Activities PDF

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Chapter 3 Homework--Activities...

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Which of the following best describes the recommended format for the government-wide statement of activities? A. Revenues minus expenses equals change in net position. B. Revenues minus expenditures and outstanding encumbrances equals change in net position. C. Expenses minus program revenues equals net (expense) revenue. Net (expense) revenue plus general revenues equals change in net position. D. Program revenues minus expenses minus general revenues equals changes in net position.

Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? A. Report as a general expense in the bottom section of the statement of activities. B. Report as a direct expense of the function or program with which the related depreciable assets are identified. C. Report as an indirect expense on a separate line if the depreciable assets benefit all functions or programs. D. Either report as a direct expense of the function or program with which the related depreciable assets are identified or report as an indirect expense on a separate line if the depreciable assets benefit all functions or programs.

Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? A. B. C. D.

Expenditures. Revenues. Encumbrances. Other financing sources.

When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? A. B. C. D.

Property owned by governments. Property exempted from taxation by the government. Property used by religious or charitable organizations. All these answer options are correct.

Which of the following statements is true for other financing uses but is not true for expenditures? A. B. C. D.

Arise from interfund transfers out. Decrease fund balances when they are closed at year-end. Are included on the budgetary comparison schedule. Have normal debit balances.

An internal allocation of funds on a periodic basis, which is often used to regulate the use of appropriations over a budgetary period, is called A. B. C. D.

An encumbrance. A budgetary levy. An ad valorem assessment. An allotment.

According to GASB standards, expenditures are classified by A. B. C. D.

Fund, function or program, organization unit, source, and character. Fund, function or program, organization unit, activity, character, and object. Fund, appropriation, organization unit, activity, character, and object. Fund, organization unit, encumbrance, activity, character, and object.

Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of A. B. C. D.

Required supplementary information (RSI). Basic financial statements. Note disclosures. Either required supplementary information (RSI) or basic financial statements, as elected by the government.

Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. This type of budgetary control is achieved by reviewing: A. B. C. D.

Appropriations minus expenditures. Appropriations plus expenditures minus outstanding encumbrances. Appropriations minus the sum of expenditures and outstanding encumbrances. Appropriations minus estimated revenues.

Spruce City’s finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000. Which of the following is the correct journal entry to record the budget?

A. B. C. D.

Option A Option B Option C Option D

The following information is provided about the Town of York’s General Fund operating statement and budgetary accounts for the fiscal year ended September 30. (Note: The town has no restricted, committed, or assigned fund balances.)

a. Prepare the journal entry to record the budget.

b. Did the Town of York engage in imprudent budgeting practice by authorizing a greater amount of expenditures than revenues estimated for the year, or potentially violate town or state balancedbudget laws? NO c. Calculate the end-of-year balance for the Fund Balance—Unassigned that would be reported on the town’s balance sheet prepared as of September 30.

The Town of Willingdon adopted the following General Fund budget for the fiscal year beginning July 1:

a. Prepare the general journal entries to record the adopted budget at the beginning of the fiscal year.

b.

Show entries in the subsidiary ledger accounts....