Accounting: Recording Issuance of Purchase Orders and Contracts
30 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What was the total amount of purchase orders and contracts issued by Johnson City?

  • $800,000
  • $650,000 (correct)
  • $600,000
  • $700,000

In the general journal entry provided, what account is credited?

  • Public safety
  • Encumbrance
  • Reserve for encumbrance (correct)
  • General government

What is the purpose of recording encumbrances?

  • To estimate future expenses
  • To calculate total revenue
  • To track budgeted amounts for goods and services ordered but not yet received (correct)
  • To record actual expenditures

If the goods and services are received in the subsidiary ledger exactly as recorded, what will be the total amount in the subsidiary ledger after receipt?

<p>$650,000 (C)</p> Signup and view all the answers

Which ledger account specifically tracks encumbrances in the given scenario?

<p>Reserve for encumbrance (A)</p> Signup and view all the answers

What is the purpose of creating a subsidiary ledger in this context?

<p>To track detailed transactions related to specific departments or areas (C)</p> Signup and view all the answers

Where do resources of the General Fund and special revenue funds come from?

<p>They are replenished for current operating purposes like salaries and supplies. (B)</p> Signup and view all the answers

How do special revenue funds differ from the General Fund in terms of existence?

<p>Special revenue funds exist as long as there are resources dedicated to specific purposes. (A)</p> Signup and view all the answers

What type of resources are typically transferred to capital projects funds from the General Fund or special revenue funds?

<p>Resources for significant amounts to be expended for large capital projects. (D)</p> Signup and view all the answers

Which accounts belong to the Balance Sheet account classification in governmental unit accounting?

<p>Asset Accounts, Liability Accounts, and Fund Equity Accounts (B)</p> Signup and view all the answers

What is the main purpose of the General Fund account?

<p>To exist throughout the government's life replenishing for current operating purposes. (C)</p> Signup and view all the answers

Which accounts fall under Operating Statement Accounts in governmental unit accounting?

<p>Revenues and Expenditures (D)</p> Signup and view all the answers

What does GASBS 34 recommend in terms of providing budget to actual comparison schedules?

<p>To provide them as required supplementary information (RSI) (D)</p> Signup and view all the answers

How are budgetary accounts integrated into the general ledgers of the General Fund and special revenue funds?

<p>As legally binding requirements for administrators (B)</p> Signup and view all the answers

What is the purpose of a budgetary comparison statement according to GASBS 34?

<p>To compare budgeted amounts with actual amounts (D)</p> Signup and view all the answers

In what format does GASBS 34 allow governments to report budgetary comparison information?

<p>Part of the basic financial statements (D)</p> Signup and view all the answers

What type of funds are required by state laws to adopt a budget according to the text?

<p>Special Revenue Funds only (C)</p> Signup and view all the answers

What schedule should follow immediately after the notes to the financial statements as per GASBS 34 recommendations?

<p>Required Supplementary Information (RSI) schedule (B)</p> Signup and view all the answers

What is the main difference between payroll accounting in a governmental fund and a for-profit entity?

<p>Expenditures are recorded in a governmental fund, while expenses are recorded in a for-profit entity. (B)</p> Signup and view all the answers

Why does the text mention that encumbrances are usually not recorded for recurring expenditures such as payroll?

<p>Because payrolls involve a fixed amount each period and do not require encumbrances. (A)</p> Signup and view all the answers

In the provided illustration, what was the total amount of deductions from the gross pay of employees for the month of January 2008?

<p>$49,518 (B)</p> Signup and view all the answers

What does FICA stand for in the context of payroll accounting mentioned in the text?

<p>Federal Insurance Contribution Act (A)</p> Signup and view all the answers

When recording employer's payroll costs, which account is credited according to the text?

<p>Liability for federal government (A)</p> Signup and view all the answers

What is credited when recording withholdings from employees' pay in payroll accounting as per the text?

<p>Liabilities for withholdings (B)</p> Signup and view all the answers

In accounting for inter-fund transactions, quasi external transactions involve:

<p>Recognizing revenues in the fund financing the provider department and expenditures in the fund financing the receiving department. (B)</p> Signup and view all the answers

If a car repair of $2,000 was done by the internal service fund (ISF) for which the general fund was responsible, what would be the correct journal entry?

<p>GF: Expenditure $2,000, Due to ISF $2,000, ISF: Due from GF $2,000 (D)</p> Signup and view all the answers

What type of transactions are inter-fund loans?

<p>Transactions where loans are made from one fund to another with intent to repay (C)</p> Signup and view all the answers

When a loan must be repaid during the current year or soon thereafter, how should the lending fund record it?

<p>As a current receivable (B)</p> Signup and view all the answers

What should the borrowing fund record when receiving an inter-fund loan?

<p>A current liability (B)</p> Signup and view all the answers

Which type of transactions involve sales and purchases of goods and services between two funds?

<p>Quasi external transactions (B)</p> Signup and view all the answers

More Like This

Use Quizgecko on...
Browser
Browser