Acc 574 Technology levels--snaptutorial.com

ACC 574 Final Exam
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1) Recognizing revenues when measurable and available for paying
current obligations and expenditures when incurred describes which
basis of accounting?
1. Budgetary
2. Modified cash
3. Modified accrual
4. Accrual
2) Which of the following uses the flow of economic resources
measurement focus?
1. Internal Service Fund
2. Special Revenue Fund
3. Debt Service Fund

4. General Fund
3) The organization that designates which authoritative standard-setting
body is responsible for establishing accounting and financial reporting
standards for particular kinds of organizations—federal, state, and local
government; not-for-profit; and business organizations—isthe
1. Association of Government Accountants
2. Government Finance Officers Association
3. Financial Accounting Foundation
4. American Institute of Certified Public Accountants
4) Which of the following has contributed most to governments’
increased interest in activity-based accounting?
1. The Single Audit Act of 1984, and 1996 Amendments
2. Increased demand for high-profile management tools to bolster
the image of government
3. Implementation of innovative management approaches—such
as TQM and SEA measures—in response to public demand for greater
accountability and productivity
4. GASB standards

5) State reimbursement to schools for a portion of any special education
costs incurred is an example of which category of nonexchange
transactions?
1. Voluntary nonexchange revenue
2. Government mandated nonexchange revenue
3. Imposed tax revenue
4. Derived tax revenue
6) Which of the following is a characteristic that distinguishes
government and not-for-profit (G&NP) organizations from business
enterprises?
1. Accumulating wealth on behalf of its constituents is a key goal
of G&NP organizationsand business enterprises.
2. Net income is an appropriate performance evaluation
measurement for most of these organizations.
3. The resource providers of G&NP organizations often do not
receive services commensurate with the amount of resources they
provide.

4. Borrowing is not a significant source of financing.
7) Which of the following is not specifically identified in the GAAP
hierarchy for state and local governments?
1. GAO’s Yellow Book
2. GASB Implementation Guides
3. GASB Technical Bulletins
4. AICPA Industry Audit and Accounting Guides
8) The purpose of encumbrance accounting is to
1. prevent government waste
2. replace expense accounting in governments
3. avoid expenditures exceeding appropriations
4. manage a government’s cash flows

9) The governmental GAAP hierarchy was established by
1. The Financial Accounting Foundation (FAF)
2. The American Institute of Certified Public Accountants
(AICPA)
3. The Financial Accounting Standards Board (FASB)
4. The Governmental Accounting Standards Board (GASB)
10) Which of the following budgetary approaches starts with line-item
expenditures and applies a factor approximating the inflation rate to
most items, unless specific information is available to suggest that a
different factor should be applied?
1. Incremental budgeting
2. Program budgeting
3. Zero-based budgeting
4. Performance budgeting
11) Which of the following is not one of the purposes of a budget
considered in the Government Finance Officer Association
Distinguished Budget Presentation Award Program?

1. As a policy document
2. As a communication device
3. As a legal document
4. As a financial plan
12) Which of the following statements is not consistent with the GASB’s
Budgeting, Budgetary Control, and Budgetary Reporting Principle?
1. An annual budget must be adopted using generally accepted
accounting principles.
2. The budgetary comparison schedule should present both the
original and the final appropriated budgets for the reporting period.
3. The accounting system should provide the basis for
appropriate budgetary control.
4. Budgetary comparison schedules should be presented as
required supplementary information for the General Fund and each
major special revenue fund for which an annualbudget has been
adopted.
13) The government official typically responsible for providing
department heads with technical support such as clerical assistance with

budget computation and maintenance of document files relating to the
budget is
1. the chief financial officer
2. the director of finance
3. the legislative budget analyst
4. the budget officer
14) Cash disbursements budgets
1. need to be prepared because GASB standards specify the use of
the accrual basis of accounting for governments
2. should be prepared only for each fiscal year because
disbursements for each month are approximately equal
3. should usually be prepared for each month of the year, or for
shorter intervals, in order to facilitate planning short-term borrowings
and investments
4. should be prepared only for funds not required to operate
under legal appropriation budgets
15) Cash receipts and cash disbursement budgets for a government
1. should be prepared for all funds for the entire fiscal year

