109. The Fire Department of a certain city received an appropriation in the amount of $13,000,000 for the fiscal year ended December 31, 2014. During the month ended January 31, 2014, the following transactions occurred: (a) purchase orders were issued in the amount of $400,000; (b) purchase orders, related to (a) above, were filled in the amount of $380,000; the related invoice amount was $368,000; invoices were paid in the amount of $350,000; (c) salaries were accrued and paid in the amount of $575,000; (d) the appropriation was increased in amount of $100,000. The amount available for the Fire Department as of January 31, 2014 would be:
A)$11,787,000.
B)$12,077,000.
C)$12,057,000.
D)$12,137,000.
110. In its 2014 Budgetary Comparison Schedule, the amount Park Ridge reports for expenditures (and encumbrances, if applicable) would be:
A)$17,700,000.
B)$17,100,000.
C)$16,200,000.
D)$16,900,000.
111. The amount that Park Ridge would report for expenditures (and encumbrances, if applicable) in its 2014 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances (GAAP Basis) would be:
A)$17,100,000.
B)$16,200,000.
C)$17,700,000.
D)$16,900,000.
112. The General Fund of the City of X passed a budget, providing for $2,000,000 in anticipated revenues and $1,990,000 in anticipated expenditures. The journal entry(s) to record the budget would result in a:
A)credit to Appropriations Control in the amount of $1,990,000.
B)debit to Estimated Revenues Control in the amount of $2,000,000.
C)credit to Budgetary Fund Balance in the amount of $10,000.
D)all of the above.
113.All of the following are budgetary accounts except:
A) Estimated Revenues
B) Appropriations
C) Expenditures
D) All of the above
114.Estimated Revenues are $4,500,000, and Appropriations are $4,000,000, the journal entry for the budget includes a:
A) Debit to Budgetary Fund balance for 500,000
B) Debit to Encumbrances for 500,000
C) Credit to Budgetary Fund balance for 500,000
D) Credit to Budgetary Fund Balance -- Reserve for Encumbrances for 500,000
115.The legal authorization for the administrators of the governmental unit to incur liabilities during the budget period for purposes specified in the appropriations statute or ordinance and not to exceed the amount specified for each purpose is a (an):
A) Appropriation
B) Encumbrance
C) Other financing source/use
D) Expenditure
116.How would purchase orders and contracts be reported under modified accrual accounting and accrual accounting?
Modified AccrualAccrual
A) ExpenditureLiability
B) ExpenditureNo entry
C) EncumbranceLiability
D) EncumbranceNo entry
117.Revenues in governmental fund accounting…
A) include taxes, fees, resources provided by other governments, and interfund transfers
B) are recognized in the fiscal year they are available for expenditure
C) are recognized when earned
D) none of the above describes revenues in governmental accounting
118.The purpose of an encumbrance is to prevent governments from:
A) Overriding Unauthorized Contracts
B) Spending in Excess of the Amounts Authorized
C) Revising the Approved Budget
D) Misappropriating Tax Revenues