Gov&NFP - Chapter 3 | Take the Quiz

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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

20 Questions5 MinutesCreated by BudgetMaster312

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

20. For which of the following funds would a government be least likely to record its annual budget and thereby integrate it into accounting system?

General fund

Special revenue fund

Capital project fund

Enterprise fund

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Gov&NFP - Chapter 3

Government & Nonprofit Budgeting Quiz

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