ACC431: QUIZ 2 ANSWERS

1.

True/False: "Budgetary accounts used in the Gener...

Points:0.5

"Budgetary accounts used in the General Fund include Estimated Revenues, Estimated Other Financing Sources,
Appropriations, Estimated Other Financing Uses, and Encumbrances. "
True
False

2.

True/False: "GASB standards require that all stat...

Points:0.5
"GASB standards require that all state and local governments present a statement of revenues, expenditures, and changes
in fund balances-budget and actual for the General Fund and major special revenue funds for which annual budgets have
been legally adopted. "
True
False

3.

True/False: "On the government-wide statement of ...

Points:0.5
"On the government-wide statement of activities, depreciation expense for assets that essentially benefit all functions, such
as the city hall, may be reported as a separate line item or on the same line as the General Government or similar function. "
True

False

4.

True/False: Available means that a revenue or oth...

Points:0.5
Available means that a revenue or other financing source is expected to be collected during the current fiscal period or within
one month of the fiscal year end.
True
False

5.

True/False: All purchases of goods and services a...

Points:0.5

All purchases of goods and services and all interfund transfers of the General Fund are recorded as Expenditures.
True
False

6.

True/False: "A payment made by a city-owned utili...

Points:0.5

"A payment made by a city-owned utility to the General Fund of the city in lieu of taxes is an example of an ""internal
exchange transaction."" "
True

False

7.

True/False: Year-end interfund receivable or paya...

Points:0.5

Year-end interfund receivable or payable balances will appear in the line item internal balances within their respective
columns on the government-wide statement of net position.
True
False

8.

True/False: The Governmental Activities column of...

Points:0.5
The Governmental Activities column of the government-wide statement of net position reports both current and noncurrent
assets and liabilities.
True
False

9.

True/False: Estimated uncollectible tax amounts a...

Points:0.5
Estimated uncollectible tax amounts are recorded in the General Fund general journal as a reduction in revenues and in the
governmental activities journal as a bad debt expense.
True

False

10.

True/False: Encumbrance accounts need not be clos...

Points:0.5
Encumbrance accounts need not be closed at year-end if the government is required or intends to honor the encumbrances
outstanding at year-end.
True
False

11.

True/False: Encumbrances Outstanding is shown on ...

Points:0.5

Encumbrances Outstanding is shown on the balance sheet as a restriction on fund balance.

True
False

12.

True/False: Encumbrance accounting is required in...

Points:0.5

Encumbrance accounting is required in the accounting for payroll of governmental funds.

True
False

13.

Short Answer: The City of Jackson Hole adopted the ...

Points:1

The City of Jackson Hole adopted the following General Fund budget for fiscal year 2017:
Estimated revenues:
Taxes
$3,000,000
Intergovernmental revenues 1,000,000
Licenses and permits
400,000
Fines and forfeits
150,000
Miscellaneous revenues
100,000
Total estimated revenues $4,650,000
Appropriations:
General government
Public safety
Public works
Health and welfare
Miscellaneous
Total appropriations

$1,000,000
2,000,000
950,000
850,000
50,000
$4,850,000

Prepare a summary general journal entry to record the adopted budget at the beginning of FY 2017. You may ignore entries
in the subsidiary ledger accounts.

14.

Short Answer: The City of Timberline recorded its F...

Points:1
The City of Timberline recorded its FY 2017 property tax levy in the General Fund. It was estimated that
$60,000 would be uncollectible. When the tax levy is recorded, indicate whether each of the following

accounts of the General Fund should be debited (D), credited (C), or is not affected (N).
_____ 1.Taxes Receivable Current
_____ 2.Deferred Inflow of Resources
_____ 3.Estimated Uncollectible Current Taxes
_____ 4.Revenues
_____ 5.Estimated revenues

15.

Essay: The following transactions occurred f...

Points:2
The following transactions occurred for the City of Fontaines General Fund.
1. The budget prepared for the fiscal year included Total estimated revenues of $2,774,000 and appropriations of
$2,693,000.
2. Encumbrances issued against the appropriations during the year were $931,000.
3. The current years tax levy of $2,005,000 was recorded; uncollectibles were estimated as $65,000.
4. Collections of delinquent taxes from prior years levies totaled $132,000; collections of the current years levy totaled
$1,459,000.
5. Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in
Transaction (2) of this problem. The estimated liability was $851,200. Actual costs were $850,500.
6. Revenue other than taxes collected during the year consisted of licenses and permits, $373,000; intergovernmental
revenue, $400,000; and $66,000 of miscellaneous revenues.
7. Payments on Vouchers Payable totaled $1,505,000.
Prepare journal entries in the General Fund general journal to record the transactions. (Subsidiary detail may be omitted.)
ANSWER: 13.

CITY OF JACKSON HOLE-JOURNAL ENTRIES

GENERAL LEDGER

General Fund:
ESTIMATED REVENUES
BUDGETARY FUND BALANCE
APPROPRIATIONS

Debits

Credits

4,650,000
200,000
4,850,000

ANSWER: 14. 1. D, 2. N, 3. C, 4. C, 5. N

15.