53.The journal entry to record an encumbrance would include:
A) A debit to Encumbrance Control
B) A debit to Budgetary Fund Balance – Reserve for Encumbrances
C) A credit to Budgetary Fund Balance – Reserve for Encumbrances
D) A and C would both be included in the journal entry
54.The journal entry to record the property tax levy for a municipality would include:
A) A debit to Bad Debts Expense
B) A credit to Estimated Uncollectible Current Taxes
C) A credit to Taxes Receivable – Current
D) A and B would both be included in the journal entry
55.The journal entry to write off an uncollectible property tax receivable for a municipality would include:
A) A credit to Estimated Uncollectible Current Taxes
B) A debit to Bad Debts Expense
C) A credit to Taxes Receivable – Current
D) B and C would both be included in the journal entry
56.Reciprocal interfund activity:
A) Does not include interfund loans
B) Is the internal counterpart to exchange transactions
C) Includes interfund transfers
D) None of the above
57.Nonreciprocal interfund activity:
A) Includes interfund services provided and used
B) Includes exchange-like transactions
C) Includes interfund loans
D) Includes interfund transfers and reimbursements
58.Which of the following is correct with respect to accounting for supplies inventories in a governmental fund?
A) Supplies inventories may be recorded using either the purchase method or the consumption method.
B) An amount equal to the ending balance of supplies is reported as Nonspendable Fund Balance.
C) The consumption method is preferable over the purchase method since it requires no adjustment to supplies expense when preparing the government-wide statements.
D) All of the above are correct
59.Under the modified accrual basis of accounting, GASB standards for property tax revenue recognition provide that revenue should
not
be recognized for property taxes collected:
A)More than 90 days after fiscal year end.
B)More than 60 days after fiscal year end.
C)More than 30 days after fiscal year end.
D)After fiscal year end.
60.Which of the following is true regarding modified accrual accounting?
A)Modified accrual accounting requires that all expenditures be recognized on the cash basis.
B)Revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred,except for principal and interest on long-term debt.
C)Modified accrual accounting is required for all fund financial statements.
D)All of the above.
61.When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term note is desirable and secured by a government's power to tax?
A)Tax Relief Note Payable.
B)Tax Budget Note Payable.
C)Tax Anticipation Note Payable.
D)Tax Encumbrances Note Payable.
62.Expenditures are generally recorded and fund liabilities are recognized
A) When goods and services are received, but only if resources are available in the fund.
B) When invoices are paid.
C) When purchase orders are issued, regardless of whether or not resources are available in the fund.
D) When goods and services are received, regardless of whether or not resources are available in the fund.