7. An encumbrance represents the estimated liability for goods placed on order.

True

False

8. General funds and special revenue funds are entitled to record legally approved revenue budgets as receivables and legally approved appropriations as payables.

True

False

9. In recording a legally approved budget, a budgeted excess of estimated revenues over appropriations should be credited to the fund balance account.

True

False

10. Governmental units which are temporarily short of cash but which have levied taxes expected to be collectible during the fiscal year are generally able to borrow on short-term notes known as "tax anticipation notes payable."

True

False

11. When purchase orders or contracts are issued for legally authorized purposes a record must be kept, but no entries in the general fund or special revenue fund accounts are necessary.

True

False

12. The payment of liabilities by the general fund or a special revenue fund requires the expenditure of an appropriation

True

False

13. Under the modified accrual basis of accounting applicable to governmental fund types, the revenues account is credited for the total amount of property tax bills prepared.

True

False

14. If property taxes are not collected by the date specified by law, additional revenue is generally earned by the fund of the governmental unit for which the taxes were levied.

True

False

15. If a governmental unit uses the encumbrance method for purchases of goods and services, generally accepted accounting principles require that it also use the encumbrance method for its payrolls.

True

False