GOV-Budgetary Accounting

Question 1

What is the minimum budgetary information required to be reported in the City of Newbury’s budgetary comparison schedules?

Answer 1

The budgetary comparison schedule should present both (a) the original and (b) the final appropriated budgets for the reporting period as well as (c) actual inflows, outflows, and balances, stated on the government’s budgetary basis. A separate column to report the variance between the final budget and actual amounts is encouraged, but not required. (GASB 2400.102)

Question 2

Which of the following accounts should Moon City close at the end of its fiscal year?

A.
Vouchers payable

B.
Expenditures

C.
Fund balance
D.
Fund balance—reserved for encumbrances

Answer 2

Expenditures is a nominal (operating statement) account used in periodically measuring outflows of financial resources, and as such is closed at the end of the fiscal year. Vouchers Payable, Fund Balance, and Fund Balance—Reserved for Encumbrances are all balance sheet (real) accounts. Balance sheet accounts are not closed at fiscal year-end.