ACCY 161 Test 1

  1. The cornerstone of governmental accounting includes:




    C. accountability
  2. Which of the following is not a characteristic of a fund as defined by GASB standards?



    C. a segregated quantity of cash and other financial resources on deposit with a designated trustee
  3. The correct term for the liabilities in a governmental fund statement would be?



    D. fund liabilities
  4. Fiscal accountability is found in:




    B. the governmental fund financial statements
  5. Fiscal accountability includes:




    D. both whether or to the government has raised and spent funds in accordance with an approved budget and compliance with laws and regulations
  6. The responsibility of governments to justify that their actions in the current period have complied with public decisions concerning the raising and spending of public monies in the short-term is known as:



    C. fiscal accountability
  7. The accounting system used by a state or local government must make it possible:



    A. to present fairly the financial position and results of financial operations of the government as a whole, as well as fund financial activity in conformity with GAAP, and to demonstrate compliance with finance-related legal and contractual provisions
  8. The accountability focus for the governmental funds is:



    A. fiscal
  9. The account classification for debt service, capital expenditures and current expenditures is called:




    D. character
  10. Budgetary accounting is used in the:





    C. governmental funds
  11. The short-term view of government to see if they have raised and spent financial resources in accordance with budget plan is:



    B. fiscal accountability
  12. The types of revenues to be reported at the government-wide level are:





    D. b. and d. are correct (program and general types)
  13. Whether governments use their resources efficiently and effectively in meeting operating objectives is:




    A. operational accountability
  14. In Chapter 2 there is an illustration that shows:



    C. there are 2 sets of financial statements for the GASB 34 reporting model
  15. The accountability focus for the government-wide statement is:



    A. operational
  16. The basis accounting for the government-wide statement is:



    D. accrual
  17. When a purchase order is issued:



    C. encumbrances is debited
  18. When goods are received that were on a purchase order:



    A. vouchers payable is credited
  19. For governmental accounting and reporting, the reporting entity is:



    D. the primary government and the component units
  20. The two sets of statements included for the general purpose financial statements are:




    D. fund statement and the government-wide statements
  21. The start of the dual track system begins with:



    A. budgetary accounting entries
  22. In Chapter 3 there is an illustration that shows:
    a. estimated revenues have a credit balance
    b. estimated revenues have a debit balance
    c. appropriations have a credit balance
    d. appropriations have a debit balance
    e. both a. and d. are correct
    f. both b. and c. are correct
  23. Whether current-year revenues are sufficient to pay for services provided that year and whether future taxpayers will be required to assume burdens for services previously provided is:




    B. interperiod equity
  24. The following are governmental funds:




    E. b. and c. are correct (special and debt service funds)
  25. The basis accounting for governmental funds is:



    D. modified accrual
  26. The first step in the logical flow of the budgetary control is:



    A. appropriations
  27. The GASB principles:


    C. are in addition to some of the FASB principles
  28. Governmental fund accounting is characterized by:



    B. current financial resources and modified accrual accounting
  29. In Chapter 2 an illustration shows that:




    E. a. and b. and c. are all correct (2 types of measurement focuses, 2 types of accounting, and 2 type of accountability)
  30. An entry to the encumbrances account is with:


    A. the estimated amount
  31. General capital assets used by departments accounted for by the General Fund of a governmental unit should be capitalized in:



    C. the governmental activities journal
  32. Which of the following funds is a governmental fund-type?



    C. permanent fund
  33. In accounting for state and local governments, the modified accrual basis is recommended for:



    D. governmental funds only
  34. The correct term for the liabilities in a governmental fund statement would be?



    B. fund liabilities
  35. On what should the government-wide financial statements report?



    D. all of the above
  36. The fund financial statements for governmental funds should include a:



    A. balance sheet for governmental funds
  37. The modified accrual basis of accounting is used in:



    A. the governmental fund financial statements
  38. The measurement focus that should be used in preparing fund financial statements is the:



