Question

1. The total of all departmental operating budgets along with estimated capital outlays by department and estimates of expenditures that will affect all departments (such as pension benefits and claims and judgments) are added together to provide the basis for the budget that is submitted to the legislature.

Select one:

True

False

2. Most governments also prepare a cash forecast to help them determine when they will need to borrow money or when they may be able to invest in securities until the cash is needed.

Select one:

True

False

3. The legal level of control is the point at which another government or a state legislature must step in and take control over another government's spending.

Select one:

True

False

4. In classifying expenditures, which of the following is an illustration of an “object”?

Select one:

A. Materials and supplies

B. Public Safety

C. Arson investigation

D. Fire Department

5. What journal entry is made when a purchase order is placed with a supplier?

Select one:

A. Debit expenditures and credit budgetary fund balance reserved for encumbrances

B. Debit appropriations consumed and credit budgetary fund balance reserved for encumbrances

C. Debit encumbrances and credit appropriations

D. Debit encumbrances and credit budgetary fund balance reserved for encumbrances

6. The GASB sets accounting and reporting standards for state and local governmental budgets.Select one:

True

False

Answer 1

1. true

2. true

3.false

4. A. Materials and supplies

5. D. Debit encumbrances and credit budgetary fund balance reserved for encumbrances

6.true