Which of the following best describes the proper treatment for uncollectible amounts of taxes?

Equipment acquired several years ago by a capital projects fund and reported in the government activities statement of net position at a net book value $2,000 was sold for $1,000 cash. Cash is collected in the General Fund. Journal entries are necessary i

General fund and governmental activities

A tourist tax that is restricted for use on maintenance projects in the historic downtown district should be recorded as general revenues in the governmental activities journal.True

False

A properly prepared schedule of revenues, expenditures, and changes in fund balances-budget and actual will include which of the following columns?-Actual revenue and expenditure amounts on the GAAP basis.-Encumbrances outstanding at year-end.

-Actual r

Actual revenue and expenditure amounts on the budget basis

Property taxes due 75 days after the end of the 2017 fiscal year would be recognized in 2017 as revenues in the General Fund general journal.True

False

An interfund transfer occurs when one fund of government pays another fund of the same government for services provided.True

False

Using the information below, what amount should be accounted for in a special revenue fund or funds?Warehouse equipment used to store supplies for delivery to all city departments and agencies on a cost-reimbursement basis$ 300,000

Equipment used for su

Which of the following types of nonexchange transactions recognize revenue when all the eligibility requirements are met?-Voluntary nonexchange transactions.-Imposed nonexchange transactions.-Property tax revenues.

-Derived tax revenues.

Voluntary nonexchange transactions

Which of the following best describes the proper treatment for uncollectible amounts of taxes?-Report as deferred inflow of resources.-Report as bad debt expense.-Report receivables net of uncollectible amounts.

-Report as bad debt expenditures.

Report receivables net of uncollectible amounts

Permanent funds use the modified accrual basis of accounting.True

False

Which of the following would be considered an internal exchange transaction?-The Capital Projects Fund completes a library building project and transfers the remaining cash to the Debt Service Fund.

-The General Fund transfers $125,000 to the Debt Servic

The General Fund transfers $9,000 to the Central Supplies Fund for supplies it received from Central Supplies.

The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of the city). The General Fund general journal entry to record the transaction will include:-A debit to Expenses.-A debit to Expenditures.

-A debit to Inte

Under the modified accrual basis of accounting applicable to governmental fund types, property tax revenue is accrued and recorded at net realizable value.True

False

If state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by GAAP, then the budgetary comparison schedule or statements should
-Not be included as part

Be included with the actual figures presented on the budget basis and then reconciled to the GAAP basis

Under the consumption method for recording supplies that are maintained on a perpetual inventory system, the adjusting entry made at year end would affect which of the following accounts?-Fund Balance-Nonspendable-Inventory of Supplies.

-Fund Balance-Res

Fund Balance-Nonspendable-Inventory of Supplies

Fines and forfeits are reported as charges for services on the government-wide statement of activities.True

False

If the actual liability for goods received in the current year differs from the estimated liability recorded when the goods were ordered in the prior year, the Encumbrances account should be credited in the amount of the estimated liability.True

False

At the end of the fiscal year, the purchases method of recording inventory adjusts the Expenditures account to reflect the amount of inventory actually used during the period.True

False

The General Fund is used to account for:-Revenues and expenditures legally restricted to a specific purpose.-The accumulation of resources to pay for principal and interest on the current portion of long-term debt.

-Construction of major capital assets.

General administration of the government

Which of the following is not a program revenues classification used in the governmental activities journal and reported in the government-wide statement of activities?-User fees.-Operating grants and contributions.-Charges for services.

-Capital grant

Which of the following accounts would not be closed at the end of each fiscal year?-Fund balance.-Estimated revenues.-Interfund transfers out.

-Expenditures.

-Actual revenue and expenditure amounts on the b

Actual revenue and expenditure amounts on the budget basis

Which of the following transactions is classified as an exchange transaction?-Property taxes.-Fees charged by a municipal airport.-Bequest left to the city by a wealthy citizen.

-State grant to conduct an after school program for children.

Fees charged by a municipal airport

The General Fund has transferred cash to the appropriate fund for eventual retirement of term bonds maturing in 10 years. Which funds would record this transaction?(1st)General Fund (2)Capital Projects Fund (3) Debt Service FundA) Yes No Yes

B) No No Ye

The governmental funds operating statement presents all of the following except-Expenditures.-Other financing sources.-Revenues.

