1)

The government charges OMR 400,000 general property taxes for the year 2019. The amount collected till the year end accounted to OMR 360,000. It expects to collect the balance shortly after year-end. These taxes are accounted as unrestricted resources to be used for financing of operating activities that would contribute towards public welfare. During the year, the government incurred OMR 330,000 in general operating expenditures of which it actually paid OMR 310,000. To cover up the capital project fund deficit of 2018, the government had borrowed funds by issuing long term notes amounting to RO 50,000. A debt service fund was created and an amount of OMR 40,000 is transferred from the general fund to service the debt. Based on the above case, which among the following statements are true?

a.

The unrestricted resources are accounted in the Debt service fund and the cash balance in the fund statement amounts to RO OMR 40,000

b.

The unrestricted resources are accounted in the Debt service fund and the cash balance in the fund statement amounts to RO OMR 90,000

c.

The unrestricted resources are accounted in the General fund and the cash balance in the fund statement amounts to RO OMR 30,000

d.

The unrestricted resources are accounted in the General fund and the cash balance in the fund statement amounts to RO OMR 10,000

2)

Salalah municipality received the following proceeds that are legally restricted.

Taxes assessments to install sidewalks RO 50,000

Hotel taxes to promote tourism RO 10,000

What amount should be reported in the Citys special revenue funds?

a.

RO 60,000

b.

RO 50,000

c.

RO 10,000

d.

RO 40,000

3)

Sohar City has established an agency fund to account for employees share of health insurance benefits. During the year 2019, total of OMR 6,000 was deducted from the employees pay cheques, and OMR 4,700 was paid to the insurance company in 2020. The remaining will be paid to the insurance company in the first quarter of 2020. The amount due to insurance company and the cash balance in the Agency fund will be:

a.

Cash balance is RO 1,300 and due to insurance company is RO 1,300

b.

Cash balance is RO 4,700 and due to insurance company is RO 6,000

c.

Cash balance is RO 4,700 and due to insurance company is RO 4,700

d.

Cash balance is RO 6,000 and due to insurance company is RO 6,000

4)

The government makes appropriations of RO 150,000 to Muscat School for the month of January 2019. During the month the following transactions occurred:

Salary paid RO 35,000

Purchase orders were placed for office supplies RO 49,000

Office supplies were received with a voucher for RO 45,000

An amount of RO 15,000 was transferred to Debt service fund.

The unreserved fund balance at the end of the period is:

a.

65,000

b.

55,000

c.

70,000

d.

95,000