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| 1.
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Which of the following is true of the General Fund? |
| | A) | A governmental reporting entity may display only one General Fund in its basic financial statements |
| | B) | The General Fund is used to finance the general administration of the government |
| | C) | The General Fund accounts for resources that finance the traditional services provided to the people |
| | D) | All of the above |
| | E) | None of the above |
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| 2.
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Which of the following statements about budget comparisons for the General Fund and major special revenue funds for which an annual budget is legally adopted is true? |
| | A) | Comparisons of budget and actual results are required as part of Required Supplementary Information. |
| | B) | Comparisons of budget and actual results may take the form of schedules or financial statements. |
| | C) | Comparisons of budget and actual results are required only for those parts of the budget that were amended during the fiscal year. |
| | D) | Both A and B |
| | E) | Both B and C |
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| 3.
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Which of the following is true of a special revenue fund? |
| | A) | It may be used to account for federal and state grants that are restricted as to purpose or to account for libraries and other activities supported by special taxes |
| | B) | When a tax or other revenue source is restricted to a specified purpose by a legislative body, use of a special revenue fund assists in demonstrating compliance with that purpose |
| | C) | Accounting and reporting standards are identical to those applicable to the General Fund |
| | D) | All of the above |
| | E) | None of the above |
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| 4.
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What is an appropriations budget for the General Fund? |
| | A) | An estimate of the sources of revenue expected to be generated by the General Fund during the budget period and authorization for the governmental entity to generate such revenues through taxes and other specified means |
| | B) | A statement of the amount of change expected in the Fund Balance during the budget period |
| | C) | Legal authorization to incur liabilities during the budget period for specified purposes and not to exceed the amount specified for each purpose |
| | D) | A flexible budget prepared and used by the administrators of a state or local government, to maintain control over the entity's resources and ensure that the government does not operate at a deficit during the budget period |
| | E) | None of the above |
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| 5.
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When a liability is incurred as authorized by an appropriation, the appropriation is said to be: |
| | A) | Lapsed |
| | B) | Expended |
| | C) | Encumbered |
| | D) | Appropriated |
| | E) | None of the above |
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| 6.
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When a purchase order or contract is issued as authorized by an appropriation, the appropriation is said to be |
| | A) | lapsed |
| | B) | expended |
| | C) | encumbered |
| | D) | expensed |
| | E) | None of the above |
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| 7.
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Which of the following funds would report fixed assets and long-term debt on the balance sheet? |
| | A) | General Fund |
| | B) | Special Revenue Fund |
| | C) | Debt Service Fund |
| | D) | All of the above |
| | E) | None of the above |
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| 8.
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Which of the following would be recorded in the General Fund as an Other Financing Source? |
| | A) | charges for services |
| | B) | a transfer received from another fund |
| | C) | property taxes |
| | D) | a grant received from the federal government |
| | E) | both B and C |
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| 9.
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Which of the following is not recorded in the General Fund as an expenditure? |
| | A) | an amount paid for wages of city employees |
| | B) | a purchase of office supplies |
| | C) | a purchase of equipment for the city's police department |
| | D) | a transfer to a debt service fund |
| | E) | all of these items are recorded as expenditures |
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| 10.
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At June 30, 20xx, the end of the government's fiscal year, the General Fund reports total assets equaling $10,750,000, and total liabilities equaling $5,275,000. It further reports a reservation of fund balance of $1,000,000. The total fund balance for the General Fund is equal to: |
| | A) | $16,025,000 |
| | B) | $17,025,000 |
| | C) | $ 5,475,000 |
| | D) | $ 4,475,000 |
| | E) | None of the above |
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| 11.
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At June 30, 20xx, the end of the government's fiscal year, the General Fund reports total assets equaling $10,750,000, and total liabilities equaling $5,275,000. It further reports a reservation of fund balance of $1,000,000. The amount reported as Fund Balance - Unreserved for the General Fund at June 30, 20xx is equal to: |
| | A) | $ 4,475,000 |
| | B) | $17,025,000 |
| | C) | $ 5,475,000 |
| | D) | $16,025,000 |
| | E) | None of the above |
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| 12.
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Which of the following is defined as increases in fund financial resources other than from interfund transfers and debt proceeds? |
| | A) | Other financing sources |
| | B) | Revenues |
| | C) | Expenditures |
| | D) | Other financing uses |
| | E) | None of the above |
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| 13.
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Which of the following may refer to a transfer out of a fund to another fund? |
| | A) | Expenditures |
| | B) | Other financing sources |
| | C) | Other financing uses |
| | D) | Revenues |
| | E) | None of the above |
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| 14.
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Which of the following is NOT an example of an expenditure by the General Fund? |
| | A) | Payment of employees' salaries |
| | B) | A transfer out to the Debt Service Fund for payment of interest and principal on general obligation debt |
| | C) | Purchase of a parcel of land to be used for a park |
| | D) | Purchase of supplies to be used by the Finance Department |
| | E) | None of the above |
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| 15.
