1. Which of the following statements regarding budgetary accounting is true?

a. When the budget is recorded, estimated revenues are debited.

b. Budgetary accounts are never closed.

c. Encumbrance is another term for appropriation.

d. Budgeted revenues can be classified by source or character class.

2. The encumbrance account of a governmental unit is debited when:

a. The budget is recorded

b. A purchase order is approved

c. Goods are received

d. A voucher payable is recorded

3. Encumbrance outstanding at year end in a state’s general fund could be reported as a:

a. Liability in the general fund

b. Fund balance—committed in the general fund

c. Liability in the general long-term debt account group

d. Expenditure in the general fund

4. For the budgetary year ending December 31, 2011. Emerald City’s general fund expects the following inflows of resources:

Property taxes, licenses, and fees ......... $9,000,000

Proceeds of debt issue............. 5,000,000

Interfund transfers for debt service........ 1,000,000

In the budgetary entry, what amount should Emerald record for estimated revenues?

a. $9,000,000

b. $10,000,000

c. $14,000,000

d. $15,000,000

5. During its fiscal year ended June 30, 2011, the City of Ingalls issued purchase orders totaling $5,000,000, which were properly charged to encumbrances at that time. Ingalls received goods and related invoices at the encumbered amounts totaling $4,500,000 before year end. The remaining goods of $500,000 were not received until after year end. Ingalls paid $4,200,000 of the invoices received during the year. What amount of Ingalls’s encumbrances was outstanding at June 30, 2011?

a. $0

b. $300,000

c. $500,000

d. $800,000