1. City employees get paid every Friday for the week. In Year 1, the fiscal year ended on Wednesday, so at the end of Year 1 the city owed the employees 3 days pay, which did not get paid until the second day of Year 2. Under which accounting method will these three days pay be included in the Year 1 expenses (or expendures)?
   1. Both full accrual and modified accrual
   2. Neither full accrual nor modified accrual
   3. Full accrual, but not modified accrual
   4. Modified accrual, but not full accrual.

1. A city spends $4 million to build a new building. It credits cash. What should be the debit side of the entry in the government-wide statements, and the fund statements?
   1. Building (an asset) in both
   2. Expenditure for building in both
   3. Building (an asset) in government-wide, expenditure for building in fund accounts
   4. Expenditure for building in government-wide, Building asset in fund accounts
2. Which of the following categories of fund balances for a governmental fund are LEAST restricted:
   1. Nonspendable
   2. Assigned
   3. Committed
   4. Restricted