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During 2007, a transfer of cash of $500,000 occurred between the General Fund and a capital projects fund of Layton City. The cash was to be used in construction of a records storage facility for the city. How should each fund account for the transfer? |
| | A) | The General Fund should record the transfer as a Transfer Out; the capital projects fund should account for the transfer as a Transfer In |
| | B) | The General Fund should record the transfer as an expenditure; the capital projects fund should account for the transfer as a Transfer In |
| | C) | The General Fund should record the transfer as an expenditure; the capital projects fund should account for the transfer as a revenue |
| | D) | The General Fund should record the transfer a Transfer Out; the capital projects fund should account for the transfer as a liability |
| | E) | None of the above |
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| 16.
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The budgetary comparison schedule (or statement) is NOT required to include which of the following? |
| | A) | A variance column between the final budget and actual |
| | B) | The original budget |
| | C) | Actual amounts of revenues, expenditures, and other financing sources and uses |
| | D) | The final budget |
| | E) | None of the above |
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| 17.
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The budget for the General Fund for Hart County has been legally adopted for the fiscal year ending June 30, 2007. Revenues are estimated to be $1,800,000. Other financing sources are estimated to be $200,000. The journal entry to record the estimated revenues and other financing sources for the fiscal year would be: |
| | A) | A credit to Estimated Revenues Control for $1,800,000; a credit to Estimated Other Financing Sources Control for $200,000; a debit to Budgetary Fund Balance for $2,000,000 |
| | B) | A credit to Estimated Revenues Control for $1,800,000; a debit to Estimated Other Financing Sources Control for $200,000; a debit to Budgetary Fund Balance for $1,600,000 |
| | C) | A debit to Estimated Revenues Control for $1,800,000; a credit to Estimated Other Financing Sources Control for $200,000; a credit to Budgetary Fund Balance for $1,600,000 |
| | D) | A debit to Estimated Revenues Control for $1,800,000; a debit to Estimated Other Financing Sources Control for $200,000; a credit to Budgetary Fund Balance for $2,000,000 |
| | E) | None of the above |
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| 18.
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The budget for the General Fund for Hart County has been legally adopted for the fiscal year ending June 30, 2007. Expenditures are estimated to be $1,250,000. Other financing uses are estimated to be $400,000. The journal entry to record the appropriations and estimated other financing uses for the fiscal year would be: |
| | A) | A credit to Budgetary Fund Balance for $1,650,000; a debit to Appropriations Control for $1,250,000; a debit to Estimated Other Financing Uses Control for $400,000 |
| | B) | A debit to Budgetary Fund Balance for $1,650,000; a credit to Appropriations Control for $1,250,000; a credit to Estimated Other Financing Uses Control for $400,000 |
| | C) | A debit to Budgetary Fund Balance for $850,000; a credit to Appropriations Control for $1,250,000; a debit to Estimated Other Financing Uses Control for $400,000 |
| | D) | A credit to Budgetary Fund Balance for $850,000; a debit to Appropriations Control for $1,250,000; a credit to Estimated Other Financing Uses Control for $400,000 |
| | E) | None of the above |
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| 19.
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The budget for the General Fund for Hart County has been legally adopted for the fiscal year ending June 30, 2007. Revenues are estimated to be $1,800,000. Other financing sources are estimated to be $200,000. Expenditures are estimated to be $1,250,000. Other financing uses are estimated to be $400,000. Assume that Hart County records the budget in one entry. The entry would be: |
| | A) | A debit to Estimated Revenues Control for $1,800,000; a debit to Estimated Other Financing Sources Control for $200,000; a credit to Appropriations Control for $1,250,000; a credit to Estimated Other Financing Sources Control for $400,000; and a credit to Budgetary Fund Balance for $350,000 |
| | B) | A credit to Estimated Revenues Control for $1,800,000; a credit to Estimated Other Financing Sources Control for $200,000; a debit to Appropriations Control for $1,250,000; a debit to Estimated Other Financing Sources Control for $400,000; and a debit to Budgetary Fund Balance for $350,000 |
| | C) | A debit to Estimated Revenues Control for $1,800,000; a credit to Estimated Other Financing Sources Control for $200,000; a debit to Appropriations Control for $1,250,000; a credit to Estimated Other Financing Sources Control for $400,000; and a credit to Budgetary Fund Balance for $1,850,000 |
| | D) | A credit to Estimated Revenues Control for $1,800,000; a debit to Estimated Other Financing Sources Control for $200,000; a debit to Appropriations Control for $1,250,000; a credit to Estimated Other Financing Sources Control for $400,000; and a debit to Budgetary Fund Balance for $150,000 |
| | E) | None of the above |
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| 20.
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Which of the following accounts would NOT be used in recording the budget of the General Fund? |
| | A) | Estimated Revenues |
| | B) | Appropriations |
| | C) | Budgetary Fund Balance |
| | D) | Other Financing Sources |
| | E) | Each of the above accounts is used in recording the budget. |
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| 21.
