Reference no: EM131701697
(Multiple choice-General and Special Revenue Funds)
Question 1. Which of the following sets of accounts is the General Fund likely to have?
a. Vouchers payable, Due to other funds, and Deferred revenues-property taxes
b. Cash, Property taxes receivable, and Capital assets
c. Cash, Allowance for depreciation, and Allowance for uncollectible taxes
d. Vouchers payable, Bonds payable, and Unassigned fund balance
Question 2. Which of the following transactions results in reporting a transfer out in the General Fund statement of revenues, expenditures, and changes in fund balance?
a. Payment to Water Enterprise Fund for use of water by county departments.
b. Payment to Motor Pool Internal Service Fund for use of automobiles by county departments.
c. Payment to Debt Service Fund for debt service on general obligation debt.
d. Payment to Sewage Special Revenue Fund as a short-term loan to that fund.
Question 3. A village levied property taxes of $910,000 on January 1, 2012, for calendar year 2012 and immediately set up an allowance of $10,000 for uncollectible taxes. The village collected
$870,000 in cash during 2012. It expected to collect $22,000 of the unpaid taxes during the first 60 days of 2013 and an additional $8,000 during the rest of 2013. How much should the village recognize as property tax revenues in its 2012 General Fund financial statements?
a. $870,000
b. $892,000
c. $900,000
d. $910,000
Question 4. Based on the information in the previous scenario, how much should the village report as Deferred inflows-property taxes in its 2012 General Fund financial statements?
a. $0
b. $8,000
c. $18,000
d. $30,000
Question 5. These two events occurred in the same city toward the end of calendar year 2012:
• City employees earned $85,000 during the last week of December 2012, but were not paid until January 5, 2013.
• A city sanitation vehicle accidentally sideswiped a parked car during November 2012. The city acknowledged that it was at fault, and its attorneys expect to pay $10,000 to settle the claim. However, the city is slow in settling claims, so it probably won't pay the claim until early 2014. Based on only these two events, how much should the city report as expenditures for calendar year 2012?
a. $0
b. $10,000
c. $85,000
d. $95,000
Question 6. A state provides pension benefits to retired employees who have worked at least 5 years for the state. Based on employee salaries during 2012, the state actuary calculated that the employees earned pension benefits totaling $14 million. The state appropriated $10 million to the General Fund for payment to its Pension Trust Fund. However, the state encountered financial problems during 2012 and sent its pension system a check for $8 million in October 2012, saying that it would pay no more for the year. The Pension Trust Fund actually paid pension benefits of $5 million during 2012. How much should the General Fund recognize as pension expenditures for 2012?
a. $5 million
b. $8 million
c. $10 million
d. $14 million
Question 7. Pursuant to the law, a city authorizes imposition of a hotel occupancy tax for the sole purpose of beautifying the downtown area. During the year the city collects hotel occupancy taxes of $800,000, deposits that amount in a Downtown Redevelopment Special Revenue Fund, and spends $450,000 of it. How should the remaining $350,000 of net assets be classified in the Special Revenue Fund's balance sheet?
a. As Nonspendable fund balance
b. As Reserved fund balance
c. As Assigned fund balance
d. As Restricted fund balance
Question 8. Which of the following transactions or events best describes when a grant recipient may recognize revenues from intergovernmental grants in governmental-type funds?
a. The recipient must receive cash from the grant provider.
b. The recipient must enter into a contract with the grant provider.
c. The recipient must spend all the resources made available in the grant.
d. The recipient must comply with all grant eligibility requirements, and the resources must be "available."