    C. economic financial resources measurement focus
  39. Special-purpose governments provide a wide range of services to their residents, such as:




    E. none of the above
  40. The MD&A refers to:



    C. both the fund financial statements and the government-wide financial statements
  41. All un-matured long-term liabilities of the government should be accounted for in:




    C. the government-wide financial statements
  42. With regard to depreciation of general capital assets:



    A. no depreciation can be recorded in any governmental fund, but depreciation expense must be reported in the governmental activities accounts
  43. The permanent fund is used for:




    C. public-purpose trust funds
  44. Which of the following accounts of a government is credited when a purchase order is approved?




    A. reserve for encumbrances
  45. Which of the following funds should be used if resources provided by a federal grant must be segregated and used for counseling of youthful offenders?



    B. special revenue fund
  46. The measurement focus and basis of accounting of special revenue funds are most similar to:




    D. both the general fund and the permanent fund
  47. Interfund transfers and debt issue proceeds received by the General Fund would be recorded as:



    C. other financing sources
  48. Program revenues and general revenues:



    A. are shown separately on the government-wide statement
  49. Which of the following terms indicate or relate to the idea of a separate government or agency that is combined for the purposes of the whole entity:






    C. component unit
  50. Which of the following would be classified as a general revenue?



    D. fuel taxes earmarked for maintenance of roads and bridges
  51. When the expenditure budget for the General Fund is recorded, the required journal entry will include:




    C. a credit to appropriations
  52. One of the minimum requirements for general-purpose external financial reporting is(are):




    A. management's discussion and analysis (MD&A)
  53. A tax is assessed to each parcel of property to fund a new park as a result of a recent election. These funds would be most properly accounted for by:




    B. a special revenue fund
  54. Under the modified accrual basis of accounting, revenues should be recognized when:




    D. none of the above
  55. Which of the following is not a budgetary account?




    B. reserve for encumbrances
  56. Which of the following steps in the acquisition of goods and services by an activity accounted for by the General Fund occurs first?




    E. appropriation
  57. The expenditures control account of a governmental unit is debited when:



    A. supplies previously encumbered are received
  58. The difference between an interfund loan and an interfund transfer is:




    C. if it will be repaid
  59. When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order, the encumbrance account is:



    B. credited for the estimated price on the purchase order
  60. Which of the following information should be included in the financial section of a comprehensive annual financial report?




    E. #1 the basic financial statements, including noted thereto
  61. Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program or produce a net revenue?



    C. program revenues
  62. Imposed tax revenues:




    A. include property taxes
  63. Derived tax revenues:




    B. include sales taxes
  64. Other financing sources and uses are:




    D. found in the governmental fund financial statements
  65. An internal allocation of funds done on a periodic basis to prevent overspending in the early part of the budget period is called a(an):




    D. allotment
  66. Recognizing revenues when measurable and available is:




    B. modified accrual
  67. In accounting for state and local governments, the modified accrual basis is required for:



    B. governmental funds only
  68. Which of the following terms indicate or relate to the idea of the primary government and all related units:







    C. reporting entity
  69. When the entire budget is approved there will be an entry to the encumbrance account with a:



    A. neither a debit or a credit - no entry is made
  70. When the entire budget is approved there will be an entry to the fund balance account with a:



    A. either a debit or a credit
  71. When the entire budget is approved there will be an entry to the estimated revenue account with a:



    D. debit
  72. When the entire budget is approved there will be an entry to the appropriations account with a:



    D. credit
  73. When the entire budget is approved there will be an entry to the reserve for encumbrances account with a:



    A. neither a debit or a credit - no entry is made
  74. When a purchase order is cancelled there will be an entry to the reserve for encumbrances account with a:



    D. debit
  75. When a purchase order is cancelled there will be an entry to the encumbrances account with a:



    C. credit
  76. When a purchase order is cancelled there will be an entry to the appropriations account with a:



    A. neither a debit or a credit - no entry is made
  77. When a purchase order is issued there will be an entry to the reserve for encumbrances account with a:



    A. credit
  78. When a purchase order is issued there will be an entry to the encumbrances account with a:



    D. debit
  79. Harrison County receives a $100 payment on property taxes for the current year, the actual revenue for the general fund will include an entry of a:
    a. debit
    b. credit
    c. either a debit or a credit
    c. neither a debit or a credit - no entry is made
    d. neither a debit or a credit - no entry is made
  80. Harrison County receives a $100 payment on property taxes for the current year, the cash account for the general fund will include an entry of a:



    C. debit
  81. Harrison County receives a $100 payment on sales taxes for the current year, the program revenue account will include an entry of a:



    A. neither a debit or a credit - no entry is made
  82. Harrison County receives a $100 payment on sales taxes for the current year, the general revenue account will include an entry of a:



    D. credit
  83. Harrison County receives goods that were ordered in the amount of $100, the expenditure account in the general fund will include an entry of a:



    A. debit
  84. Accountability
    The requirement for government to answer to its citizenry—to justify the raising of public resources and expenditure of those resources. Also, in GASB’s view, the obligation to report whether the government operated within appropriate legal constraints; whether resources were used efficiently, economically,and effectively; whether current-year revenues were sufficient to pay for the services provided in the current year; and whether the burden for services previously provided will be shifted to future taxpayers.
  85. Accrual basis
    Revenues are recorded when earned and expenditures (or expenses) are recorded as soon as they result in liabilities, notwithstanding the receipt of cash in another accounting period.
  86. Activity
    Specific work performed by organizational components of a government for which the government is responsible. For example,food inspection is an activity performed in the dischargeof the health function.
  87. Allotment
    Part of an appropriation that may be encumbered or expended during an allotment period.
  88. Blended presentation
    Method of reporting a component unit in a similar manner to the financial data of the primary government; component unit data are combined with the fund types of the primary government and reported in the same columns as the data for the primary government except General Funds.
  89. Budget accounts
    Broad accounts for which appropriations are made; not the same as standard general ledger accounts.
  90. Appropriations
    Authorizations granted by a legislative body to incur liabilities for purposes specified in the Appropriation Act; usually limited in the amount and time when it may be expended.
  91. Character
    Basis for distinguishing expenditures according to periods they benefit.
  92. Component units
    Separate governments, agencies, or not-for-profit corporations that are combined with other component units to constitute the reporting entity.
  93. Current financial resources measurement focus
    Governmental funds currently measure and report available financial resources like cash or items expected to be converted into cash during the current period, or soon after, to pay current liabilities.
  94. Discrete presentation
    Method of reporting component unit financial data in column(s) separate from the financial data of the primary government.
  95. Derived revenue
    Non-exchange transactions, such as income or sales taxes.
  96. Economic resources measurement focus
    Government-wide attention to measuring total economic resources that flow in and out of the government.
  97. Estimated other financing uses
    Financial resources estimated to be disbursed or accrued during a period by the fund for transfer to other funds.
  98. Estimated revenue
    Accrual basis accounts: estimated revenues accruing during a given period regardless of whether or not they will be collected then.

    Modified accrual basis accounts: estimated revenues that are measurable and available.

    Cash basis accounts: estimated revenues that will be collected during a given period.
  99. Encumbrances
    To record estimated purchase orders, contracts, or salary commitments chargeable to an appropriation. The account is credited when goods or services are received and the actual expenditure of the appropriation is known.
  100. Exchange transaction
    Each party receives direct tangible benefits for the resources provided. For example, sales between a buyer and a seller.
  101. Expenditure
    Recorded when liabilities are incurred after an appropriation.

    Accrual/modified accrual basis: cost of goods or services, paid or unpaid, including expenses, provision for debt retirement not reported as a liability of the fund from which retired, and capital outlays.