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When the city of Atlantic recorded its General Fund budget for 2007, it estimated total revenues of $8,500,000 and recorded appropriations of $8,200,000 and an estimated other financing use of $100,000. Near the end of the year, the city council approved a budget amendment, increasing estimated revenues by $100,000 and appropriations by $150,000. This budget amendment would be recorded with |
| | A) | A debit to Estimated Revenues Control for $100,000; a debit to Budgetary Fund Balance for $50,000; and a credit to Appropriations Control for $150,000 |
| | B) | A debit to Appropriations Control for $150,000; a credit to Estimated Revenues Control for $100,000; and a credit to Budgetary Fund Balance for $50,000 |
| | C) | A debit to Budgetary Fund Balance for $50,000 and a credit to Appropriations Control for $50,000 |
| | D) | A debit to Expenditures Control for $150,000; a credit to Revenues Control for $100,000; and a credit to Fund Balance - Unreserved for $50,000 |
| | E) | None of the above |
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| 22.
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During the fiscal year, the General Fund collected revenues in cash in the amount of $1,000,000. These revenues were not susceptible to accrual. The entry to record the collection would be: |
| | A) | A debit to Cash for $1,000,000 and a credit to Accounts Receivable for $1,000,000 |
| | B) | A debit to Cash for $1,000,000 and a credit to Estimated Revenues Control for $1,000,000 |
| | C) | A debit to Cash for $1,000,000 and a credit to Revenues Control for $1,000,000 |
| | D) | A debit to Accounts Receivable for $1,000,000 and a credit to Revenues Control for $1,000,000 |
| | E) | None of the above |
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| 23.
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During the fiscal year ending June 30, 2007, the General Fund for Hart County issued purchase orders amounting to $2,000. Throughout the fiscal year, some of the goods and services specified in those purchase orders were received, amounting to $1,900 of the total ordered. Invoices for those goods and services amounted to $1,850. The journal entry to record the issuance of the purchase orders would be: |
| | A) | A credit to Encumbrances Control for $2,000 and a debit to Budgetary Fund Balance — Reserved for Encumbrances for $2,000 |
| | B) | A debit to Expenditures Control for $2,000 and a credit to Budgetary Fund Balance — Reserved for Encumbrances for $2,000 |
| | C) | A debit to Budgetary Fund Balance — Reserved for Encumbrances for $2,000 and a credit to Encumbrances for $2,000 |
| | D) | A debit to Encumbrances Control for $2,000 and a credit to Budgetary Fund Balance — Reserved for Encumbrances for $2,000 |
| | E) | None of the above |
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| 24.
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During the fiscal year ending June 30, 2007, the General Fund for Hart County issued purchase orders amounting to $2,000. Throughout the fiscal year, some of the goods and services specified in those purchase orders were received, amounting to $1,900 of the total ordered. Invoices for those goods and services amounted to $1,850. The journal entry or entries required at the time the goods and services were received was: |
| | A) | A debit to Expenditures Control for $1,850 and a credit to Accounts Payable for $1,850 |
| | B) | A debit to Budgetary Fund Balance - Reserved for Encumbrances for $1,900 and a credit to Encumbrances Control for $1,900; a debit to Expenditures Control for $1,850 and a credit to Accounts Payable for $1,850 |
| | C) | A debit to Encumbrances Control for $1,900 and a credit to Budgetary Fund Balance - Reserved for Encumbrances for $1,900; a debit to Expenditures Control for $1,850 and a credit to Accounts Payable for $1,850 |
| | D) | A debit to Budgetary Fund Balance - Reserved for Encumbrances for $1,850 and a credit to Encumbrances for $1,850; a debit to Expenditures Control for $1,850 and a credit to Accounts Payable for $1,850 |
| | E) | None of the above |
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| 25.
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In 2007, the city council of Waverly appropriated $3,200,000 of General Fund resources for Public Safety. As of September 18, 2007, $2,190,000 had been expended for Public Safety, and encumbrances of $158,000 were still open for purchase orders not yet received. At that date, what was the amount of the Unexpended Appropriations Balance for Public Safety? |
| | A) | $1,010,000 |
| | B) | $852,000 |
| | C) | $1,168,000 |
| | D) | $3,042,000 |
| | E) | None of the above |
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| 26.
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Which of the following is NOT a commonly used major classification of revenue sources? |
| | A) | Capital outlay |
| | B) | Taxes |
| | C) | Charges for services |
| | D) | Fines and forfeits |
| | E) | None of the above |
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| 27.
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Assume the following for the City of T: Residual revenue to be earned from property taxes is $5,000,000. The expected collection rate is 97%. The net assessed valuation of taxable property within City of T's jurisdiction is $300,000,000. What is the property tax rate per $100 of assessed valuation? |
| | A) | $1.67 |
| | B) | $1.78 |
| | C) | $1.72 |
| | D) | $1.62 |
| | E) | None of the above |
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| 28.
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Which of the following is NOT an example of a classification of appropriations and expenditures? |
| | A) | Character |
| | B) | Object |
| | C) | Function |
| | D) | Program |
| | E) | None of the above |
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