(Multiple choice)

1. Which of the following revenues can be recorded when levied (when bills are sent out), rather than when actually received?

a. Fines

b. Property taxes

c. Service charges

d. Licenses and permits 2. Which of the following events causes the Estimated revenues control account of a governmental unit to be debited?

a. Budgetary accounts are closed at the end of the year.

b. The budget is recorded.

c. Actual revenues are recorded.

d. Actual revenues are collected.

3. Which of the following accounts of a governmental unit is debited when a purchase order is approved?

a. Encumbrances

b. Budgetary fund balance reserved for encumbrances

c. Vouchers payable

d. Appropriations 4. When a police car is received by a governmental unit, the entry on the books of the General Fund should include a debit to which of the following?

a. Appropriations-police cars

b. Expenditures-police cars

c. Encumbrances-police cars

d. Unreserved fund balance 5. Which of the following terms refers to an actual cost, rather than an estimate?

a. Expenditure

b. Appropriation

c. Budget

d. Encumbrance 6. In approving the budget of the City of Troy, the city council appropriated an amount greater than expected revenues. What will be the result of this action?

a. A cash overdraft during the fiscal year

b. An increase in outstanding encumbrances by the end of the fiscal year

c. A debit to Budgetary fund balance

d. A necessity for compensatory offsetting action in the Debt Service Fund 7. Which of the following statements about the Budgetary fund balance reserved for encumbrances is not true?

a. It is used to set aside monies for specific purposes.

b. It is used to identify resources committed, but not expended.

c. It is used to identify liabilities resulting from the purchase of goods and services.

d. It provides information on outstanding purchase orders.
8. Which of the following is a budgetary account?

a. Expenditures-supplies

b. Appropriations

c. Revenues-property taxes

d. Vouchers payable 9. If estimated revenues exceed appropriations, closing the budgetary accounts must include which of the following entries?

a. A debit to Estimated revenues

b. A debit to Revenues-control

c. A debit to Budgetary fund balance

d. A credit to Budgetary fund balance 10. Entries similar to those for the General Fund may also appear on the books of a municipality's $\qquad$ .

a. Enterprise Fund

b. Private Purpose Trust Fund

c. Agency Fund

d. Special Revenue Fund 11. What type of account is used to earmark a portion of the appropriation to liquidate the contingent obligation for goods ordered but not yet received?

a. Appropriation

b. Expenditure

c. Obligation

d. Budgetary fund balance reserved for encumbrances 12. Authority granted by a legislative body to make expenditures and to incur obligations during a fiscal year is the definition of $\qquad$ .

a. An appropriation

b. An authorization

c. An encumbrance

d. Budgetary fund balance reserved for encumbrances (AICPA adapted)