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, 2016. 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, 2016, 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 yearend. Ingalls paid $4,200,000 of the invoices received during the year. What amount of Ingalls’s encumbrances was outstanding at June 30, 2016?

a $0
b $300,000
c $500,000
d $800,000