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Match the Resource Flow with the Type of Expenditure

Question 65

Matching

Match the Resource Flow with the Type of Expenditure
Correctly match each event with the appropriate expenditure classification. Unless specifically stated otherwise, assume all amounts have been incurred. If the event is not an expenditure, state how the event would be reported in the current year General Fund financial statements. Each classification of expenditure may be used once, more than once, or not at all.

Premises:

Responses:

Interest on short-term debt.

Expenditures – Operating

Purchase of a vehicle that will be used in the Library (which is accounted for using a Special Revenue Fund).

Expenditures – Intergovernmental

Signing a capital lease.

Expenditures – Capital Outlay

Claim against the government to be paid in a future year.

Expenditures – Debt Service – Principal

Borrowing money with a short-term note.

Expenditures – Debt Service – Interest

Interest on long-term debt that is due in the next year.

Not a General Fund expenditure

Compensated absences earned and paid during the year.

Event reduces expenditure (also identify which of above expenditures would be reduced)

Salaries and wages.

Amounts withheld from salaries and wages for taxes and Social Security/Medicare.

Ordering supplies and materials (assume the purchases method is used).

Receiving supplies (assume the purchases method is used).

Using supplies (assume the purchases method is used).

Ordering supplies and materials (assume the consumption method is used).

Issuing long-term debt.

Receiving supplies (assume the consumption method is used).

Using supplies (assume the consumption method is used).

Capital lease principal payment.

The General Fund reimbursed the Special Revenue Fund (SRF) for salaries paid originally from SRF resources.

Capital lease interest payment.

Repayment of a short-term note.

The General Fund received a payment from the Library Fund (SRF) for its portion of the government electricity bill.

Year-end accrual of interest on short-term note.

Compensated absences incurred in the current year but to be paid in future years.

Claim against the government to be paid in the current year.

The General Fund received an electric bill for the entire government. The General Fund paid the bill.

The General Fund transferred money to the Capital Projects Fund to provide financing for the construction of a major facility.

Premises:

Interest on short-term debt.

Purchase of a vehicle that will be used in the Library (which is accounted for using a Special Revenue Fund).

Signing a capital lease.

Claim against the government to be paid in a future year.

Borrowing money with a short-term note.

Interest on long-term debt that is due in the next year.

Compensated absences earned and paid during the year.

Salaries and wages.

Amounts withheld from salaries and wages for taxes and Social Security/Medicare.

Ordering supplies and materials (assume the purchases method is used).

Receiving supplies (assume the purchases method is used).

Using supplies (assume the purchases method is used).

Ordering supplies and materials (assume the consumption method is used).

Issuing long-term debt.

Receiving supplies (assume the consumption method is used).

Using supplies (assume the consumption method is used).

Capital lease principal payment.

The General Fund reimbursed the Special Revenue Fund (SRF) for salaries paid originally from SRF resources.

Capital lease interest payment.

Repayment of a short-term note.

The General Fund received a payment from the Library Fund (SRF) for its portion of the government electricity bill.

Year-end accrual of interest on short-term note.

Compensated absences incurred in the current year but to be paid in future years.

Claim against the government to be paid in the current year.

The General Fund received an electric bill for the entire government. The General Fund paid the bill.

The General Fund transferred money to the Capital Projects Fund to provide financing for the construction of a major facility.

Responses:

Expenditures – Operating

Expenditures – Intergovernmental

Expenditures – Capital Outlay

Expenditures – Debt Service – Principal

Expenditures – Debt Service – Interest

Not a General Fund expenditure

Event reduces expenditure (also identify which of above expenditures would be reduced)

Correct Answer:

Premises:

Responses:

Interest on short-term debt.

Purchase of a vehicle that will be used in the Library (which is accounted for using a Special Revenue Fund).

Signing a capital lease.

Claim against the government to be paid in a future year.

Borrowing money with a short-term note.

Interest on long-term debt that is due in the next year.

Compensated absences earned and paid during the year.

Salaries and wages.

Amounts withheld from salaries and wages for taxes and Social Security/Medicare.

Ordering supplies and materials (assume the purchases method is used).

Receiving supplies (assume the purchases method is used).

Using supplies (assume the purchases method is used).

Ordering supplies and materials (assume the consumption method is used).

Issuing long-term debt.

Receiving supplies (assume the consumption method is used).

Using supplies (assume the consumption method is used).

Capital lease principal payment.

The General Fund reimbursed the Special Revenue Fund (SRF) for salaries paid originally from SRF resources.

Capital lease interest payment.

Repayment of a short-term note.

The General Fund received a payment from the Library Fund (SRF) for its portion of the government electricity bill.

Year-end accrual of interest on short-term note.

Compensated absences incurred in the current year but to be paid in future years.

Claim against the government to be paid in the current year.

The General Fund received an electric bill for the entire government. The General Fund paid the bill.

The General Fund transferred money to the Capital Projects Fund to provide financing for the construction of a major facility.