Question 1

The presentation of a governmental fund budgetary comparison statement or schedule may be part of the

Accepted Answer

The presentation of a governmental fund budgetary comparison statement or schedule is part of the basic financial statements and includes the General Fund and certain Special Revenue Funds that have a legally adopted annual budget. This allows for the comparison of actual financial results with the budgeted amounts for the most significant funds.

Question 2

Which of the following budgetary entries would the town of Geneva make upon adoption of its Special Revenue Fund Budget for the year? Assume the following: Estimated Revenues $6,400,000
Appropriations 6,080,000

Accepted Answer

The answer of Which of the following budgetary entries would...

Question 3

The Town of Red Herring issued $60,000 of purchase orders. Assume that when all orders were received, the actual cost was $59,000. How much would be recorded as expenditures when the purchase orders were issued?

Accepted Answer

Expenditures are recorded when goods or services are received, not when purchase orders are issued.

Question 4

The following information pertains to the Scott County General Fund: 
$\begin{array}{lr}
\text { Appropriations } & \$ 15,000,000 \
\text { Estimated Revenues } & 14,000,000 \
\text { Expenditures } & 14,800,000 \
\text { Revenues } & 14,200,000
\end{array}$
The change in Scott County's General Fund fund balance for the year is a

Accepted Answer

The change in the fund balance is calculated by subtracting the expenditures from the revenues. Here, $14,200,000 (Revenues) - $14,800,000 (Expenditures) = -$600,000, indicating a $600,000 decrease in the fund balance.

Question 5

The Town of Red Herring issued $60,000 of purchase orders. Assume that when all orders were received, the actual cost was $59,000. How much would be recorded as expenditures when the goods are received?

Accepted Answer

The actual cost of the goods received was $59,000. Therefore, only $59,000 should be recorded as expenditures when the goods are received. The $1,000 difference between the amount of purchase orders issued and the actual cost will be recorded as a credit to accounts payable.

Question 6

During the year, Nathan Township amended their General Fund budget to reflect an increase in appropriations of $50,000 to be funded by an appropriation of existing fund balance. What would the necessary$\textbf{    budgetary entry    }$   be to reflect this amendment?

Accepted Answer

The answer of During the year, Nathan Township amended their...

Question 7

A city ordered uniforms with an expected cost of $6,000 for policemen. This amount is encumbered. The uniforms are received with an invoice of $5,900. The entries to record the receipt of the uniforms should include a credit to

Accepted Answer

The encumbrance is reduced by the amount of the invoice, which is $5,900.

Question 8

The Town of Red Herring issued $60,000 of purchase orders and recorded the encumbrance. Assume that when all orders were received, the actual cost was $59,000. What would be the net change in the unencumbered balance when the goods are received?

Accepted Answer

When the goods are received, the encumbrance of $60,000 is reversed, and the actual expenditure of $59,000 is recorded, resulting in a net increase of $1,000 in the unencumbered balance.

Question 9

A governmental fund budgetary comparison statement or schedule should

Accepted Answer

A governmental fund budgetary comparison statement or schedule should be prepared on the same basis the budget was enacted to provide a comparison between the actual results and the budgeted amounts. It allows for an analysis of whether the actual amount spent or generated is above or below the budgeted amount.

Question 10

Which of the following is not a common revenue source in a governmental fund budget?

Accepted Answer

Other financing sources, such as bond proceeds or grants, are not typically considered revenue sources in a governmental fund budget. The other options (property taxes, charges for services, and investment income or interest) are common sources of revenue in governmental fund budgets.

Question 11

A city ordered uniforms with an expected cost of $6,000 for policemen. This amount is encumbered. The uniforms are received with an invoice of $5,900. The entries to record the receipt of the uniforms should include a debit to

Accepted Answer

Encumbrances are recorded at the estimated cost, so the original encumbrance of $6,000 is not adjusted when the actual cost is known. Instead, the difference between the original encumbrance and the actual invoice is recorded as Encumbrances Outstanding, which in this case is $100 ($6,000 - $5,900). Therefore, the entry to record the receipt of the uniforms should include a debit to Encumbrances Outstanding of $6,000.

Question 12

If a government uses a Budgetary Fund Balance account, the account balance

Accepted Answer

The Budgetary Fund Balance account reflects the planned increase or decrease in fund balance, representing the difference between estimated revenues and appropriations, not actual figures.

Question 13

A city ordered uniforms with an expected cost of $6,000 for policemen. The credit required to record this transaction is

Accepted Answer

The answer of A city ordered uniforms with an expected...

Question 14

The following information pertains to the Richardson County General Fund: $\begin{array}{lr}
\text { Appropriations } & \$ 10,000,000 \
\text { Estimated Revenues } & 12,000,000 \
\text { Expenditures } & 12,800,000 \
\text { Revenues } & 9,200,000 \
\text { Long-term note issue proceeds } & 1,000,000 \
\text { Short-term note principal retirements } & 250,000 \
\text { Operating transfers to other funds } & 75,000
\end{array}$
The change in Richardson County's General Fund fund balance for the year is a

Accepted Answer

The answer of The following information pertains to the Richardson...

Question 15

When preparing a budgetary comparison statement for a General Fund, which column is optional?

Accepted Answer

The variance column comparing the final budget to the actual amounts on a budgetary basis is optional in a budgetary comparison statement for a General Fund.

Question 16

Which of the following budgetary entries would the township of Brussels make upon adoption of its General Fund budget for the year? Assume the following:

Accepted Answer