Question
25- Which fund would be used to account for the activities of a municipal employee retirement plan that is financed by equal employer and employee
25-
Which fund would be used to account for the activities of a municipal employee retirement plan that is financed by equal employer and employee contributions?
a.
Internal service fund
b.
Pension trust fund
c.
Permanent fund
d.
Agency fund
26-
Fiduciary funds include agency, pension trust, investment trust, and permanent funds.
a.
FALSE
b.
TRUE
27-
Budget for the city was adopted and recorded on January 1 of the year. After recording the budget, the accounting records showed a debit balance of $50,000 in the budgetary fund balance account. What does this indicate?
a.
Estimated revenue are $50,000 greater than Appropriations
b.
Appropriations are $50,000 greater than estimated revenues.
c.
Expenditures are $50,000 greater than Revenues
d.
Revenues are $50,000 greater than Expenditures
28-
Control account is a summary account whose balance is equal to the total of the individual balances of its subsidiary accounts.
a.
True
b.
False
29-
The Fund is a separate legal and accounting entity with a self-balancing set of accounts.
a.
FALSE
b.
TRUE
30-
A transaction in which a government issues general obligation bonds to finance the construction of a new police station would
a.
Decrease fund balance in a Debt Service Fund.
b.
Increase liabilities in a Debt Service Fund.
c.
Increase fund balance in a Capital Projects Fund.
d.
Increase liabilities in a Capital Projects Fund.
31 -
City officials are interested in the unencumbered balance because it indicates the amount of the appropriation that has not yet been spent or committed for future expenditures.
a.
True
b.
False
32-
Which of the following results in a favorable variance:
a.
Expenditures exceeds appropriations
b.
Estimated revenues exceeds appropriations
c.
Appropriations exceeds expenditures
d.
Estimated revenues exceeds revenues
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