Reference no: EM131701568

Question 1. Under the modified accrual basis of accounting, when are revenues considered to be available ?

a. When earned

b. When cash is received

c. When measurable with reasonable accuracy

d. When collectible in the current period or soon enough thereafter to pay current-period bills

Question 2. In budgetary accounting, what is the net effect of receiving all the items ordered together with an invoice for an amount less than the amount encumbered?

Question 3. Under the modified accrual basis of accounting, GASB standards specifically require accrual of salaries due but unpaid at year-end because

a. the amount is measurable, and resources to pay the salaries are available.

b. salaries must be paid to maintain the entity's credit rating.

c. salaries are liabilities that, having been incurred, are normally paid in a timely manner and in full from current financial resources.

d. accruing salaries is an exception to the modified accrual basis of accounting.

Question 4. In approving the budget, the city council appropriated an amount greater than expected revenues. What will be the result of this action?

a. A cash overdraft will definitely occur during the fiscal year.

b. Current-year expenditures will be greater than previous-year expenditures.

c. A debit will be made to Budgetary fund balance.

d. The debits and the credits will not be equal.

Question 5. Which of the following is a budgetary account?

a. Expenditures-supplies

b. Appropriations

c. Revenues-property taxes

d. Vouchers payable

Question 6. If estimated revenues exceed appropriations, closing the budgetary accounts must include which of the following entries?

a. A debit to Estimated revenues

b. A debit to Revenues-control

c. A credit to Budgetary fund balance

d. A debit to Budgetary fund balance

Question 7. Entries similar to those for the General Fund may also appear on the books of a municipality's ______________.

a. Enterprise Fund

b. Pension Trust Fund

c. Agency Fund

d. Special Revenue Fund

Question 8. When a budgetary comparison schedule is prepared, columns are needed for

a. Last year's budget, current year's budget, and current year's actual results on the budgetary basis of accounting

b. Current year's original budget, current year's final budget, and current year's actual results on the budgetary basis of accounting

c. Current year's original budget, current year's actual results on the budgetary basis of accounting, and current year's actual results on the modified accrual basis of accounting

d. Current year's final budget, current year's actual results on the budgetary basis of accounting, and last year's actual results on the budgetary basis of accounting

Question 9. Authority granted by a legislative body to make expenditures and to incur obligations during a fiscal year is the definition of _________________.

a. an appropriation

b. an authorization

c. an encumbrance

d. an interfund transfer