Question 1: The General Fund of the City of Richmond approved a tax levy for the calendar year 2009 in the amount of $1,600,000. Of that amount, $30,000 is expected to be uncollectible. During 2009, $1,400,000 was collected. During 2010, $100,000 was collected during the first 30 days, $40,000 was collected during the next 30 days and $30,000 was collected during the next 30 days. During the postaudit, you discovered that the city showed $1,570,000 in revenues. What adjusting entry would you need to make, assuming you decided to allow the maximum amount of revenues for 2009, using modified accrual accounting?
A. Debit Revenues and Credit Deferred Revenues in the amount of $200,000
B. No entry is necessary
C. Debit Revenues and Credit Deferred Revenues in the amount of $70,000
D. Debit Revenues and Credit Deferred Revenues in the amount of $30,000
Question 2: Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:
A. other financing sources
B. appropriation loan
C. inter-fund loans
D. tax anticipation notes
Question 3: A local government was awarded a federal grant in the amount of $600,000 to provide for a summer employment program for young people. The grant was a reimbursement grant and was awarded on April 30, 2009. The local government expended the resources as follows: June, 2009, $220,000; July 2009, $200,000; August, 2009, $180,000. The federal government provided the funds the following months. The local government would recognize revenues for the fiscal year ended June 30, 2009 in which amount?
A. $420,000
B. $600,000
C. $220,000
D. $ - 0 -
Question 4: When supplies ordered by a governmental unit are received at an actual price which is more than the estimated price on the purchase order, the Encumbrance Control account is:
A. debited for the estimated price on the purchase order
B. debited for the actual price for the supplies received
C. credited for the actual price on the purchase order
D. credited for the original estimated price for the supplies received
Question 5: The City of Lonesome Pines levied property taxes for the fiscal year ended June 30, 2009 in the amount of $8,000,000. It is estimated that 2% will not be collected. During the year ended June 30, 2009, $7,200,000 in property taxes were collected. It is estimated that $400,000 will be collected during the next 60 days, $240,000 will be collected after 60 days and $160,000 will not be collected. What is the maximum amount Lonesome Pines can recognize as property tax revenue for the fiscal year ended June 30, 2009 in its Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances, assuming there were no unpaid property taxes at the end of the previous year?
A. $7,840,000
B. $8,000,000
C. $7,600,000
D. $7,200,000
Question 6: Which of the following accounts of a governmental unit is debited when supplies previously ordered are received?
A. Reserve for Encumbrances
B. Reserve for Supplies
C. Appropriations
D. Encumbrances Control
Question 7: When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term note is desirable and secured by a government's power to tax?
A. Tax Anticipation Note Payable
B. Tax Budget Note Payable
C. Tax Encumbrances Note Payable
D. Tax Relief Note Payable
Question 8: What is a Special Revenue Fund?
A. A fund used to account for revenues from general taxes or other revenue sources that by law are designated to finance general activities of the government
B. A fund used to account for all revenue transactions of a governmental unit that are not accounted for in another fund
C. A fund used to account for revenues from specific taxes or other revenue sources that by law are designated to finance particular activities of the government other than capital projects
D. A fund created to account for all resources and revenues to be used for the construction or acquisition of capital assets
Question 9: When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant under GASB Statement 33?
A. Only after work is completely finished for the project
B. When a plan for use of the funds has been developed and approved
C. When work has started for the project
D. Only as work is completed for a project