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CHAPTER 3 HOMEWORK   1

Accounting

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CHAPTER 3 HOMEWORK

 

1. Which of the following best describes the recommended format for the government-wide statement of activities?

 

2. Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities?

3. Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year?

4. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation?

5. Which of the following statements is true for other financing uses but is not true for expenditures?

6. An internal allocation of funds on a periodic basis, which is often used to regulate the use of appropriations over a budgetary period, is called

7. According to GASB standards, expenditures are classified by

8. Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of

9. Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. This type of budgetary control is achieved by reviewing:

10. Spruce City’s finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000. Which of the following is the correct journal entry to record the budget?

11. Which of the following is correct concerning the presentation of the budgetary comparison schedule?

12. If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded?

13. If it is in accordance with the government’s policies, which of the following budgetary accounts can remain open at the fiscal year-end?

14. Which of the following best identifies when an encumbrance is recorded?

15. Supplies ordered by the Public Works function of the General Fund were received at an actual price that was less than the estimated price listed on the purchase order. What effect will this have on Public Work’s appropriations available balance?

16. The following information is provided about the Town of York’s General Fund operating statement and budgetary accounts for the fiscal year ended September 30. (Note: The town has no restricted, committed, or assigned fund balances.)

Estimated revenues                   $32,150,000

Revenues                                  32,190,000

Appropriations                          32,170,000

Expenditures                             32,185,000

Fund Balance- Unassigned        500,000

 

1. PREPARE JOURNAL ENTRY TO RECORD THE BUDGET
2. DID THE TOWN OF YORK ENGAGE IN IMPRDENT BUDGETING PRACTICE BY AUTHORIZING A GREATER AMAOUNT OF EXPENDITURES THAN REVENUES ESTIMATED FOR THE YEAR, OR POTENTIALLY VIOLATE TOWN OR STATE BALANCED-BUDGET LAWS.
3. CALCULATE THE EOY BALANCE FOR THE FUND BALANCE- UNASSIGNED THAT WOULD BE REPORTED ON THE TOWN’S BALANCE SHEET PREPARED AS OF SET 2016

 

17. During July, the first month of the fiscal year, the Town of Willingdon issued the following purchase orders and contracts.

General government                                          800,000

Public safety                                                     400,000

Public works                                                     75,000

Health and welfare                                             65,000

Miscellaneous                                                   25,000

Total purchase orders and contracts                   1,365,000

 

1. PREPARE THE GENERAL JOURNAL ENTRY TO RECORD THE ISSUANCE OF THE PURCHASE ORDERS AND SONTRACTS.
2. SHOW ENTRIES IN SUBSIDIARY LEDGER ACCOUNTS