Gov. Wk 2 IP 2

Ch2 9   In accounting for state and local governments the modified accrual basis is required for   Multiple Choice   Proprietary and fiduciary funds.   Governmental funds.   Governmental and fiduciary funds.   Governmental and internal service funds.   10   Under the modified accrual basis of accounting, revenues should be recognized when   Multiple Choice   Earned.   Collected in cash.   Authorized by the budget ordinance.   Measurable and available.

Ch4 9   Which of the following accounts would not be closed at the end of each fiscal year?   Multiple Choice   Fund balance.   Estimated revenues.   Interfund transfers out.   Expenditures.   10   An interfund transfer in should be reported in a governmental fund operating statement as a(an):   Multiple Choice   Revenue.   Due from other funds.   Other financing source.   Other financing use.

Mulitple choice question In the federal government, which organizations make appropriations and which make apportionments?   Select one: a. The Congress makes appropriations, and the Treasury Department appropriates to individual departments the total amount apportioned by the Congress. b. The Congress makes appropriations, and the Office of Management and Budget periodically apportions parts of the appropriations to departments. c. The Congress makes appropriations, and department heads apportion the appropriations to individual agencies or divisions within the department. d. The President makes appropriations, and department heads periodically apportion parts of the appropriations to agencies in the department.

Ch2 1 Activities a local government can engage in are classified as governmental, business-type, or fiduciary.   True or False   2 Only those governmental and proprietary funds that meet the GASB size criteria for major funds are reported in separate columns of the governmental and proprietary fund financial statements.   True or False

According to PAS 20 Accounting for Government Grants and Disclosure of Government Assistance, which of the following is a government grant? a. Tax benefits Free technical or marketing advice Public improvements that benefit the entire community Provision of guarantees Noninterest-bearing loan from the government   According to PAS 20 Accounting for Government Grants and Disclosure of Government Assistance, which of the following is not a government grant? Aid from the government to compensate for casualty losses already incurred. Cash received from the government to be used to acquire land. Government procurement policy that is responsible for a portion of the entity’s sales. Aid from the government to defray expenses which are yet to be incurred.

T/F questions 1) Government business type activities provide services to users for fees that are intended to recover all or a portion of the costs of providing the services. 2) General governmental activities provide goods and services to citizens without regard to their ability to pay. 3) Proprietary funds report revenues and expenses using a modified-accrual basis of accounting. 4) The governmental fund accounting equation is Current Assets - Current Liabilities = Fund Balance. 5) Enterprise funds are used to account for business-type activities that serve primarily internal customers.   27) A restricted fund balance represents amounts that can only be spent for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. 28) Government enter the annual budget in the journal by recording a debit to the appropriations account and a credit to estimated revenues. 29) Under accrual accounting, revenues are generally recognized in the…

Ch3 9.   The Encumbrances account is properly termed a   Multiple Choice   Long-term liability.   Reservation of unassigned fund balance.   Budgetary account.   Current liability if paid within a year; otherwise, long-term debt.   10.   When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to:   Multiple Choice   Encumbrances.   Equipment.   Expenditures.   Appropriations.

The following events take place: 1. 2. 3. James Smith died and left 100 acres of undeveloped land to the city for a future park. He acquired the land at $100 an acre, but at the date of his death, the land was appraised at $7,200 an acre. The city authorized the transfer of $110,000 of general revenues and the issuance of $1,050,000 in general obligation bonds to construct improvements on the donated land. The bonds were sold at par. The improvements were completed at a cost of $1,160,000, and the operation of the park was turned over to the City Parks Department. Prepare entries in general journal form to record these transactions in the proper fund(s). Designate the fund in which each transaction is recorded. If the transaction did not result in a journal entry to a government fund, record the journal entry needed to reflect the information in the government-wide Statement of Net Position. (Credit account titles are automatically indented when amount is entered. Do not indent…

42. A certification on the availability of allotment is required before a disbursement of government funds is made. According to the GAM for NGAs, who shall issue this certification? Budget officer Chief accountant Head of the agency Requisitioning Individual

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Exercise 7-17 (Algo) Part 4 During the current fiscal year, the Palm Springs government recorded a $16,200 transfer from the General Fund to an internal service fund, a $26,400 transfer from the General Fund to an enterprise fund, a $6,300 transfer from an enterprise fund to an internal service fund, and a $11,800 transfer from an enterprise fund to the General Fund. In the Business-type Activities column of the government-wide financial statements, Palm Springs should report Multiple Choice Net transfers out of $11,800. Net transfers in of $32.700. Net transfers out of $5,500. Net transfers in of $8,300.

Ch3 7.   Which of the following would always be classified as a general revenue?   Multiple Choice   Grant proceeds.   Special assessment charges for snow removal.   Library fines.   Fuel taxes earmarked for maintenance of roads and bridges.   8.   According to GASB standards, which of the following is not classified as a budgetary account?   Multiple Choice   Encumbrances.   Encumbrances Outstanding.   Estimated Revenues.   Appropriations.

Exercise E10-1 1-10, please. Thank you.

C. Using the contents presented in the Units supported by information in the relevant IPSASs, give a comprehensive definition (with examples) of revenue and expenditure appropriate for a Central Government.

(a)     Financial reporting in the public sector involves reporting on the government’s financial position and its financial performance. Essentially, it concerns a process of communicating the financial information, whereby elected official make informed choices about how to use the government’s limited resources to best serve the interest of the public. Discuss FOUR (4) objectives of financial reporting.                  (b)     All government revenues and monies received have to be accounted for into a fund known as the Consolidated Fund. Fund Accounting is a self-contained accounting entity with its own assets, liabilities, revenues, expenditures and fund balance. It is the financial accounting techniques adopted and reported in terms of funds in the operating statements and balance sheet of public sector organizations. There are three types of Consolidated Account in the fund. Discuss the THREE (3) accounts of Consolidated Fund.