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20 Cards in this Set
- Front
- Back
1. Which of the following funds would use the modified accr ual basis of accounting in preparing its fund financial statements? a) City Electric Utility Enterprise Fund. b) City Hall Capital Projects Fund. c) City Motor Pool Internal Service Fund. d) City Employee Pension Trust Fund. |
B |
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Which of the following funds would use the accrual basis of accounting in preparing its fund financial statements? a) City General Fund. b) City Hall Capital Projects Fund. c) City Motor Pool Internal Service Fund. d) None of the above. |
C |
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As used in government accounting, expenditures are decreas es in a) Net assets. b) Net current financial resources. c) Net cash. d) Net economic resources. |
B |
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Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statements. The city pays its em ployees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been pai d on Friday, June 25. The employees paid from the general fund had earned $90,000 on Monda y, Tuesday, and Wednesday (June 28, 29, and 30). What entry, if any, should be made in the city’s general fund on June 30? a) Debit Expenditures $90,000; credit Wages and salaries payable $90,000. b) Debit Expenses $90,000; credit Wages and salaries payable $90,000. c) Debit Expenditures $90,000; credit Encumbrances $90,000. d) No entry is required. |
A |
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Assume that the City of Juneau maintains its books and records to facilitate the preparation of its government-wide financial statements. The city pay s its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the general fund had e arned $90,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). They will earn $60, 000 on Thursday and Friday (July 1 and 2). What entry, if any, should be ma de on June 30? a) Debit Expenditures $90,000; credit Wages and salaries payable $90,000. b) Debit Expenditures $150,000; credit Wages and salaries payable $150,000. c) Debit Expenses $90,000; credit Wages and salaries payable $90,000. d) No entry is required. |
C |
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Employees of the City of Orleans earn ten days pai
d leave for each 12 months of employment. The city has a policy that employees must take their vacation days during the year following the year in which they are earned. If they do not take vacation in the allotted period, they forfeit the vacation pay benefit. Traditionall y, employees have taken 80 percent of the vacation days earned. During the current year, city employees earned $600,000 in vacation pay. Assuming the city maintains its books and records in a manner to facilitate the preparation of fund financial statements, which of the following entries should be made in the general fund to record the vacation pay earned during the current period? a) Debit Expenditures $600,000; credit Vacation pay payable $600,000. b) Debit Expenses $600,000; credit Vacation pay payable $600,000. c) Debit Expenditures $480,000; credit Vacation pay payable $480,000. d) No entry required. |
D
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Employees of the City of Orleans earn ten days pai d leave for each 12 months of employment. The city has a policy that employees must take their vacation days during the year following the year in which they are earned. If they do not take vacation in the allotted period, they forfeit the vacation pay benefit. Traditionall y, employees have taken 80 percent of the vacation days earned. During the current year, city employees earned $600,000 in vacation pay. Assuming the city maintains its books and r ecords in a manner to facilitate the preparation of government-wide financial statements, which of the following entries should be made to record the vacation pay earned during the current period? a) Debit Expenditures $600,000; credit Vacation payable $600,000. b) Debit Expenses $600,000; credit Vacation payable $600,000. c) Debit Expenses $480,000; credit Vacation pay payable $480,000. d) No entry required. |
C |
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Employees of the general fund of Scott City earn ten d ays of vacation for each 12 months of employment. The city permits employees to carry the vac ation days forward as long as they wish. During the current year employees earned $800,000 of vacat ion benefits, of which the city estimates $500,000 will be taken in the next year and the bal ance will be carried forward. Assuming that the city maintains its books and records in a manner that facilitates the preparation of fund financial statements, which of the following entries should be made in the general fund to record the vacation pay earned during the current period? a) Debit Expenditures $800,000; credit Vacation pay payable $800,000. b) Debit Expenditures $500,000; credit Vacation pay payable $500,000. c) Debit Vacation expense $800,000; credit Vacation pay payable $800,000. d) No entry required. |
D |
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employees of the general fund of Scott City earn ten da
ys of vacation for each 12 months of employment. The city permits employees to carry the vac ation days forward as long as they wish. During the current year employees earned $800,000 of vacat ion benefits, of which the city estimates $500,000 will be taken in the next year and the bal ance will be carried forward. Assuming that the city maintains its books and records i n a manner that facilitates the preparation of government-wide financial statements, which of the following entries should be made to record the vacation pay earned during the current period? a) Debit Expenditures $800,000; credit Vacation pay payable $800,000. b) Debit Expenditures $500,000; credit Vacation pay payable $500,000. c) Debit Vacation expense $800,000; credit Vacation pay payable $800, 000. d) No entry required. |
C
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Lincoln City has a 6/30 fiscal year-end. The city has a policy of recognizing fund revenues/ expenditures when collected/paid or if expected to be colle cted/paid within 60 days of year-end. The city has a sick leave benefit policy for its employee s. The policy allows city employees one day of paid sick leave per month and permits them to acc umulate sick leave that they do not take. Sick leave vests at the completion of the fifth year of em ployment, and unused sick leave is paid in cash upon termination or retirement. During the fiscal year ended 6/30/15, city employees who are paid from the general fund earned $2.8 million of sick leave, of which $1.0 was taken. Of the balance, the city estimates that $0.2 million will be ta ken in the next 60 days, $0.6 million will be taken in the next five years, $0.4 million will vest, and $0.6 million will never be taken.
