31. The accounting and financial reporting for the General Fund is least similar to that of a
a. capital projects fund
b. debt service fund
c. pension trust fund
d. special revenue fund
32. A favorable expenditures variance signifies that, during the year,
a. Unassigned fund balance increased
b. actual spending was less than budgeted spending
c. estimated revenues were less than actual revenues
d. total expenditures did not exceed total encumbrances
33. In governmental accounting, vouchers payable is most similar to which of the following accounts used by business enterprises?
a. contributed capital
b. accounts payable
c. dividends payable
d. unearned revenues
34. Which of the following is not required to be prepared for the General Fund according to GASB standards?
a. budgetary comparison statement or schedule
b. statement of revenues, expenditures, and changes in fund balance
c. balance sheet
d. all of the above are required
35. Which of the following basis of accounting should be used when preparing a budgetary comparison schedule for a government’s General Fund?
a. budgetary basis of accounting
b. accrual basis of accounting
c. modified accrual basis of accounting
d. GASB recommends the accrual basis of accounting be used, but does not require it.
36. The total amount of taxes receivable from all taxpayers within a government's jurisdiction will be posted to which type of account?
a. a control account
b. a contra account
c. a net assets account
d. a subsidiary account
37. At the beginning of the year, a town adopted a budget based on estimated revenues of $1,800,000 and appropriations of $1,780,000. Because of an emergency late in the year, the town found it necessary to increase the sanitation department appropriation by $8,000. What entry should the town make to record the emergency appropriation?
a. debit estimated revenues; credit appropriations for $8,000
b. debit appropriations; credit budgetary fund balance for $8,000
c. debit budgetary fund balance; credit appropriations for $8,000
d. debit appropriations; credit estimated revenues for $8,000
38. On January 1, 2009, a city adopted a budget wherein estimated revenues were $30,000 greater than the appropriations. Because of a slowdown in the economy, it became apparent in June that there would be a shortfall of $25,000 in sales tax collections. The city amended its budget to take account of the reduction in estimated sales tax collections. What entry should the city make?
a. debit sales tax revenues and credit estimated revenues - sales tax for $25,000
b. debit appropriations and credit estimated revenues - sales tax for $25,000
c. debit estimated revenues - sales tax and credit sales tax revenues for $25,000
d. debit budgetary fund balance and credit estimated revenues - sales tax for $25,000
39. A city that uses encumbrance accounting places a purchase order for three fire trucks at a cost of $100,000 each, specifying that two are to be delivered in March and one in August. The vendor delivers the first two trucks, and sends an invoice for $200,000. How should the city handle the encumbrance accounting when it prepares the $200,000 voucher to pay for the first two trucks?
a. it should make no encumbrance entry until all three trucks have been received
b. it should reduce encumbrances by $100,000
c. it should reduce encumbrances by $200,000
d. it should reduce encumbrances by $300,000