Select the correct answer for each of the following questions.

1. Which of the following steps in the acquisition of goods and services occurs first?

a. Appropriation.

b. Encumbrance.

c. Budget.

d. Expenditure.

2. What account is used to earmark the fund balance to recognize the contingent obligations of goods ordered but not yet received?

a. Appropriations.

b. Encumbrances.

c. Obligations.

d. Fund Balance Reserved for Encumbrances.

3. When the Estimated Revenues Control Account of a governmental unit is closed out at the end of the fiscal year, the excess of estimated revenues over estimated appropriations is:

a. Debited to Unreserved Fund Balance.

b. Debited to Unreserved Fund Balance Reserved for Encumbrances.

c. Debited to Budgetary Balance Unreserved.

d. Credited to Fund Balance Reserved for Encumbrances.

4. The Carson City general fund issued purchase orders of \(\$ 630,000\) to vendors and supplies. Which of the following entries should be made to record this transaction?

5. The following balances are included in the subsidiary records of Dogwood's Parks and Recreation Department on March 31, 20X2:

How much does the department have available for additional purchases of supplies?

a. \(\$ 0\).

b. \(\$ 2.250\).

c. \(\$ 3,000\).

d. \(\$ 6,750\).
6. The board of commissioners of the City of Elgin adopted its budget for the year ending July \(31,20 \mathrm{X} 2\), which indicated revenue of \(\$ 1,000,000\) and appropriations of \(\$ 900,000\). If the budget is formally integrated into the accounting records, what is the required journal entry?

7. Which of the following accounts of a governmental unit is credited when the budget is recorded?

a. Encumbrances.

b. Budgetary Fund Balance Reserved for Encumbrances.

c. Estimated Revenue Control.

d. Appropriations Control.
8. Which of the following accounts of a governmental unit is debited when supplies previously ordered are received?

a. Encumbrances.

b. Budgetary Fund Balance Reserved for Encumbrances.

c. Vouchers Payable.

d. Appropriations Control.
9. Which of the following situations will increase the fund balance of a governmental unit at the end of the fiscal year?

a. Appropriations are less than expenditures and budgetary fund balance reserved for encumbrances.

b. Appropriations are less than expenditures and encumbrances.

c. Appropriations are more than expenditures and encumbrances.

d. Appropriations are more than estimated revenue.
10. Which of the following accounts of a governmental unit is credited to close it out at the end of the fiscal year?

a. Appropriations Control.

b. Revenue-Property Tax.

c. Budgetary Fund Balance Reserved for Encumbrances.

d. Encumbrances.

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Debit Credit a. Encumbrances 630,000 Budgetary Fund Balance Reserved for Encumbrances 630,000 b. Expenditures 630,000 Vouchers Payable 630.000 c. Expenses 630.000 Accounts Payable 630,000 d. Budgetary Fund Balance Reserved for Encumbrances 630.000 Encumbrances 630,000