1. (TCO A) Which of the following distinguishes governmental entities from nongovernmental not-for-profit organizations?        The power to enact and enforce a tax levy.        Absence of profit motive.        Resource providers do not expect benefits proportional to the resources provided.        Absence of a defined ownership interest that can be sold, transferred, or redeemed. 2. (TCO B)Expenditures are generally recorded and fund liabilities are recognized under which of the following?        When goods and services are received, but only if resources are available in the fund.        When purchases orders are issued, regardless of whether or not resources are available in the fund.        When goods and services are received, regardless of whether or not resources are available in the fund.        When the invoices are paid. 3. (TCO C) The general ledger journal entry in the General Fund to record actual expenditures and record the reversal of the associated encumbrance would include which of the following journal entry?        A debit to the Encumbrance Account.        A credit to the Encumbrance Account.        A credit to Budgetary Fund Balance—Reserve for Encumbrance Account.        A debit to the Accounts Payable account. 4. (TCO D) Which of the following is a true statement regarding the use of a Special Revenue Fund? (Points : 5)        Special Revenue Funds may be used when a government wishes to segregate income for specific purposes.        Special Revenue Funds may only be used when a substantial portion of the resources are provided by restricted or committed revenue sources.        Assigned resources can be accounted for in a Special Revenue Fund.        Once a Special Revenue Fund is established by the governmental entity, it will continue to be a Special Revenue Fund until all of the resources are exhausted. 5. (TCO B) Which of the following is not a true statement regarding the government-wide financial statements? (Points : 5)        The government-wide financial statements are not required to present prior-year data.        The government-wide financial statements include a Statement of Net Assets, Statement of Activities, and Statement of Cash Flows.        The government-wide financial statements include capital assets, include infrastructure, and reflect depreciation, except for the infrastructure using the modified approach.        All of the above are true. 6. (TCO D) A donor pledged $300,000 to thefund raising drive of a local government to assist its police officers in obtaining the latest technology. The pledge was made on July 17, 2011 but was conditioned on the government raising an additional $300,000 from other donors. By the fiscal year-end of June 30, 2012, the local government had raised only $6,000 from other donors. What entry would be made for the initial pledge by the local government during the year ended June 30, 2012? (Points : 5)        Debit a receivable account and credit deferr ...

1. 1. (TCO A) Which of the following distinguishes governmental
entities from nongovernmental not-for-profit organizations?
The power to enact and enforce a tax levy.
Absence of profit motive.
Resource providers do not expect benefits proportional to
the resources provided.
Absence of a defined ownership interest that can be sold,
transferred, or redeemed.
2. (TCO B)Expenditures are generally recorded and fund
liabilities are recognized under which of the following?
When goods and services are received, but only if
resources are available in the fund.
When purchases orders are issued, regardless of whether or
not resources are available in the fund.
When goods and services are received, regardless of
whether or not resources are available in the fund.
When the invoices are paid.
3. (TCO C) The general ledger journal entry in the General
Fund to record actual expenditures and record the reversal of
the associated encumbrance would include which of the
following journal entry?
A debit to the Encumbrance Account.
A credit to the Encumbrance Account.
A credit to Budgetary Fund Balance—Reserve for
Encumbrance Account.
A debit to the Accounts Payable account.

2. 4. (TCO D) Which of the following is a true statement regarding
the use of a Special Revenue Fund? (Points : 5)
Special Revenue Funds may be used when a government
wishes to segregate income for specific purposes.
Special Revenue Funds may only be used when a
substantial portion of the resources are provided by restricted or
committed revenue sources.
Assigned resources can be accounted for in a Special
Revenue Fund.
Once a Special Revenue Fund is established by the
governmental entity, it will continue to be a Special Revenue
Fund until all of the resources are exhausted.
5. (TCO B) Which of the following is not a true statement
regarding the government-wide financial statements? (Points :
5)
The government-wide financial statements are not required
to present prior-year data.
The government-wide financial statements include a
Statement of Net Assets, Statement of Activities, and Statement
of Cash Flows.
The government-wide financial statements include capital
assets, include infrastructure, and reflect depreciation, except
for the infrastructure using the modified approach.
All of the above are true.
6. (TCO D) A donor pledged $300,000 to thefund raising drive
of a local government to assist its police officers in obtaining
the latest technology. The pledge was made on July 17, 2011
but was conditioned on the government raising an additional
$300,000 from other donors. By the fiscal year-end of June 30,
2012, the local government had raised only $6,000 from other
donors. What entry would be made for the initial pledge by the
local government during the year ended June 30, 2012? (Points :

3. 5)
Debit a receivable account and credit deferred revenues, a
liability account.
No entry is required.
Debit a receivable account and credit the Fund Balance
account.
Debit a receivable account and credit a revenue account.
7. (TCOs A and B) Identify at least three items that are found in
the Required Supplementary Information section of the
Comprehensive Annual Financial Report. (Points : 10)
8. (TCO D) The City of Davenport adopted the following budget
for fiscal year 2012:
Anticipated Revenues:
Property
Taxes
$5,340,000
Licenses and
Permits 523,000
Fines and Forfeits
425,000Total
$6,288,000
Approved Expenditures:
General Government
$2,160,000
Public
Safety
2,450,000
Public Works
1,560,000
Total
$6,170,000

4. In addition, the City reported the following actual amounts for
the same fiscal year:
Revenues:
Property
Taxes
$5,375,000
Licenses and
Permits 519,000
Fines and Forfeits
437,000
Total
$6,331,000
Expenditures-Current Year:
General Government
2,175,000
Public
Safety
2,490,000
Public
Works
1,542,000
Total
6,207,
000
Required: Prepare a budgetary comparison schedule for the city
ended June 30, 2012 assuming the fund balance of the General
Fund (Budgetary Basis) was $598,000 on July 1, 2011. No
“original budget” column will be required. Please include a
“variance” column.
Please arrange your budget utilizing the appropriate format.
(Points : 10)

5. 9. (TCO D) The following information was available for the
General Fund for the City of Newman for the Year Ended June
30, 2012.
a. Revenues for the year: Property Taxes of $6,240,000, fines
and penalties of $484,000, sales taxes of $453,000,
intergovernmental revenue of $272,000, and charges for
services of $64,000.
b. Expenditures from current appropriations included: General
Government of $3,320,000, Public Safety of $1,923,000, Public
Works of $821,000, Health and Welfare of $294,000, and
Miscellaneous Appropriations of $42,000.
c. A transfer was made from the General Fund to the Debt
Service Fund of $700,000. A transfer of $510,000 was made to
the General Fund from the Enterprise Fund.
d. A sale of city-owned land was made to a private enterprise
which is considered infrequent but not unusual was under city
management control. The proceeds amounted to $330,000 and
the land had a basis of $200,000 which was reported in the
government-wide Statement of Net Assets the year before.
e. Beginning balances included Fund Balance in the amount of
$290,000 and Reserve for Encumbrances in the amount of
$20,000.
Required: Prepare a statement of Revenues, Expenditures, and
Changes in Fund Balance for the General Fund for the City of
Newman for the Year Ended June 30, 2012. (Points : 10)
0
710930658

6. MultipleChoice
9
0
710930659
MultipleChoice
15
0
710930660
MultipleChoice
21
0
710930661
MultipleChoice
28
0
710930662
MultipleChoice
43

7. 0
710930663
MultipleChoice
63
0
710930664
Essay
3
0
710930665
Essay
5