Test Bank For Accounting for Governmental & Nonprofit Entities 17th edition by reck
Chapter 03 Governmental Operating Statement Accounts; Budgetary Accounting
True / False Questions
1. |
Fund-based financial statements are intended to provide detailed financial information about the governmental, proprietary, and fiduciary activities of the primary government.   True    False |
2. |
Government-wide financial statements include financial information for all governmental, proprietary, and fiduciary funds.   True    False |
3. |
The government-wide statement of net position displays the net expense or revenue for each function or program of the government.   True    False |
4. |
Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards.   True    False |
5. |
Three categories of program revenues are reported in the statement of activities: charges for services, operating grants and contributions, and capital grants and contributions.   True    False |
6. |
All purchases of goods and services and all interfund transfers of the General Fund are recorded as Expenditures.   True    False |
7. |
On the government-wide statement of activities, depreciation expense for assets that essentially benefit all functions, such as the city hall, may be reported as a separate line item or on the same line as the General Government or similar function.   True    False |
8. |
Expenses represent the costs to purchase goods or services, whereas expenditures represent the costs of a goods or services consumed or expired during the period.   True    False |
9. |
Other financing sources increase fund balance in the same manner as revenues.   True    False |
10. |
Budgetary accounts used in the General Fund include Estimated Revenues, Estimated Other Financing Sources, Appropriations, Estimated Other Financing Uses, and Encumbrances.   True    False |
11. |
All encumbrances must be closed at year-end.   True    False |
12. |
An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.   True    False |
13. |
GASB standards require that all state and local governments present a statement of revenues, expenditures, and changes in fund balances-budget and actual for the General Fund and major special revenue funds for which annual budgets have been legally adopted.   True    False |
14. |
Available means that a revenue or other financing source is expected to be collected during the current fiscal period or within one month of the fiscal year end.   True    False |
15. |
The legal level of budgetary control represents the administrative level at which expenditures may not exceed appropriations without a formal budgetary amendment.   True    False |
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