Use the following fact pattern to answer questions 39 through 40: The budget for Muncie, IN, population 2,758, was passed for fiscal year 2020. Due to additional police and healthcare related emergency due to COVID-19, the mayor and city council revised the budget as follows: Sales tax estimates were reduced by $39,000; Federal grants of $120,000 were expected to be received due to the virus (this was not in the original budget); Appropriations for public safety increased $30,000; and, Appropriations for public health increased $80,000. 39.

In the General Fund, the journal entry to record the budget adjustment for the reduction in estimated sales taxes and the anticipated federal grant would include a: A. Credit to Estimated Revenues, $39,000. B. Debit to Other Financing Sources, $120,000. C. Credit to Appropriations, $80,000. D. Debit to Estimated Other Financing Uses, $120,000.

40. In the General Fund, the journal entry to record the budget adjustment for the increase in appropriations from expected increased funding for public safety and public health would include a: A. Debit to Appropriations, $110,000. B. Credit to Estimated Other Financing Sources, $120,000. C. Debit to Estimated Revenues, $39,000. D. Credit to Appropriations, $110,000.

41. The Township of Spring Lake, NJs General Fund prepared and invoiced the Spring Lake Water Department, an enterprise fund, for the fair value of the cost of providing services. In the General Fund, this billing is called: A. An in-kind contribution. B. An exchange revenue. C. A general revenue. D. A payment in lieu of taxes.

42. Internal balances can have either a debit or a credit balance and is reported on the: A. Balance sheet. B. Statement of activities. C. Statement of net position. D. Statement of revenues, expenditures, and changes in fund balances. 10

43. Special revenues fund does not have which of the following: A. Economic resources focus. B. Modified Accrual. C. Fiscal Accountability. D. Prepares a balance sheet.

44. The special revenues fund: A. Is an enterprise fund. B. Is a clearinghouse fund. C. Is where grant monies and other revenues are collected for specific purposes. D. Is not a governmental fund.