The amount of sick leave expenditures that should appea r on the general fund financial statements for the fiscal year ended 6/30/15 is a) $1.4 million. b) $1.3 million. c) $0.6 million. d) $1.0million. |
D |
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Lincoln City has a 6/30 fiscal year-end. The city has a policy of recognizing fund revenues/ expenditures when collected/paid or if expected to be colle cted/paid within 60 days of year-end. The city has a sick leave benefit policy for its employee s. The policy allows city employees one day of paid sick leave per month and permits them to acc umulate sick leave that they do not take. Sick leave vests at the completion of the fifth year of em ployment, and unused sick leave is paid in cash upon termination or retirement. During the fiscal year ended 6/30/15, city employees who are paid from the general fund earned $2.8 million of sick leave, of which $1.0 was taken. Of the balance, the city estimates that $0.2 million will be ta ken in the next 60 days, $0.6 million will be taken in the next five years, $0.4 million will vest, and $0.6 million will never be taken.
The amount of sick leave liability that should appe ar on the general fund balance sheet at 6/30/15 is a) $1.2 million. b) $0.4 million. c) $0.2 million. d) No liability should appear. |
D |
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Lincoln City has a 6/30 fiscal year-end. The city has a policy of recognizing fund revenues/ expenditures when collected/paid or if expected to be colle cted/paid within 60 days of year-end. The city has a sick leave benefit policy for its employee s. The policy allows city employees one day of paid sick leave per month and permits them to acc umulate sick leave that they do not take. Sick leave vests at the completion of the fifth year of em ployment, and unused sick leave is paid in cash upon termination or retirement. During the fiscal year ended 6/30/15, city employees who are paid from the general fund earned $2.8 million of sick leave, of which $1.0 was taken. Of the balance, the city estimates that $0.2 million will be ta ken in the next 60 days, $0.6 million will be taken in the next five years, $0.4 million will vest, and $0.6 million will never be taken. The amount of sick leave expense that should appea r on the government-wide financial statements for the fiscal year ended 6/30/15 is a) $2.8 million. b) $2.6 million. c) $1.2 million. d) $1.4 million. |
D |
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Lincoln City has a 6/30 fiscal year-end. The city has a policy of recognizing fund revenues/ expenditures when collected/paid or if expected to be colle cted/paid within 60 days of year-end. The city has a sick leave benefit policy for its employee s. The policy allows city employees one day of paid sick leave per month and permits them to acc umulate sick leave that they do not take. Sick leave vests at the completion of the fifth year of em ployment, and unused sick leave is paid in cash upon termination or retirement. During the fiscal year ended 6/30/15, city employees who are paid from the general fund earned $2.8 million of sick leave, of which $1.0 was taken. Of the balance, the city estimates that $0.2 million will be ta ken in the next 60 days, $0.6 million will be taken in the next five years, $0.4 million will vest, and $0.6 million will never be taken.