-Encumbrances.

Supplies recorded in the General Fund under the purchases method will initially include a-Debit to Inventory of Supplies.-Credit to Fund Balance-Restricted-Inventory of Supplies.-Debit to Expenditures.

-Debit to Fund Balance-Restricted-Inventory of Sup

The Revenues account of a government is debited when:-The budget is recorded at the beginning of the year.-Property taxes are recorded.-The account is closed to fund balance-unassigned at the end of the year.

-Property taxes are collected.

The account is closed to fund balance-unassigned at the end of the year

Grant funds received before time requirements are met, but after all other eligibility requirements have been met, should be reported as an asset and a deferred inflow of resources by the recipient.True

False

Vehicles used by the Culture and Recreation Department should be reported in the governmental fund financial statements.True

False

On May 1, the City of Dustin was notified of approval of a $300,000 federal operating grant, payable on a reimbursement basis as the city expends resources for the intended purpose of the grant. As of May 1, no expenditures had been made for grant purpose

No journal entry will be made until expenditures for the authorized purpose occur

At the end of the 2017 fiscal year the General Fund had $500 in encumbrances that remained opened into fiscal year 2018. In 2018 the encumbered goods were received at an invoiced cost of $520. How much would be recorded as the 2018 expenditure?-$0.

-$20.

Cartier Village's capital expenditures during the year ended December 31 included:Equipment for village tax collector's office $40,000Vehicles for village electric utility 60,000

What amounts should have been recorded in the General Fund and enterprise

General Fund: $0; Enterprise Fund: $60,000

Year-end interfund receivable or payable balances will appear in the line item internal balances within their respective columns on the government-wide statement of net position.True

False

Encumbrance accounts need not be closed at year-end if the government is required or intends to honor the encumbrances outstanding at year-end.True

False

During January 2017 General Fund supplies ordered in the previous fiscal year and encumbered at an estimated amount of $2,000 were received at an actual cost of $2,200. The entry to record this transaction will require a debit to:
-Expenditures-2017 in th

Expenditures-2017 in the amount of $200

The Governmental Activities column of the government-wide statement of net position reports both current and noncurrent assets and liabilities.True

False

-Property tax revenues

Voluntary nonexchange transactions

Which of the following financial statement(s) reports both current and noncurrent assets and liabilities?Government-wide Statementof Net Position General Fund BalanceSheetA) No YesB) No NoC) Yes NoD) Yes YesChoice AChoice BChoice C

Choice D

Property tax revenue is an example of a nonexchange revenue-one in which the government receives value without directly giving equal value in exchange.True

False

Which of the following transactions is classified as an exchange transaction?Fees charged for use of an athletic field at a city park.State grant to conduct a smoking cessation program for middle school-aged youth.

Bequest left to the city by a former m

Fees charged for use of an athletic field at a city park

Which of the following should not be reported on the balance sheet of the General Fund?Equipment.Vouchers payable.Tax anticipation notes payable.

Due from federal government.

Estimated uncollectible tax amounts are recorded in the General Fund general journal as a reduction in revenues and in the governmental activities journal as a bad debt expense.True

False

Encumbrances Outstanding is shown on the balance sheet as a restriction on fund balance.True

False

The Governmental Activities column of the statement of net position includes financial information for all funds of a government.True

False

The City of Island Grove uses encumbrance accounting and its fiscal year ends on June 30. On May 6, a purchase order was approved and issued for supplies in the amount of $6,000. Island Grove received these supplies on June 2, and the $6,000 invoice was a

Governments that are temporarily short of cash but that have levied taxes expected to be collectible during the fiscal year are generally able to borrow on short-term notes known as "tax anticipation notes payable."True

False

Which of the following assets would appropriately be reported on the governmental funds balance sheet?Capital assets.Inventories.Unamortized debt issuance costs.

Goodwill.

A payment made by a city-owned utility to the General Fund of the city in lieu of taxes is an example of an "internal exchange transaction."True

False

The county received a $10,000,000 endowment, the terms of which indicate that earnings on the endowment are to be used by health and welfare to provide medical services to low-income children. Where would the $10,000,000 be recorded?
Special revenue fund.

