Question 1

For each of the following transactions, select the area of accounting records in which an entry will be recorded.
(A) General Fund only.
(B) Governmental Activities only.
(C) General Fund and Governmental Activities.
(D) General Fund and Debt Service Fund.
(E) Capital Projects Fund and Governmental Activities.
(F) Debt Service Fund and Governmental Activities.
(G) Special Revenue Fund and Governmental Activities.
___ (1.) The city council adopts an annual budget for the General Fund.
___ (2.) Property taxes are levied.
___ (3.) Computers are ordered for the fire department.
___ (4.) A transfer of funds is made from the General Fund to the Debt Service Fund.
___ (5.) The principal and interest of a bond are paid.
___ (6.) A building is acquired for the police department, and renovations begin immediately.
___ (7.) Depreciation on fire trucks is recorded.
___ (8.) Citizens are assessed for a street lighting project that has been legally restricted for those citizens.
___ (9.) A grant is received to landscape tree-lined areas beside city-owned streets.
___ (10.) The city spends grant money received in (9.) above and landscapes the tree-lined areas beside the streets for which the grant money was received.

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Question 2

Under modified accrual accounting, when should revenues be reported by a governmental-type fund?

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Question 3

What is a special revenue fund used to account for?

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Question 4

What assets would be included in the accounting records of a city's general fund?

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Question 5

A city enacted a special tax levy and the money must be used to provide medical services at the municipal hospital. What kind of fund should be used to record the revenues generated by the tax?

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Question 6

On July 1, 2011, Fred City ordered $1,500 of office supplies. They were to be paid for out of the General Fund.
Required:
(A.) What journal entry was required for the Fund Financial Statements?
(B.) What journal entry was required for the Government-Wide Statements?

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Question 7

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

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Question 8

The board of commissioners of the city of Jarmaine adopted a General Fund budget for the year ending June 30, 2011, which indicated revenues of $1,300,000, bond proceeds of $520,000, appropriations of $1,170,000, and operating transfers out of $390,000.
Required:
If this budget was formally integrated into the accounting records used to produce the Fund Financial Statements, what was the required journal entry at the beginning of the year?

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Question 9

Under modified accrual accounting, when are expenditures recorded?

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Question 10

What is the definition of the term fund?

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Question 11

When should property taxes be recognized under modified accrual accounting?

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Question 12

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

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Question 13

What are the five types of governmental funds?

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Question 14

What organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established?

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Question 15

What are the two groups of financial statements mandated by GASB Statement No. 34? For each group, what are the names of the individual statements that must be produced?

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Question 16

What is the purpose of government-wide financial statements?

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Question 17

What are the four fiduciary fund types?

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Question 18

What is the purpose of fund financial statements?

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Question 19

What are the two proprietary fund types?

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Question 20

In governmental accounting, what term is used for a decrease in financial resources?

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Quiz 11: Accounting for State and Local Governments Part 1