6. Which basis of accounting is required for a city’s government-wide financial statements?
A. Cash. B. Modified cash. C. Modified accrual. D. Accrual.
7. A city government would report each of the following categories in its government-wide statement of net position exceptA. Governmental activities. B. Business-type activities. C. Fiduciary activities.D. Component units.
8. Which of the following funds of a local government would report transfers to other funds as an other financing use?A. Enterprise. B. Internal service. C. Pension trust. D. General.
9. The Town of Seabreeze adopted its budget for the year ended December 31, 2015. The town formally integrates its budget into its accounting records. In journalizing its budget, the town would record:a. A debit to budgetary control b. .A debit to encumbrances.c. A debit to appropriations control. d. A credit to appropriations control
10. The Town of Oceanview budgeted $500,000 for the purchase of two fully equipped fire trucks during the fiscal year ended December 31, 2015. The Town issued a purchase order for the acquisition of both trucks for $240,000 each for a total for $480,000. on February 1, 2015 and accepted delivery of one of the trucks, valued at $280,000 on March 31, 2015. As a result of this delivery of one of the ordered vehicles, the Town of Oceanview General Fund would record aa. Debit to property plant and equipment for $280,000. b. Credit to budgetary control for $280,000c. Credit to encumbrances for $240,000. d. Debit to encumbrances for $240,000
11. The City of Ocean Oaks estimates that five percent of its property tax revenues are uncollectible. The city typically levies and collects all taxes within the tax year that the tax revenue is intended to benefit. Forthe fiscal year ended June 30, 2016, Ocean Oaks levied $2,000,000 in taxes and would record the following amounts as revenue and receivable:ReceivableRevenuea.$2,000,000$2,000,000
15. Using the same facts as question 20, if the item is not received by year end which of the following is correct.a. No entry should be madeb. A constraint on fund balance should be recognized by debiting expenditure and crediting budgetary controlc. A constraint on fund balance should be recognized by debiting unassigned fund balance and crediting committed fund balanced. The encumbrance account should be closed by debiting encumbrance and crediting budgetary control.