21. The City of Kent’s police department needs a new police car. A police car is ordered at an estimated cost of $34,000 and the appropriate budgetary control journal entry is made. When the car is...





21. The City of Kent’s police department needs a new police car. A police car is ordered at an estimated cost of $34,000 and the appropriate budgetary control journal entry is made. When the car is received, the actual cost is $35,000. Which of the following is a part of the budgetary entry that should be made when the police car is received?



a. debit encumbrances for $34,000



b. credit encumbrances for $34,000



c. debit encumbrances for $35,000



d. credit encumbrances for $35,000



22. Which of the following classifications represents the lowest legal level of budgetary control?



a. function/program



b. department



c. object



d. activity



23. Which of the following classifications represents the highest legal level of budgetary control?



a. fund



b. department



c. object



d. activity



24. The legal level of budgetary control is best described as



a. the maximum amount that can be spent without incurring an unfavorable variance



b. the classification or subclassification at which expenditures cannot exceed appropriations



c. the status of the budget officer within the hierarchy of top government officials



d. the sum of favorable budget variances minus the sum of unfavorable budget variances



25. Which of the following is not a "character" classification?



a. activity



b. current operating



c. capital outlay



d. debt service



26. The term "line item" refers to which of the following budget/expenditure classifications?



a. function/program



b. object



c. organizational unit



d. fund



27. Which of the following sequences correctly portrays expenditure account coding from the highest to lowest level of summarization?



a. program, department, activity, object



b. department, object, activity, program



c. activity, department, object, program



d. object, activity, department, program



May 15, 2022
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