Health care organizations and colleges use modified accrual basis of accounting. (true or false).

A balance in the Reserved for Encumbrances in excess of a balance of Encumbrances indicates:

a) An excess of vouchers payable over encumbrances

b) An excess of purchase orders over invoices received

c) An excess of appropriations over encumbrances

d) A recording error

Which of the following financial statements should be prepared for proprietary funds?

a). Statement of revenues, expenditures, and changes in fund balance

b). Statement of activities

c). Statement of changes in proprietary net position

d). Statement of cash flows

The general fund of XYZ City acquired 2 police cars at the beginning of 20x3, the cars at a cost of 40,000. The cars are expected to last 4 years and have a residual value of 10,000. SL Depreciation is used.

On the balance sheet of govt funds, the police cars will be reported as assets for:

1. 40,000
2. 32,500,
3. 0
4. 22,500