$1.$ Which of the following funds would use the modified accrual basis of accounting in preparing its fund financial statements?

a$)$ City Electric Utility Enterprise Fund.

b$)$ City Hall Capital Projects Fund.

c$)$ City Motor Pool Internal Service Fund.

d$)$ City Employee Pension Trust Fund.

$2.$ Which of the following funds would use the accrual basis of accounting in preparing its fund financial statements?

a$)$ City General Fund.

b$)$ City Hall Capital Projects Fund.

c$)$ City Motor Pool Internal Service Fund.

d$)$ None of the above.

$3.$ As used in government accounting, expenditures are decreases in

a$)$ Net assets.

b$)$ Net current financial resources.

c$)$ Net cash.

d$)$ Net economic resources.

$4.$ Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statements. The city pays its employees bi$-$weekly on Friday. The fiscal year ended on Wednesday, June $30.$ Employees had been paid on Friday, June $25.$ The employees paid from the general fund had earned $$90,000$ on Monday, Tuesday, and Wednesday $($June $28,29,$ and $30).$ What entry, if any, should be made in the city$$s general fund on June $30?$

a$)$ Debit Expenditures $$90,000$; credit Accrued wages and salary $$90,000.$

b$)$ Debit Expenses $$90,000$; credit Accrued wages and salary $$90,000.$

c$)$ Debit Expenditures $$90,000$; credit Encumbrances $$90,000.$

d$)$ Debit Expenses $$90,000$; credit Encumbrances $$90,000.$

$5.$ Assume that the City of Juneau maintains its books and records to facilitate the preparation of its government$-$wide financial statements. The city pays its employees bi$-$weekly on Friday. The fiscal year ended on Wednesday, June $30.$ Employees had been paid on Friday, June $25.$ The employees paid from the general fund had earned $$90,000$ on Monday, Tuesday, and Wednesday $($June $28,29,$ and $30).$ They will earn $$60,000$ on Thursday and Friday $($July $1$ and $2).$ What entry, if any, should be made on the government$-$wide financial statements?

a$)$ Debit Expenditures $$90,000$; credit Accrued wages and salary $$90,000.$

b$)$ Debit Expenses $$90,000$; credit Accrued wages and salary $$90,000.$

c$)$ Debit Expenditures $$90,000$; credit Encumbrances $$90,000.$

d$)$ Debit Expenses $$90,000$; credit Encumbrances $$90,000.$

$6.$ Employees of the City of Orleans earn ten days paid leave for each $12$ months of employment. The city has a policy that employees must take their vacation days during the year following the year in which they are earned. If they do not take vacation in the allotted period, they forfeit the vacation pay benefit. Traditionally, employees have taken $80$ percent of the vacation days earned. During the current year, city employees earned $$600,000$ in vacation pay. Assuming the city maintains its books and records in a manner to facilitate the preparation of fund financial statements, which of the following entries should be made in the general fund to record the vacation pay earned during the current period?

a$)$ Debit Expenditures $$600,000$; credit Vacation pay payable $$600,000.$

b$)$ Debit Expenses $$600,000$; credit Vacation pay payable $$600,000.$

c$)$ Debit Expenditures $$480,000$; credit Vacation pay payable $$480,000.$

d$)$ No entry required.

$7.$ Employees of the City of Orleans earn ten days paid leave for each $12$ months of employment. The city has a policy that employees must take their vacation days during the year following the year in which they are earned. If they do not take vacation in the allotted period, they forfeit the vacation pay benefit. Traditionally, employees have taken $80$ percent of the vacation days earned. During the current year, city employees earned $$600,000$ in vacation pay. Assuming the city maintains its books and records in a manner to facilitate the preparation of government$-$wide financial statements, which of the following entries should be made to record the vacation pay earned during the current period?

a$)$ Debit Expenditures $$600,000$; credit Vacation payable $$600,000.$

b$)$ Debit Expenses $$600,000$; credit Vacation payable $$600,000.$

c$)$ Debit Expenses $$480,000$; credit Vacation payable $$480,000.$

d$)$ No entry required.