The amount of sick leave liability that should appe ar on the government-wide financial statements at 6/30/15 is a) $1.2 million. b) $0.4 million. c) $0.2 million. d) No liability should appear. |
B |
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State Community College, a public college, grants facul ty members a one-year sabbatical leave after each seven years of service. There are no r equirements for research, study, or service during the compensated sabbatical leave. A particula r faculty member earns $40,000 per year. Assuming that the college maintains its books and records in a manner that facilitates the preparation of fund financial statements and assuming that any appropriate accruals have been made, what is the appropriate entry t o record the employee’s salary paid while on sabbatical? a) Debit Expenditures $40,000; Credit Cash $40,000. b) Debit Sabbatical leave payable $40,000; Credit Cash $40,000. c) Debit Expenditures $40,000; Credit Sabbatical leave payable $40,000. d) No entry required. |
A |
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State Community College, a public college, grants facul ty members a one-year sabbatical leave after each seven years of service. There are no r equirements for research, study, or service during the compensated sabbatical leave. A particula r faculty member earns $40,000 per year. Assuming that the college maintains its books and records in a manner that facilitates the preparation of government-wide financial sta tements and assuming that any appropriate accruals have been made, what is the appropria te entry to record the employee’s salary paid while on sabbatical? a) Debit Expenditures $40,000; Credit Cash $40,000. b) Debit Sabbatical leave payable $40,000; Credit Cash $40,000. c) Debit Expenditures $40,000; Credit Cash $40,000. d) No entry required. |
B |
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State University, a public university, has a policy of granting faculty members a one-year paid sabbatical leave after a period of seven years continuo us employment. The leave is for further study, research, or public service. A particular f aculty member earns $90,000 per year. Assuming that the college maintains its books and rec ords in a manner that facilitates the preparation of fund financial statements and assuming t hat any appropriate accruals have been made, what is the appropriate entry to record the empl oyee’s salary paid while on sabbatical leave? a) Debit Expenditures $90,000; Credit Cash $90,000. b) Debit Expenses $90,000; Credit Cash $90,000. c) Debit Sabbatical leave payable $90,000; Credit Cash $90,000. d) No entry required. |
A |
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State University, a public university, has a policy of granting faculty members a one-year paid sabbatical leave after a period of seven years continuo us employment. The leave is for further study, research, or public service. A particular f aculty member earns $90,000 per year. Assuming that the college maintains its books and rec ords in a manner that facilitates the preparation of government-wide financial statements and a ssuming that any appropriate accruals have been made, what is the appropriate entry t o record the employee’s salary paid while on sabbatical leave? a) Debit Expenditures $90,000; Credit Cash $90,000. b) Debit Expenses $90,000; Credit Cash $90,000. c) Debit Sabbatical leave payable $90,000; Credit Cash $90,000. d) No entry required. |
B |
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State University, a very large public university, ha s a policy of granting faculty members a one-year sabbatical leave after a period of seven years of c ontinuous employment. The leave is to be used for further study, research, or servic e. During the fiscal year ended 6/30/15, the university paid $3 million to faculty members on sa bbatical leave and estimated that faculty members currently not on sabbatical leave ear ned $3.5 million toward sabbatical leaves they are likely to take in the future. The amount of sabbatical expenditures for the year ended 6/30/15 should be a) $0 million. b) $3 million. c) $3.5 million. d) $6.5 million. |
B |
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Culver City recognizes as revenues/expenditures those amou nts collected/paid during the year or within 60 days of fiscal year-end. The city offe rs a pension benefit to its employees who meet certain age and years of employment criteria. T he city participates in the State Pension Plan. Per its contractual arrangement, the city ’s required contribution to the State Pension Plan for the fiscal year ended 6/30/15 is $5 million. Due to cash inflow shortages the city, which budgeted $5 million for pension contributions, pai d only $4 million in the fiscal year ended 6/30/15. The city paid the remaining amount on September 30, 2015. Assuming the city maintains its books and records in a m anner that facilitates the preparation of its fund financial statements, how should t he city record the pension contribution and any associated liability for the year ended 6/30/15? a) Debit Expenditures $5 million; Credit Cash $4 million and Pensi on payable $1 million. b) Debit Expenses $5 million; Credit Cash $4 million and Pe nsion payable $1 million. c) Debit Expenditures $4 million; Credit Cash $4 million. d) Debit Expenses $4 million; Credit Cash $4 million |
C |
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Culver City recognizes as revenues/expenditures those amou nts collected/paid during the year or within 60 days of fiscal year-end. The city offe rs a pension benefit to its employees who meet certain age and years of employment criteria. T he city participates in the State Pension Plan. Per its contractual arrangement, the city ’s required contribution to the State Pension Plan for the fiscal year ended 6/30/15 is $5 million. Due to cash inflow shortages the city, which budgeted $5 million for pension contributions, pai d only $4 million in the fiscal year ended 6/30/15. The city paid the remaining amount on September 30, 2015. Assuming the city maintains its books and records in a m anner that facilitates the preparation of government-wide financial statements, how shou ld the city record the pension contribution and any associated liability for the year ended 6/10/15? a) Debit Expenditures $5 million; Credit Cash $4 million and Pe nsion contribution payable $1 million. b) Debit Expenses $5 million; Credit Cash $4 million and Pe nsion contribution payable $1 million. c) Debit Expenditures $4 million; Credit Cash $4 million. d) Debit Expenses $4 million; Credit Cash $4 million. |
B |