Gov&NFP - Chapter 3
Government & Nonprofit Budgeting Quiz
Test your knowledge on government and nonprofit budgeting with our comprehensive quiz. Dive into topics such as appropriation budgets, budget-to-actual comparisons, and expenditure classifications.
Prepare to challenge yourself with questions that cover:
- Budgeting fundamentals
- Accounting practices in government
- Understanding financial statements
Appropriation budgets are typically concerned with
The detailsof appropriated expenditures
Long-term revenues and expenditures
Current operating revenues and expenditures
Capital outlays
Which of the following types of budgets would be the most likely to include a line item "purchase of supplies"?
Object classification
Performance
Capital
Program
Peer GASB Statement No. 34, a budget-to-actual comparison must inlude columns for the actual results
The orginal budget only
The final budget only
Both the original and the final budget
Both the amneded and the final budget
Apportionments are made dunring which phase of the budget cycle?
Preparation
Legislative asoption and executive appproval
Execution
Reporting and auditing
In adopting and recording the budget a government should
Debit estimated revenues and credit revenues
Credit estimated revenues and debit fund balance
Debit revenues and credit fund balance
Debit estimated revenues and credit fund balance
In closing budgetary and exenditure accounts at year-end a government should
Debit appropriations and credit expenditures
Credit appropriations and debit expenditures
Debit expenditures and credit fund balance
Credit appropriations and debit fund balance
The prime function of budgetary entries is to
Apportion appropriated expenditures to specific accounts
Help the government monitor revenues and expenditures
Amend the budget during the year
Facilitate the year-end budget-to-actual comparisons
A government should debit an expenditure account upon
Reocrding a budget
Approving an apportionment
Ordering supplies
Recording the receipt of an invoice from its telephone service provider
A government records the budget, and actual revenues exceed budgeted revenues, what would be the impact on the year-end financial statements?
The difference between the actual and budgeted revenues would be reported on niether the balance shoot nor the statement of revenues and expenditures
The difference between the actual and budgeted revenues would be recorded as a budgetary reseve on the balance sheet
The difference between the actual and budgeted revenues woul dbe sshown as a revenue contra account on the statement of revenues and expenditures
The actual revnues would be shown on the statement of revenues and expenditures as a deduction from estimated revenues
A "cash basis" budget relative to a "modified accrual basis" budget
Better facilitates the preparation of year-end financial statements in accordance with generally accepted accounting principles
Better facilitates the day-to-day management of an organization's cash flows
Limits the opportunities of an entity to balance its budget by arbitrarily delaying cash payments from one period to the next
Better ensures that a government will achieve interperiod equity
Upon ordering supplies a government should
Debit encumbrance and credit reserve for encumbrance
Debit reserve for encumbrances and credit encumbrances
Deebit expenditures and credit encumbrances
Debit expenditures and credit vouchers payable
Upon receiving supplies that had previously been encumbered a govenrment should
Debit reserve for encumbrance and credit encumbrances
Debit fund ablance and credit reserve for encumbrances
Debut fund balance and credit expenditures
Debit reserve for encumbrances and credit exenditures
Upon closing the books at year-end a government should
Debit fund balance and credit reserve for encumbrances
Debit encumbrances and credit reserve for encumbrances
Debit fund balance and credit encumbrances
Debit reserve ffor encumbrances and credit encubrances
14. A government requires that all appropriations lapse at the end of a year. At the end of Year 1 that government has $100,000 of goods and services on order. At the start of Year 2 the government should
Debit fund balance and credit encumbrances
Debit reserve for encumbrances and credit encumbrances
Debit encumbrances and credit reserve for encumbrances
Debit encumbrances and credit fund balance
Which of the following accounta would a government be most likley to debit as part of its year-end closing process?
Appropriations, encumbrances, and estimated revenues
Estimated revenues, appropriations, and reserve for encumbrances
Revenues, appropriations, and encumbrances
Revenues, appropriations and fund balance
16. A government places an order for a particular item of equipment and encumbers $5,500. The item arrives accompanied by an invoice for $5,200. The entries that the government should make should include (but are not necessarily be limited to):
A debit to expenditures for $5,200, a debit to fund balance for $300, and a credit to reserve for encumbrances for $5,500
A debit to expenditures for $5,200, a credit to encumbrances for $5,200, and a credit to accounts payable for $5,200
A debit to expenditures for $5,200, a credit to encummbrancces for $5,500 and a credit to accounts papyable for $5,200
A debit to expenditurres for $5,200, a credit to reserve for encumbrances for $5,200, and a credit to accounts pyayble for $5,200
A primary virtue of an object classification budget is that it
Covers a pperiod of more than one year
Faciitates control by establishing detailed spending mandates
Shows the impact on the budget off various possible levels of output
Relates inputs to measurable outcomes
Per GASB Statement No. 34, governments must
Perpare a general fund budget on a cash basis
Prepare a general fund budget on a modified accrual basis
Prepare a schedule that reconcciles any differences between amounts reported on a GAAP basis and a budgetary basis
Prepare a schedule that reconciles any differences between the original budget and the amended budget
19. The amount that a government has available to spend for a particular purpose in a particular year would be indicated by
Encumbrance minus the sum of the appropriations, expendituresm and net adjustments
Reserve for encumbrances plus appropriations minus the sun of expenditures and net adjustments
Approppriations polus encumbrances minus the sum of expenditures and net adjustments
Appropriations minus the sum of exendituresm encumbrances and net adjustments
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