109.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.
110.All of the following are budgetary accounts except:
A) Estimated Revenues
B) Appropriations
C)Expenditures
D) All of the above
111.Estimated Revenues are $4,600,000, and Appropriations are $4,000,000, the journal entry for the budget includes a:
A) Debit to Budgetary Fund balance for 600,000
B) Debit to Encumbrances for 600,000
C) Credit to Budgetary Fund balance for 600,000
D) Credit to Budgetary Fund Balance -- Reserve for Encumbrances for 600,000
112.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
113.How would purchase orders and contracts be reported under modified accrual accounting and accrual accounting?
Modified AccrualAccrual
A) ExpenditureLiability
B) ExpenditureNo entry
C) EncumbranceNo entry
D) EncumbranceLiability
114.Revenues in governmental fund accounting…
A) include taxes, fees, resources provided by other governments, and interfund transfers
B)are recognized when earned
C)are recognized in the fiscal year they are available for expenditure
D) none of the above describes revenues in governmental accounting
115.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
116.Under modified accrual accounting, budgetary authority expires at year end and the balances of Revenues and Expenditures are closed to
A) Net Position
B)Fund Balance
C) Other Financing Uses
D)Other Financing Sources
117.Revenues are raised to finance governmental activities, but revenues may be expended only for purposes and in amounts approved by the legislative branch in compliance with laws of competent jurisdictions. This process is known as the
A)Appropriations Process
B) Encumbered Process
C) Expended Process
D)Budgetary Fund
118.When liabilities authorized by an appropriation have been incurred, the appropriation is said to be…
A) Expensed
B) Encumbered
C)Expired
D)Expended