119.Under modified accrual accounting, budgetary authority expires at year end and the balances of Revenues and Expenditures are closed to
A) Fund Balance
B) Net Assets
C) Other Financing Uses
D) Other Financing Sources
120.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) Budgetary Fund
B) Encumbered Process
C) Expended Process
D) Appropriations Process
121.When liabilities authorized by an appropriation have been incurred, the appropriation is said to be…
A) Expensed
B) Encumbered
C) Expired
D) Expended
122.Expenditure classifications by function includes all of the following except
A) Debt Service
B) General Government
C) Public Safety
D) Highways & Streets
123.At what point would the General Fund account “Budgetary Fund Balance -- Reserve for Encumbrances” be debited?
A) When an item is ordered by the government.
B) When an authorized liability is incurred (the government receives the order).
C) When cash is paid to the vendor.
D) (A) or (B) depending on authorized appropriations.
124.The difference between an expenditure and an encumbrance is?
A) An expenditure is the actual amount of an authorized liability and
B) An encumbrance is an expended expenditure.
C) Enterprise funds record expenditures, but do not record encumbrances.
D) Expenditures are estimates and encumbrances are not.
125.To record the budget for the General Fund
A) Estimated Revenue Control is Debited
B) Expenditure Control is Debited
C) Appropriations Control is Debited
D) Revenue Control is Debited
126.Which of the following is true regarding the final appropriations budget?
A) Can be changed at any time by the accounting department
B) Can be exceeded by actual appropriations
C) Is legal and binding
D) None of the above
127.Which of the following results in a decrease in fund balance on a governmental fund’s Balance Sheet?
A) Expenditures
B) Transfers Received
C) Encumbrance
D) Both A and B
128.At year-end, the balance of Expenditures, Revenues and Other Financing Sources and Uses accounts are closed to:
A) Budgetary Fund Balance
B) Expenses
C) Expenditure Control
D) Fund Balance
129.When a liability is incurred as authorized by an appropriation, the appropriation is said to be:
A) Encumbered
B) Appropriated
C) Expended
D) Expensed