Question
9- closer control is maintained over expenditures by using appropriation, encumbrances, and allotments. a. True b. False 10- Which of the following is not a
9-
closer control is maintained over expenditures by using appropriation, encumbrances, and allotments.
a.
True
b.
False
10-
Which of the following is not a characteristic used to determine if an organization is a government?
a.
The potential for unilateral dissolution with the net assets reverting to a government upon dissolution
b.
The majority of governing board members are appointed by government entities
c.
An entity receives over half its resources from other governmental entities
d.
An entity that has the power to enact and enforce a property tax levy
11-
The estimated revenues account of a governmental unit is debited when:
a.
The budget is closed at the end of the year
b.
Actual revenues are collected
c.
Actual revenues are recorded
d.
The budget is recorded
12-
A city places a purchase order for police sedans at an estimated price of $100,000, The purchase order allows the supplier to increase the price by up to 5 percent if the price of steel increases, The city received the sedans along with an invoice for $104,000, With what mount should the city credit the Encumbrances account?
a.
104,000
b.
4,000
c.
100,000
d.
1,000
13-
The similarities of accounting for profit seeking and G&NP organizations include all of the following except:
a.
Double-entry system of accounts.
b.
Where a G&NP organization has a business-type activity, e.g., a municipal electric utility, the accounting generally parallels that for a similar private business (e.g., electric utility).
c.
Most accounting mechanics, basic transaction documents, journals, ledgers, charts of accounts.
d.
Balance sheet and income statement for business enterprises and G&NP are identical in base of classification.
14-
The budget of the general fund of the city of Glen shows an appropriation for capital equipment of $180,000, So far, a fire engine ordered with estimated cost of $80,000, received with invoice of $75,000, and paid for, Another fire engine, expected to cost $40,000, has been ordered and an encumbrance for this amount is outstanding, How much can the city legally spend for a third fire engine this year?
a.
$180,000
b.
$0
c.
$65,000
d.
$60,000
15-
Which of the following is true about closing entries:
a.
At the end of the year budget and temporary accounts are closed
b.
At the end of the year budget and permanent accounts are closed
c.
At the end of the year only permanent accounts are closed
d.
At the end of the year only budget is closed
16-
Which of the following is budgetary account:
a.
Budgetary fund balance
b.
Voucher payable
c.
Revenue- fines and fees
d.
Unreserved fund balance
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