The government-wide statement of net position is prepared using the same measurement focus and basis of accounting as the General Fund balance sheet.True

False

Under GASB standards, Revenues must be credited for the total amount of the property tax levy.True

False

Amounts due to or from other funds should be eliminated in both the government-wide and fund financial statements.True

False

Property taxes due and collectible 90 days after the 2017 fiscal year end would be recorded as revenues in 2017 in which journal?General Fund GovernmentalActivitiesA) Yes NoB) No NoC) Yes YesD) No YesChoice A.Choice B.Choice C.

Choice D.

An interfund transfer in should be reported in a governmental fund operating statement as a(an):Revenue.Due from other funds.Other financing source.

Other financing use.

The earnings on the assets of a permanent fund are to be used to support the city's library (special revenue fund). How would the earnings be recorded?Revenues by the permanent fund.Revenues by the library.

Revenues by both the permanent fund and the li

Revenues by the permanent fund

Under the modified accrual basis of accounting, revenues should be recognized whenRealizable.Earned.Available.

Spent.

The Town of Loveland levied property taxes in the amount of $1,600,000. The town estimates that 1 percent will be uncollectible. The journal entry to record the tax levy will includeA debit to Cash for $1,584,000.A credit to Revenues for $1,584,000.

A d

A credit to Revenues for $1,584,000

Current financial resources include cash and items such as marketable securities and receivables expected to be converted into cash in the current period or soon enough thereafter to pay current period obligations.True

False

Which of the following will require a credit to Fund Balance-Unassigned of a governmental fund when operating statement accounts are closed at the end of the year, assuming there are no other financing sources or uses?
Revenues are less than expenditures.

Revenues are more than expenditures

The Estimated Revenues account of a government is debited when:The budget is recorded at the beginning of the year.Property taxes are recorded.The account is closed to fund balance-unassigned at the end of the year.

Property taxes are collected.

The budget is recorded at the beginning of the year

Equipment acquired several years ago by a capital projects fund and reported in the governmental activities statement of net position at a net book value of $2,000 was sold for $1,000 cash. Cash is collected in the General Fund. Journal entries are necess

General Fund and governmental activities

Which of the following best describes the proper treatment for uncollectible amounts of taxes?Report as bad debt expense.Report as deferred inflow of resources.Report as bad debt expenditures.

Report receivables net of uncollectible amounts.

Report receivables net of uncollectible amounts

Equipment used for su

Under current GASB standards the revenue from property taxes should be recorded in the amounts collected during the current period.True

False

On July 1, the first day of its fiscal year, the Town of Eldon levied a $1,000,000 property tax which is payable in full on December 1 of the same year. On September 15, the town decided to borrow $200,000 in 90-day tax anticipation notes to cover operati

A credit to Tax Anticipation Notes Payable

The receipt of equipment that had previously been ordered should be recorded in the General Fund as a debit toAppropriations.Equipment.Encumbrances.

Expenditures.

A payment made by the General Fund to a debt service fund would not be recorded in the governmental activities journal.True

False

The account Budgetary Fund Balance can have either a debit or credit balance.True

False

Which of the following would properly be reported in the operating statement of a governmental fund?Interest on a tax anticipation note issued and repaid during the period.Amortization expense.Depreciation expense.

A grant that is intended to finance a

Interest on a tax anticipation note issued and repaid during the period.

Which of the following would be reported on the operating statement of a governmental fund?The liability for the annual obligation to the employee retirement plan.Depreciation expense.Resources received for services to be provided in future periods.

Revenue related to prior periods

If a governmental fund issues debt to finance a capital acquisition, how should the proceeds of the debt be recorded?Long-term liability.Revenue.Other financing source.

Not reported by the governmental fund; only reported at the government-wide level.

The city's electric utility fund sent $700,000 to the General Fund to help cover the city's operating costs. This transaction would be recorded in the governmental activities journal asInterfund transfer in.Internal balance.Revenue.

It would not be rec

The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of the city). The governmental activities journal entry to record the transaction will include:A debit to Expenses.A debit to Expenditures.

A debit to Inte

The City of Pringle purchased a vehicle for the police department. If the operations of the police department are financed by general revenues, an asset would be recorded in which journal(s)?General Fund GovernmentalActivitiesA) No YesB) No No

C) Yes