State and local governments must prepare their GAAP budgetary comparisons on the modified accrual basis of accounting. T F
Question 31
State and local governments must prepare their GAAP budgetary comparisons on the modified accrual basis of accounting.
T
F
Question 32
Periodic allocations of funds to departments or agencies are generally called
a. Appropriations.
b. Allotments.
c. Allocations.
d. None of the above.
Question 33
Which branch of local (city and county) government most commonly prepares the budget?
a. Executive branch.
b. Legislative branch.
c. Judicial branch.
d. None of the above.
Question 34
GASB requires that governmental entities present their budgeted-to-actual comparison data on which of the following basis of accounting?
a. Budgetary basis.
b. Cash basis.
c. Modified accrual basis.
d. Accrual basis.
Question 35
A governmental entity has formally integrated the budget into its accounting records and uses encumbrance accounting. During the year the government ordered but had not yet received a new police car. What effect will this event have on the unencumbered balance in the account Expenditures Capital Outlay, Police Department ?
a. The balance in the account will not be affected until the police car is received.
b. The balance in the account will be increased.
c. The balance in the account will be decreased.
d. Purchase orders never affect any budgetary account balances.
Question 36
Encumbrances and expenditures both reduce total fund balances of state and local governments.
T
F
Question 37
Which of the following is NOT a function of a budget in the governmental environment?
a. Planning.
b. Organizing.
c. Controlling.
d. Evaluating.
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