Question 7 Cash-basis budgets help governments focus on interperiod equity. T F Question 8 During the previous year, Bane County closed its Encumbrance account. At the end of the previous year there were $5,000 in outstanding purchase commitments. To restore these commitments to the accounts, which of the following entries would be required? Debit Reserve for Encumbrances $5,000; Credit Encumbrances $5,000. Debit Encumbrances $5,000; Credit Reserve for Encumbrances $5,000. Debit Encumbrances $5,000; Credit Fund Balance $5,000 Debit Fund Balance $5,000; Credit Reserve for Encumbrances $5,000. Question 9 Property taxes levied on the citizens of the Hill County would most appropriately be budgeted in which of the following budgets? Operating budget. Capital budget. Flexible budget. All of the above.
Question 7
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Question 8
During the previous year, Bane County closed its Encumbrance account. At the end of the previous year there were $5,000 in outstanding purchase commitments. To restore these commitments to the accounts, which of the following entries would be required?
- Debit Reserve for Encumbrances $5,000; Credit Encumbrances $5,000.
- Debit Encumbrances $5,000; Credit Reserve for Encumbrances $5,000.
- Debit Encumbrances $5,000; Credit Fund Balance $5,000
- Debit Fund Balance $5,000; Credit Reserve for Encumbrances $5,000.
Question 9
Property taxes levied on the citizens of the Hill County would most appropriately be budgeted in which of the following budgets?
- Operating budget.
- Capital budget.
- Flexible budget.
- All of the above.
Question 10
A city received supplies that had been previously encumbered. The supplies were encumbered for $5,000 and had an actual cost of $4,900. To recognize this event the county should make which of the following entries?
- Debit Reserve for Encumbrances $5,000 and Supplies $4,900; Credit Encumbrances $5,000 and Vouchers Payable $4,900.
- Debit Encumbrances $5,000 and Supplies $4,900; Credit Reserve for Encumbrances $5,000 and Vouchers Payable $4,900.
- Debit Reserve for Encumbrances $4,900 and Supplies $4,900; Credit Encumbrances $4,900 and Vouchers Payable $4,900.
- Debit Encumbrances $4,900 and Supplies $4,900; Credit Reserve for Encumbrances $4,900 and Vouchers Payable $4,900.
Question 11
Which of the following basis of accounting has been established by GASB for use in the preparation of the general fund budget?
- Cash basis.
- Modified accrual basis.
- Accrual basis.
- None of the above.
Question 12
A county previously encumbered $10,000 for the acquisition of supplies. The supplies were received at a total cost of $9,800. To recognize this event the county should make which of the following entries?
- Debit Reserve for Encumbrances $10,000; Credit Encumbrances $10,000.
- Debit Reserve for Encumbrances $9,800; Credit Encumbrances $9,800.
- Debit Encumbrances $10,000; Credit Reserve for Encumbrances $10,000.
- Debit Encumbrances $9,800; Credit Reserve for Encumbrances $9,800.
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