79.Which of the following statements is
nottrue with respect to GASB Statement No. 54 regarding restricted fund balances?
A)Restricted funds are those that are subject to constraints imposed by external parties or by law.
B)Restricted fund balance can result from legally enforceable requirements that resources be used only for specific purpose.
C)Restricted funds are the result of a self-imposed constraint by a government upon itself.
D)All of the above are correct
80.Which of the following statements is correct with respect to GASB Statement No. 54 regarding committed funds?
A)Committed funds are those that are designated as committed through ordinance or resolution by the government’s highest level of authority.
B)These constraints are easily changed by administrators.
C)This is constraint is imposed by law and may not be changed without amendment of the law.
D)Committed funds may be redesignated to uncommitted in the event of a budget shortfall.
81.According to GASB Statement No. 54 which of the following statements is
not
true regarding assigned funds?
A)Assigned fund balances represent governmental resources that the government intends to use for a specific purpose such as a debt service fund.
B)Constraints on assigned resources are more easily changed than committed funds.
C)For governmental funds other than the General Fund, this is the category for all positive residual fund balances.
D)This is the only fund balance that can be negative
82.According to GASB Statement No. 54 an unassigned fund balance is
A)The residual category for the General Fund.
B)The only category of Fund balance that may
notbe reported as a negative number.
C)The designation given for rainy day funds.
D)None of the above
83.GASB standards ____________ that each governmental reporting entity display ___________ General Fund in its general-purpose financial statements.
A)recommend, one or more
B)recommend, only one
C)require, only one
D)require, one or more
84.Which of the following expenditure classification schemes may be used by governmental funds
A)Activity
B)Character
C)Function
D) All of the above
85.Assume estimated revenues exceed appropriations. When the budget for the General Fund is recorded, the journal entry will include:
A)a credit to Budgetary Fund Balance.
B)a credit to Estimated Revenues Control.
C)a debit to Appropriations Control.
D)a credit to Budgetary Fund Balance -- Reserve for Encumbrances.
86.All of the following are commonly used major revenue source classes except for
A)Taxes
B)Intergovernmental revenues
C)Fines and Forfeits
D)Transfers from other funds
87.What is the first step a government takes in acquiring goods or services through the General Fund?
A)Appropriation
B)Expenditure
C)Requisition order
D)Encumbrance
88.Assume encumbrances do not expire at year-end. $16,000 was encumbered during the prior year for a computer and the actual cost of the computer in the current year is $14,000. How does this affect unassigned fund balance?
A)Previous Year: increase $16,000; Current Year: decrease $14,000
B)Previous Year: decrease $16,000; Current Year: increase $2,000
C)Previous Year: no effect; Current Year: decrease $14,000
D)Previous Year: decrease $16,000; Current Year: decrease 14,000