1. Goods for which a purchase order had been placed at an estimated cost of $1,600 were received at an actual cost of $1,550. The journal entry in the General Fund to record the receipt of the goods will include a:

Multiple Choice

a. Debit to Encumbrances Outstanding for $1,600.

b. Credit to Vouchers Payable for $1,550.

c. Debit to Expenditures for $1,550.

d. All of the above are correct.

2. Which of the following properly represents the format of the government-wide statement of net position?

Multiple Choice

a. Assets minus liabilities equal fund balance.

b. Assets and deferred inflows of resources minus liabilities and deferred outflows of resources equal fund balance.

c. Assets and deferred outflows of resources minus liabilities and deferred inflows of resources equal net position.

d. Assets and deferred inflows of resources minus liabilities and deferred outflows of resources equal net position.

3. Which of the following transactions is reported on the government-wide financial statements?

Multiple Choice

a. An interfund loan from the General Fund to a special revenue fund.

b. Equipment used by the General Fund is transferred to an internal service fund that predominantly serves departments that are engaged in governmental activities.

c. The City Airport Fund, an enterprise fund, transfers a portion of boarding fees charged to passengers to the General Fund.

d. An interfund transfer is made between the General Fund and the Debt Service Fund.

4. Which of the following financial statements are prepared for governmental funds?

Multiple Choice

a. Statement of Net Assets and Operating Statement.

b. Balance Sheet and Income Statement.

c. Statement of Net Position and Statement of Activities.

d. Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances.