Question 1

The City of Westboro passed an appropriations ordinance for the year ended June 30,2012.Included in the appropriations ordinance was an appropriation for public safety in the amount of $8,600,000.During the month ended July 31,2012 the following transactions took place:
a.Purchase orders were issued in the amount of $410,000.
b.Goods were received,related to purchase orders in the amount of 200,000,along with invoices amounting to $205,000.
c.Salaries were paid in the amount of $450,000.
d.Because of an economic slowdown,a budget amendment was passed cutting all departments' (annual)appropriations by 4%.
Required:
Compute the amount of appropriations available at July 31,2012.

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Question 2

The City of Fairport adopted the following budget for fiscal year 2012:
  In addition,the City reported the following actual amounts for the same fiscal year.  Required:
 Prepare a budgetary comparison schedule for the City for the year ended December 31,2012 assuming the fund balance of the General Fund (budgetary basis)was $512,000 at January 1,2012.No "original budget" column is required.Include a "variance" column.

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Question 3

Define and give an example of each of the following categories of Fund Balance outlined in GASB Statement No.54:
Nonspendable
Restricted
Committed
Assigned
Unassigned

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Question 4

The revenue classifications recommended by GASB standards are listed below.
a.Taxes
b.Licenses and Permits
c.Intergovernmental Revenue
d.Charges for Services
e.Fines and Forfeits
f.Miscellaneous
For each revenue source listed below,indicate its correct classification by placing the appropriate letter in the blank space next to the item.
(1)Building permits.
(2)Green fees at the municipal golf course.
(3)Special Purpose Local Option Sales Tax levied by city.
(4)State grant for pre-kindergarten program.
(5)Collection of traffic tickets.

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Question 5

What are the revenue and expenditure recognition criteria under modified accrual accounting?
 Include in your answer specifically the recognition of property tax revenue.

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Question 6

With respect to reporting for the General Fund,what is the difference between GAAP basis and budgetary basis reporting?

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Question 7

Define the term "Expenditure" and distinguish between that term and each of the following terms:
Expense
Disbursement
Encumbrance

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Question 8

List the four eligibility requirements for a government to record revenue from a nonexchange transaction.Provide a brief explanation for each.

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Question 9

What are the four classes of nonexchange revenues?

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Question 10

Distinguish between the Encumbrances Control account and the Budgetary Fund Balance -- Reserve for Encumbrances account.

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Question 11

Briefly discuss how governmental budgeting differs from budgeting for businesses.

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Question 12

What is the difference between an exchange and a nonexchange transaction?

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Question 13

Prepare the General Ledger journal entries for the General Fund for the Village of Bath for the year ended December 31,2012
a.The budget was formally adopted.Estimated Revenues Control $2,500,000 and appropriations are estimated to be $2,465,000.
b.Revenues were received in the amount of $2,505,000.
c.Purchase orders were issued in the amount of $1,300,000.
d.Purchase orders were filled in the amount of $1,105,000.The invoice amount was $1,110,000.
e.Expenditures,not encumbered,amounted to $1,040,000.(not yet paid)
f.Amounts from d and e are paid.

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Question 14

Define the term "Revenue" and distinguish between that term and "Other Financing Sources."

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Quiz 3: Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Define and give an example of each of the following categories of Fund Balance outlined in GASB Statement No.54: Nonspendable Restricted Committed Assigned Unassigned

What are the revenue and expenditure recognition criteria under modified accrual accounting? Include in your answer specifically the recognition of property tax revenue.