Cas cut fina 2X1959 10. 7. Which government funds account for resources that are legally restricted so only their earnings, principal may be used to finance operations: Permanent Funds b. Special revenue Funds c. Capital Project Funds d. Debt Service Funds 8. GASB standards for recording pension expenses require a calculation of the difference between the pension plan's total liabilities and the pensions: a. Permanent Life b. Accrued liabilities, Plans Assets d. Plans estimated useful Life 9. Unlike For Profit organizations, the first step in the closing process is generally to close revenue. What should be the first step in closing for an entity that uses Fund accounting? a. Close revenue (b) Close expense c. Close budgetary entries d. Close Fund Balances Fund Balance Assigned Encumbrances Expense Vouchers Payable Dr Cr $25,000.00 $25,000.00 $25,125 The above journal entry is made when: $25,125 a. Reverse for encumbrances at estimated cost and then to record an invoice at actual cost b. Close the encumbrance account c. Increase the Fund Balance by estimated expenses d. Transfer funds from the temporary account to the actual account tek 11. Encumbrance Fund Balance Assigned Dr $18,000 The above journal entry is an entry that most likely a. Records a transfer of a liability b. Records an approved purchase order c. Records a county tax provision d. Records a tax payers assessment on commercial property 12. Which of the following accounts is a budgetary account? a. Property tax receivable b. Property tax payable c. Appropriations d. Vouchers payable Cr $18,000 Short Answer (20 pts Each) 13. Assume General City has the following information available: a. General City Comptroller goes to the bank and asks for a $2,500,000 not to finance a government operation in advance of collecting the first property tax installment b. Collection of taxes and related interest for the previous year is as follows: Current taxes........... ..$1,500,000 Delinquent taxes.... ..$300,000 Interest on delinquent taxes... $10,000 Tax liens........ $35,000 $3,000 Interest on tax liens... Instructions: record the above transaction in a general journal 14. Assuming normal balances in the following accounts prepare closing entries for the fiscal year ending March 31. Account Appropriations Normal Balance $500,000 Budgetary Fund Balance Unassigned $35,000 Estimated Other Financing Uses $10,000 Estimated Other Financing Source $325,000 Estimated Revenue $150,000