1. An authorized expenditure is a (n):
   1. approved financing use
   2. appropriation
   3. encumbrance
   4. expense
2. which of the following correctly portrays the necessary journalization of the budget journal entry?

Debits Credits

1. Appropriations Estimated Revenues
2. Estimated Revenues s Estimated Other financing Sources
3. Estimated Revenues Appropriations
4. Estimated Other financing Uses Estimated Other financing Sources
5. Which of the following would not be considered a budgetary account in the General Fund?
   1. Estimated Other Financial Sources
   2. Appropriations
   3. Estimated Revenues
   4. Fund Balances- -Non-spendable
6. The entry to record Warwick budget for the General Fund includes the following:

Estimated Revenues $4.000,000

Appropriations 3,850,000

Estimated Other Financing Uses 400,000

Estimated Other Financial Sources 150,000

The entry to record this budget budget would include a debit to

1. Estimated Other Financing Uses
2. Appropriations
3. Budgetary Fund Balance- -Unassigned
4. Encumbrance
5. The entry to record Warwick budget for the General Fund includes the following:

Estimated Revenues $4.000,000

Appropriations 3,850,000

Estimated Other Financing Uses 400,000

Estimated Other Financial Sources 150,000

The entry to close the budget accounts at the end of the year would include a debit to

1. Estimated Other Financing Uses
2. Appropriations
3. Budgetary Fund Balance- -Unassigned
4. Encumbrance
5. Which of the following is not a type of account classification found in the general fund?
   1. permanent balance sheet accounts
   2. budgetary accounts
   3. forecast accounts
   4. operating accounts

PROBLEM II (A)

1. Which of the following is an illustration of an action that can be taken to help a troubled firm without using the court system?
   1. asset transfers to settle debt
   2. equity interest granted in exchange for debt
   3. modifications of interest rates more favorable to the firm
   4. All or a combination can be used.
2. In a troubled debt restructuring involving only the modification of terms a loan receivable, how should the loan receivable be measured on the creditor's balance sheet?
   1. The loan's observable market price
   2. The fair value of the collateral if the loan is collateral dependent.
   3. The present value of expected future cash flows at the original contractual rate
   4. All of the above
3. A voluntary bankruptcy petition can be filed under
   1. Chapter 7
   2. Chapter 11
   3. Chapter 13
   4. All of the above chapters.
4. A plan reorganization may include all exceptwhich of the following?
   1. arrangements involving elimination of some debt
   2. identification of various classes
   3. identification of a trustee in liquidations
   4. differentiation of impaired versus non-impaired interests
5. Which of the following are characteristics of the financial statements of a company emerging from bankruptcy under fresh-start accounting rules?
   1. There will be no beginning retained earnings
   2. Goodwill maybe recorded
   3. Liabilities are reported at their present value
   4. All of the above
6. To assist the trustee in chapter 7 bankruptcy, a debtor must
   1. collect and reduce to money any non-exempt property
   2. file progress reports with the court
   3. file a statement of affairs, consisting of answers of questions regarding debtor's financial condition
   4. pay dividends to creditors with regards to priorities
7. Which of the following is not a duty of the trustee in chapter 7 liquidation?
   1. File proofs of claims with the bankruptcy court
   2. Investigate the financial affairs of the debtor
   3. Make payments to creditors as promptly as practicable with regards to priorities
   4. File reports of progress
8. Put the following classes in the order allowed by the Bankruptcy Act, starting with the highest priority to the lowest
   1. Expenses to administer estate
   2. Tax claims of governmental units days
   3. deposits up to $1,800 each for goods pr services never received from the debtor
   4. Wages (including salaries and commissions) up to $10,000 earned within

a. 1,3,4,2

b. 3,1,2,4

c. 4,2,1,3

d. 2,1,3,4

1. Which of the following is true?
   1. Certain debts are not dischargeable
   2. The goal of liquidation is to give the company a new start
   3. all secure claims are paid in full
   4. The expenses to administer the estate are paid last because they are unsecured