8. Which of the following is not true about budgetary accounting? (each sentences are

independent)

a. IF AIFA city prepare budgetary plan as follows : estimated revenue $1,000,000,

estimated OFS $200,000, Appropriation $500,000, Estimated OFU $100,000, budgetary

fund balance is recognized at $600,000 to credit account.

b. Amount available for use = Appropriation - Total expended and encumbered

appropriations

c. If budgetary fund balance amount exceed to encumbrance amount, this imply that

sum of estimated revenue and estimated OFS exceed to sum of appropriation and

estimated OFU, in consequence, budgetary fund balance account be located in the

credit position.

d. New York city issued purchase order $40,000 about police car in 20X1, and police

car will actually arrive in 20X2. Meanwhile, at the beginning of 20X2, New York city

anticipated budgetary amount as follows : estimated revenue $220,000, Appropriation

$200,000. At this time, If New York city journalized budgetary accounting as below, :

Estimated Revenue 220,000 Appropriation 240,000

Budgetary Fund Balance 20,000

they must have chosen their journalizing method as appropriation lapse.

9. Which of the following is not true about major fund?

a. When government entity prepare the fund financial statements, they can choice

balance sheet presentation method by classification for each fund type, or

classification for amounts. at this time, If they want to prepare balance sheet in

accordance with classification for amount, they have to select the major fund.

b. General fund is always classified by major fund. in other words, It doesn't matter

what classification method is used. General fund is always presented in the balance

sheet.

c. When government entity select major fund, Internal service fund is excluded.

d. Because deferred outflow is not asset, and deferred inflow is not liability, deferred

outflow and inflow are not considered when government entity select major fund.

10. Which of the following is not true about GASB 33?

a. Income tax, Motor fuel tax and Property tax recognize revenue from 'levy' to 'next

year, 60 day'. On the contrary, government-wide financial statements recognize these

transactions as revenue when they exchange transaction in basic premise on 'derived

tax'

b. In fund financial statements, Fine revenue is recognized when cash is collected. On

the other hand, In government-wide financial statements, fine revenue(net allowance)

is recognized when government entity levy fine.

c. GASB 33 is standard to make government-wide financial statements.

d. In fund financial statements, donation revenue is recognized when donation is

received. On the other hand, In Government-wide financial statements, this revenue is

recognized when fulfill eligible requirement.

11. Which of the following is not true about bond of governmental accounting?

a. AIFA City issued General Obligation Bond(GOB) $50,000 at 110, and additional cash

payment occurred as follow : Underwriter fee $500, Debt issue cost $1,000. Then,

Underwriter fee $500 is expended, and debt issue cost $1,000 is deducted from

GOB. Therefore, AIFA City will report this GOB to OFS category, at $54,000.

b. On 1/2/20X1, New York state issued $100 municipal bond, and 1/2/20X2, repaid

interest $10 and part of the principal $50. Journal entry are as follows :

Date Debit Credit

Jan 2, 20X1 Cash $100 OFS $100

Dec 31, 20X1 - No entry -

c. In modified accrual, bond amortization cost is recognized as expenditure in full.

d. Bond anticipation note is reported in other finance sources, because of accurate

measurement of working capital.

12. Which of the following is true about classification of expense?

a. Expenditure is reported by : Governmental fund is 'Character', Proprietary fund is

'Object', Government-wide financial statement is 'Nature'

b. Fiduciary fund does not consider expenditure classification.

c. 'Capital outlay' category is information for 'acquisition of capital asset' and 'past'.

d. 'Debt service' category is information for 'current'.

13. Read the passage as below, and choice a correct answer.

Seoul Metro that operate subway business is public enterprise. Seoul city have a

authority to appoint management and to decide major decision of Seoul Metro.

The head of a Seocho-gu Office is elected by inhabitants of a Seocho-gu.

a. Seoul Metro's accounting process is governed by Seoul City.

b. Subway business that Seoul Metro operate is included by Enterprise fund of Seoul

City.

c. Seocho-gu Office is independent primary government.

d. According to above passages, Seoul city is financially accountable in relation to Seoul

Metro. Therefore, Seoul City include Seoul Metro as a component unit. However,

because Seoul metro is subgroup of Seoul city, Seoul city should report this

component as part of Fund financial statements.

14. Which of the following is not true about the budgetary comparison schedule?

a. The budgetary comparison schedule should present both the original and the final

appropriated budgets for the reporting period as well as actual inflows, outflows, and

balances, stated on the government's budgetary basis.

b. Even if AIFA City adopt cash-basis accounting in order to obey instruction of the

laws and regulation, AIFA should prepare budgetary comparison schedule based on

modified accrual basis.

c. It is possible that actual amount of budgetary comparison schedule differ from

expenditure amount of statement of revenue, expenditures & changes in fund

balance.

d. A separate column to report the variance between the final budget and actual

amounts is encouraged, but not required.