2. should be prepared for only those funds for which
appropriationsbudgets are not required by law
3. should be prepared as needed to enhance cash management,
investment management, and short-term debt management
4. should be prepared for only those funds for which
appropriationsbudgets are required by law to be prepared on the
accrual basis or the modified accrual basis
16) In accounting for state and local governments, the modified accrual
basis is required for
1. proprietary and fiduciary funds
2. all funds
3. governmental funds only
4. proprietary funds only
17) The accounting system used by a state or local government must
make it possible
1. to fairly present the financial position and results of financial
operations of the government as a whole, as well as fund financial
activity in conformity with GAAP, and to demonstrate compliance with
finance-related legal and contractual provisions

2. to provide web-based bond offering statements to investment
firms
3. to prepare financial statements as required by the Financial
Accounting StandardsBoard
4. to prepare consolidated accrual basis statements for the
government as a whole
18) Which of the following is not a characteristic of a fund as defined by
GASB standards?
1. An accounting entity
2. A self-balancing set of accounts
3. A fiscal entity
4. A segregated quantity of cash and other financial resources on
deposit with a designated trustee
19) Which of the following costs would be allowable under OMB
Circular A-87?
1. Advertising on the Internet by a defense contractor
2. Depreciation expense on the equipment used in a federal
research grant

3. Lobbying for continuation of an educational program by the
school administrator
4. Indirect costs of the state legislature
20) Which of the following should not be reported as a liability of the
General Fund?
1. General obligation bonds payable (due in 10 years)
2. Due to federal government
3. Vouchers payable
4. Tax anticipation notes payable
21) Cash disbursements budgets
1. need to be prepared because GASB standards specify the use of
the accrual basis of accounting for governments
2. should be prepared only for each fiscal year because
disbursements for each month are approximately equal
3. should usually be prepared for each month of the year, or for
shorter intervals, in order to facilitate planning short-term borrowings
and investments
4. should be prepared only for funds not required to operate
under legal appropriation budgets

22) The schedule of legally required events in the budgeting process is
generally referred to as the
1. budget docket
2. budget calendar
3. legal timetable
4. hearing schedule
23) Which basis of accounting best contributes to measuring the cost of
services for rational budgeting purposes?
1. Accrual
2. Cash
3. Modified cash
4. Modified accrual
24) Which of the following might appropriately be termed an outcome
indicator for a police department that reports service efforts and
accomplishments indicators?
1. Number of crimes investigated

2. Number of personnel hours expended
3. Value of property lost due to crime
4. Hours of patrol
34) A budgetary comparison schedule includes the following columns
except
1. actual on the GAAP basis
2. actual on the budgetary basis
3. final revised budget
4. the original budget
35) The city of Newton purchased a vehicle for the police department. If
the operations of the police department are financed by general
revenues, the purchase would be recorded in which funds and/or
activities?
1. General Fund: No; governmental activities: No
2. General Fund: Yes; governmental activities: Yes
3. General Fund: No; governmental activities: Yes
4. General Fund: Yes; governmental activities: No

36) A Special Revenue Fund
1. must be used to account for all expandable restricted resources
2. must be used to account for all nonexpendable restricted
resources
3. is not required except when its use is legally or contractually
mandated
4. is used to account for resources restricted for capital or debt
service purposes
37) Taxes receivable of $80,000, which have a related allowance for
uncollectible taxes of $8,000, become delinquent. The entry to record
this includes a debit to
1. Allowance for Uncollectible Current Taxes
2. Revenues
3. Allowance for Uncollectible Delinquent Taxes
4. Taxes Receivable—Current
38) Sale taxes are an example of which category of nonexchange
transactions?

1. Imposed tax revenue
2. Voluntary nonexchange revenue
3. Government mandated nonexchange revenue
4. Derived tax revenue
39) Which of the following does not affect the "Excess of Revenues over
Expenditures"?
1. incurring and paying salaries
2. transfers from Enterprise Funds
3. property taxes levied and collected in the year
4. purchase of capital assets
40) The operation of a municipality’s recreation facilities and sites such
as ball fields, gymnasiums, and tracks are most likely to be accounted
for in a
1. capital projects fund

2. internal service fund
3. general fund
4. enterprise fund
41) A municipality operates a local landfill. How could the landfill
facility’s operations be reported in the municipality’s financial
statements?
1. only in an enterprise fund
2. either in the general fund or a capital projects fund
3. either in the general fund or an enterprise fund
4. only in a general fund
42) A computer was purchased from unrestricted resources for a
general government department. The government paid cash for the
computer at the purchase date. Which of the following is not an effect of
this transaction in the General Fund?
1. Current liabilities do not change.
2. Fund balance decreases.
3. Current assets decrease.

