True/False Questions
1.The term, Fund Balance, is used to indicate the residual net position of a proprietary fund.
2.Net resources of a governmental fund represented by currently due taxes receivable is an example of a nonspendable fund balance
3.Net resources of a governmental fund represented by prepaid insurance is an example of a nonspendable fund balance
4.$200,000 to be used to fund government operations in the futurefrom the General Fund is an example of an unassigned fund balance.
5.Outstanding encumbrance of $80,000 for the purchase of furniture & fixtures is an example of a restricted fund balance.
6.Rainy day funds are classified as restricted if they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended.
7.If “rainy day” funds are available “in emergencies” or periods of “revenue shortfalls” they are not ordinarily classified as committed.
8.Rainy day funds that are available “in emergencies” or “revenue shortfalls” may still be classified as committed if the emergency or shortfall condition is specified and is of such a magnitude as to distinguish it from events that are routine.
9.An exchange transaction is one where each party is given and receives essentially equal value.
10.A nonexchange transaction is one where a government receives resources without giving equal value in return.
1