    Cash basis: only actual cash disbursements for these purposes.
  102. Expense
    Charge incurred, paid or unpaid, for operation, maintenance, interest, and other charges that benefit the current period.
  103. Fiscal accountability
    Current-period financial position and budgetary compliance reported in fund-type financial statements.
  104. Function
    Group of related activities aimed at accom-plishing a major service for which a government is responsible. For example, public health is a function.
  105. Fund
    Fiscal/accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equities or balances, segregated for the purpose of carrying on specific objectives due to special regulations, restrictions, or limitations.
  106. Fund accounting
    Accounting system organized on the basis of funds, each considered a separate accounting entity; accomplished with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses. Resources are allocated to and recorded in individual funds based on the purpose they are being spent and how the spending is controlled; used by state/local government and internally by not-for-profits whose resources are restricted by donors/grantors.
  107. General fund
    Used to account for all transactions not accounted for in another fund. Note: The General Fund is used to account for the ordinary operations of a government that are financed from taxes and other general revenues.
  108. General purpose governments
    Provide many categories of services to, such as states, counties, municipalities, and townships. Typical services include public safety, road maintenance, health and welfare.
  109. General revenues
    Not directly linked to any specific function; do not produce a net revenue.
  110. Interfund transfers
    Amounts transferred from one fund to another.
  111. Interfund loans
    Loans made by one fund to another.
  112. Imposed revenue
    A category of non-exchange revenue, such as property taxes and most fines and forfeitures.
  113. Interperiod equity
    Extent to which current-period revenues are enough to pay for current-period services.
  114. Modified accrual
    Required for governmental funds; revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred.
  115. Object
    Distinguishing expenditures by the article purchased or service obtained (as distinguished from the results obtained from expenditures). Examples are personal services, contractual services, materials, and supplies.
  116. Operational accountability
    Operating results and short- and long-term financial position and the cost of providing services from an economic perspective reported in government-wide financial statements.
  117. Other financing sources
    Operating statement classification in which inflows other than revenues are reported. For example, proceeds of long-term debt and transfers in.
  118. Other financing uses
    Operating statement classification in which outflows other than expenditures are reported. For example, transfers out.
  119. Permanent fund
    Restricted resource fund where only earnings, and not principal, may be used for public programs; does not include private-purpose trust funds, in which the principal or earnings is used for the benefit of individuals, private organizations, or other governments.
  120. Primary government
    State/local general-purpose government; also, a special-purpose government that has a separately elected governing body, which is legally and fiscally independent of other state or local governments.
  121. Programs
    Activities, operations, or organizational units grouped together because they share purposes or objectives.
  122. Program revenue
    Revenue linked to a specific function/program and reported separately from general revenue on the government-wide statement of activities.
  123. Reporting entity
    The primary government and all related component units.
  124. Revenue
    Inflow of economic resources from operations  services/activities rather than from interfund transfers and debt issue proceeds.
  125. Special purpose governments
    Provide only a single function or a limited number of functions, such as independent school districts and special districts.
  126. Special revenue fund
    Specific revenue source, for a specified purpose other than debt service or capital projects. An example is a fuel tax fund used to finance highway and road construction. After the fund is established, it usually continues until discontinued or revised by legislative authority.
  127. Tax anticipation notes
    Notes (warrants) issued in anticipation of collection of taxes usually retirable only from tax collections.
  128. Three types of funds found in the governmental funds are:




    B. governmental, proprietary, trust
  129. Program revenues:



    A. are used to calculate net expenses
  130. Long-term assets like vehicles would be accounted for with:




    C. economic resources focus
  131. An example of other financing sources would be:




    D. both transfers form other funds and proceeds from borrowings
Author
SusanneS28
ID
238325
Card Set
ACCY 161 Test 1
Description
ACCY 161 Test 1
Updated