GOVERNMENTAL

Question 1

How to calculate for Unassigned Balance?

Answer 1

Estimated Revenues
- Appropriations Control
- Estimated Transfer - Financing Use
= Unassigned Balance

Question 2

Capital & Related Financing Include:

Answer 2

• Acquiring and disposing of capital assets used in providing services or producing goods,
• Borrowing money for acquiring, constructing, or improving capital assets and repaying the amounts borrowed, including interest, and
• Paying for capital assets obtained from vendors on credit.

Question 3

What is Derived Non-Exchange Revenues for Governmental Entities?

Answer 3

Revenues that are derived from self-assessed taxes from exchange transactions are classified as derived non-exchange revenues for governmental entities. Examples of such revenue include income taxes, sales taxes, and fuel taxes.

Question 4

Special assessment debt should be reported in the Governmental Activities Column?

Answer 4

General government fixed assets and long-term debt are not recorded in the governmental funds, but are shown in the governmental activities column of the governmental-wide financial statements.

Question 5

Encumbrances outstanding at year-end be reported as?

Answer 5

Reservations of Fund Balance.

Question 6

What account to closed at Year End?

Answer 6

All temporary accounts and not balance sheet accounts.

Expenditures, is a temporary account.
Balance sheet accounts include Cash Investments, Payables, Fund Balances and Fund Balances Reserved for Encumbrances.

Question 7

What is Asset Forfeiture Act?

Answer 7

Asset Forfeiture Act should be accounted for by a Special Revenue Fund because the Act does not require that the fund principal remain intact, and the principal may be spent. The property taxes collected for other governments should be accounted for in an Custodial Fund.

Question 8

What is the objective of SEA reporting?

Answer 8

GASB Concepts Statements indicate that the objective of SEA reporting is to provide more complete information about a governmental entity’s performance than can be provided in traditional financial statements and schedules.

Question 9

A local government should report expenses, excluding special or extraordinary items, by which of the following in its government-wide statement of activities?

Answer 9

FUNCTION. The government-wide statement of activities reports expenses by function categorized as either a governmental activity or a business-type activity.

Question 10

Which of the following would be included in the Budgetary Comparison Schedule in the Annual Comprehensive Financial Report (ACFR) of a governmental unit?

Answer 10

Budgetary Comparison Schedule should include general and major special revenue fund types for which annual budgets have been legally adopted. The Enterprise Fund and the Pension Trust Fund are generally not required to report budgetary compliance.