4. Capital assets increase.
43) If an expenditure was inadvertently charged to the General Fund
instead of the appropriate Special Revenue Fund, what effect would the
correction of this error later in the same fiscal year have on the General
Fund?
1. Expenditures would be decreased.
2. Transfers in would be increased.
3. An entry would be made directly to the General Fund’s fund
balance to correct the error.
4. Revenues would be increased.
44) The county received a $75,000 payment in lieu of taxes from the
water Enterprise Fund. The Enterprise Fund receives no service from
the county for this payment. The General Fund should report the
payment in
1. revenues
2. special item
3. other financing sources – transfer
4. interfund charges

45) If a state law requires local governments to prepare General Fund
and special revenue fund budgets on a basis that differs from the basis of
accounting required by generally accepted accounting principles
(GAAP), then which of the following is true?
1. Both the budgeted and actual amounts in the budgetary
comparison schedule prepared as part of the required supplementary
information should be reported on the GAAP basis; a separate budget-
basis comparison schedule should be prepared for the appropriate state
oversight body.
2. Only a budgetary comparison schedule prepared for the
appropriate state oversight body is required.
3. The actual amounts in the budgetary comparison schedule
should be reported using the government’s budgetary basis.
4. The actual amounts in the budgetary comparison schedule
should be reported on the GAAP basis.
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ACC 574 Week 1 Individual Assignment Revenue
Sources

Select three revenue sources in public budgeting that are mentioned in
the readings.
Summarize each revenue source and describe which fund the source
should fall under or be tracked in.
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ACC 574 Week 2 IndividualAssignment Traffic in
the City of Kelsey
Review the City of Kelsey under the Government tab of the Virtual
Organization site. Access the public records of Kelsey in the City
Government section to familiarize yourself with the city’s budget and
financial report.
You work as a budget director for the mayor of Kelsey, and recently you
have received several complaints from citizens about the need to expand

streets and highways. The population of Kelsey has grown, creating
more traffic and more car accidents.
The mayor has communicated to you that this past year has seen the
highest number of traffic accidents in the city. The federal government
has reduced the federal pass-through money for the state, and the
budgeting group must restructure the budget for the coming year. In
addition to the limited budget, there has been a recent budgetary reform
at the federal level, which has put additionalpressure on the state
Department of Transportation (DOT) to use the federal money before it
expires. The state transportation committees are lobbying the state for
an additional15-cent gas tax for a temporary 3-year period in order to
make up this deficit. However, the state legislature is wary of
introducing any new taxes to the citizens. In addition, the state’s Sierra
Club chapter, an important environmental advocate, is putting pressure
on the legislature to reduce funding for freeways. They are also lobbying
the legislature to enhance mass transit options.
The mayor has indicated that the likelihood of getting any increase in
tax money from the state is remote. The mayor has called a meeting with
your budget staff to address the following issues and to devise a solution
that is politically feasible. In that meeting, the mayor reminds the staff
that if he or she is not reelected, their jobs will be replaced by the new
incumbent.
Create a report, as the budget officer, of no more than 1,400 words that
details the following:
How the changes affect the fiscal cycle of your budgeting
How the preparation, execution, and evaluation of the budgeting cycle
would change
Your budgeting approach based on the changes and the reasons
Differences between the chosen budgeting approach and those not used

A plan to address the traffic issue
Format your paper consistent with APA guidelines.
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ACC 574 Week 3 Individual Assignment Reforms
and Shortcomings for the City of Kelsey
Resource: Virtual Organizations
Evaluate how reform movements and financial shortcomings affect the
City of Kelsey’s operating budget.
Create a Microsoft® PowerPoint®presentation with speaker notes that
provides a brief description of these changes and their effects on
budgeting. Include the following in the presentation:
Identify two major budgetary reform movements, such as zero-based
budgeting versus performance-based budgeting, and their effects on
Kelsey’s budget.

Explain how these two major movements might affect the state and local
levels if given decreased federal funding.
Provide sources to support your presentation.
Format your presentation consistent with APA guidelines.
**********************************************************
ACC 574 Week 4 Individual Assignment
Influences within Public Programs
Select a public program that has recently undergone a significant
budgetary change.
For example, suppose a state cut funding for a domestic violence
program. What possible changes in public policy and the political
process could have led to this decision? What may be the result? Or,
suppose federal and state environmentalists have recommended cuts to
highway funding to reduce environmental impact. How might this
reduction in funding affect the maintenance of state and federal roads,
safety, and so on?

