Problem

1. The accounts “estimated revenues” and “appropriations” appear in the trial balance of t...

1. The accounts “estimated revenues” and “appropriations” appear in the trial balance of the general fund. These accounts indicate:

a The use of cash-basis accounting

b The use of accrual-basis accounting

c The formal use of budgetary accounts

d The informal use of budgetary accounts


2. When a complete system of encumbrance accounting is used, the authorizations remaining available for expenditures at any interim date will be equal to:

a Appropriations less encumbrances

b Appropriations less expenditures

c Appropriations plus encumbrances less expenditures

d Appropriations less expenditures and encumbrances


3. Encumbrance accounting is designed to:

a Prevent overspending of amounts appropriated

b Replace expenditure accounting for governmental organizations

c Prevent excessive appropriations

d Prevent or reduce waste in governmental spending


4. Reserve for encumbrance accounts in general fund balance sheets at year-end indicate:

a The amount of net position required to complete the transaction(s) in the succeeding period

b Noncompliance with GAAP

c Cash on hand

d Valuation reserves


5. The reserve for encumbrances—past year account typically represents amounts recorded by a governmental unit for:

a Anticipated expenditures in the next year

b Expenditures for which purchase orders were made in the prior year but for which expenditure and disbursement will be in the current year

c Excess expenditures in the prior year that will be offset against the current-year budgeted amounts

d Unanticipated expenditures of the prior year that become evident in the current year

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 20