Documente Academic
Documente Profesional
Documente Cultură
Exercise 1: For each of the following, select the letter corresponding with the best answer.
3. Which of the following revenues of the General Fund are usually recorded before they are
actually received?
a. Sales taxes.
b. Property taxes.
c. Fines and Penalties.
d. Parking meter receipts.
4. Which of the following will increase the fund balance of a governmental unit at the end of a
fiscal year?
a. Estimated revenues are less than expenditures and reserve for encumbrances.
b. Appropriations are less than expenditures and encumbrances.
c. Revenues are greater than expenditures and encumbrances.
d. Appropriations are greater than estimated revenues.
7. Charles County received the following proceeds that are legally restricted:
Taxes assessments to install sidewalks $2,000,000
Motel taxes to promote tourism 400,000
What amount should be reported in the County’s special revenue funds?
a. $2,400,000
b. $2,000,000
c. $ 400,000
d. $0
1. Brownville adopted its budget for the fiscal year ending June 30 with $5,000,000 for
estimated revenues. Actual revenues for the year were $4,900,000. In closing the budgetary
accounts for the year,
a. Revenues Control will be debited for $100,000.
b. Estimated Revenues Control will be debited for $100,000.
c. Revenues Control will be debited for $4,900,000.
d. Estimated Revenues Control will be credited for $5,000,000.
2. For the coming budgetary year Johnson County’s General Fund expects the following inflow
of resources:
Property taxes, licenses and fines $7,000,000
Proceeds of debt issue 2,000,000
Interfund transfer from enterprise fund 600,000
In the budgetary entry, what amount should Johnson County record for Estimated Revenues:
a. $9,600,000
b. $7,000,000
c. $9,000,000
d. $7,600,000
3. Tom City received equipment that had been approved for purchase (i.e., purchase order) by
the General fund earlier that same fiscal year. Payment is due in 30 days. What effect will
receipt of the equipment have on the following accounts?
Encumbrances Expenditures
a. Decrease Increase
b. Decrease No effect
c. No effect Increase
d. No Effect No effect
4. The City of Elmwood reported the following for the fiscal year ended Dec. 31, 2017:
Purchase orders authorized by appropriations
and outstanding as of December 31, 2017 $300,000
Expenditures authorized by 2017 appropriations $2,900,000
Expenditures authorized by 2016 appropriations $200,000
Unencumbered and unexpended balance of
2017 appropriations $500,000
Assume that appropriations do not lapse. What amount would be reported for Expenditures
(and Encumbrances, if appropriate) in the Statement of Revenues, Expenditures and Changes
in Fund Balances?
a. $2,900,000
b. $3,100,000
c. $3,200,000
d. $3,400.000
5. A government recognizes property tax revenue early as GASB permits. Property taxes levied
in 2016 should be reported as General Fund revenues in fiscal year 2017:
a. For the amount collected in 2017 only.
b. For the amount collected in 2016 and 2017 only.
c. For the amount expected to be collected in 2017 after 60 days.
d. Regardless of the fiscal year in which they are collected.
6. York County estimated 2 percent of its property taxes would by uncollectible. During the
year, the County wrote off several accounts. Assuming the 2 percent estimate is still deemed
to be appropriate at year-end, what effect will the recording of an allowance for estimated
uncollectible taxes receivable and the subsequent write-offs have on the following?
Revenues Expenditures
a. Decrease Increase
b. Decrease No effect
c. No effect Increase
d. No effect No effect
7. West Bend County created a special revenue fund, the Summer Employment Grant Fund, to
account for the proceeds of a federal grant for summer youth employment. During the year
ended June 30, 2017, the County received an award for this reimbursement grant in the
amount of $1,000,000. Grant expenditures were in June 2017, $300,000; in July 2017,
$350,000; and in August 2017, $350,000. The cash was received from the federal
government on August 31, 2017. How much revenue should be recognized in the special
revenue fund for the year ended June 30, 2017?
a. $0
b. $1,000,000
c. $ 300,000
d. $ 650,000
8. Which of the following legally restricted revenues should be accounted for in a special
revenue fund?
a. Taxes restricted for payment of long-term debt.
b. Income earned on investments held for a government’s pension plan.
c. Federal government grant to upgrade security equipment at a city’s airport (an enterprise
fund).
d. None of the above.