Discuss your topic with your instructor prior to beginning the
assignment. Be sure to obtain instructor approval for the topic.
Write a paper of no more than 1,750 words about how the political
process and changing public policy at the federal, state, and municipal
levels influence budgeting. Detail how the change came about and its
effect on the resulting program.
Include the following in your paper:
Identify political, economic, social, and cultural influences that caused
the change in the budget
Identify the interaction among the federal, state, and municipal levels
with regard to your program
Specify the limits of the agency budget office and how they may try to
compensate for those limits
What strategies agencies and politicians might use to justify increasing
or decreasing the budget for the program you selected
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ACC 574 Week 4 Learning Team Assignment
What is Forecast

Review the 2008 financial report you plan to use in the Final Project
due in Week Six.
Consider how your team would forecast spending for the next year.
Create a summary of no more than 700 words about your forecasting
approaches and your rationale. Incorporate these findings into the Final
Project.
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ACC 574 Week 5 Individual Assignment Manage
Accountability
Your state Department of Transportation (DOT) has received $100
million in federal funding to enhance and expand an interstate freeway

over a 5-year period. The state DOT oversight resources to do this were
pulled from another project: improvement of a local county highway.
The highway from which the resources were pulled is the main route
into the major work centers of the city and is used by most commuters
daily. During the same period, the city lost funding for the rapid bus
service, which resulted in more workers having to drive their own cars
during the work week, increasing traffic congestion.
Select one budget procedure you would use to analyze the utilization of
the $100 million and whether that money was put to its best use.
Note. If you prefer to analyze a different program, with instructor
approval you may choose to use a public program of interest in your
state. Select an actual project to review to create an analysis of
management accountability and cost benefit analysis.
Write a paper no more than 1,500 words on management accountability
and cost benefit analysis. Your paper must state whether the money was
spent as appropriated and whether the decision to use the money to
build a freeway was the best use of that fund.
Identify the various funding and revenue sources that the state could use
to increase and allocate money for improvements, such as levy,
collection, gas taxes, or driver’s license renewals.
Describe how each spending source would be forecasted and tracked in
the budget accounting system. Distinguish between increasing revenue
by raising taxes, cutting other services and programs to divert that
funding to transportation issues, or both.
The paper must include expenditures and associated budgeting
procedures, such as lump sum budgeting, object-of-expenditure
budgeting, and performance budgeting.

An abstract or table of contents is not required. You must include at
least three references other than the text and lectures. All references
must be appropriately referenced in the text and on a references page.
and expand an interstate freeway over a 5-year period. The state DOT
oversight resources to do this were pulled from another project:
improvement of a local county highway. The highway from which the
resources were pulled is the main route into the major work centers of
the city and is used by most commuters daily. During the same period,
the city lost funding for the rapid bus service, which resulted in more
workers having to drive their own cars during the work week, increasing
traffic congestion.
Select one budget procedure you would use to analyze the utilization of
the $100 million and whether that money was put to its best use.
Note. If you prefer to analyze a different program, with instructor
approval you may choose to use a public program of interest in your
state. Select an actual project to review to create an analysis of
management accountability and cost benefit analysis.
Write a paper no more than 1,500 words on management accountability
and cost benefit analysis. Your paper must state whether the money was
spent as appropriated and whether the decision to use the money to
build a freeway was the best use of that fund.
Identify the various funding and revenue sources that the state could use
to increase and allocate money for improvements, such as levy,
collection, gas taxes, or driver’s license renewals.
Describe how each spending source would be forecasted and tracked in
the budget accounting system. Distinguish between increasing revenue

by raising taxes, cutting other services and programs to divert that
funding to transportation issues, or both.
The paper must include expenditures and associated budgeting
procedures, such as lump sum budgeting, object-of-expenditure
budgeting, and performance budgeting.
An abstract or table of contents is not required. You must include at
least three references other than the text and lectures. All references
must be appropriately referenced in the text and on a references page.
**********************************************************
Discussion Question
ACC 574 Week 5 Learning Team Assignment Discussion Question
**********************************************************

Final Project and Presentation
Select a city, county, or state for your final project. Use the Internet to
access its 2008 annualbudget and Comprehensive Annual Financial
Report (CAFR).
Complete a comprehensive paper of no more than 3,000 words and at
least a 12-slide PowerPoint® presentation with speaker’s notes. The
final presentation and paper must cover the municipality as a whole,
and must combine concepts from the class as well as the topics provided
below.
Political, economical, social, and cultural influences on the public
budget
Forecast approaches and rationale
Effects of public policy and the political process affecting the city’s or
town’s budget for 2008
Elements involved in the 2008 budget preparation, enactment, and
execution
Include at least three references other than the text and lectures.

Format your paper and presentation consistent with APA guidelines.
**********************************************************

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