1.
Question :
Student Answer:
(TCO A) Which of the following items are considered Required
Supplementary Information (RSI)?
Management’s Discussion and Analysis
Budgetary Comparison Schedule
Schedule of Risk Management Activities
All of the above
Chapters 1 and 2
2.
Question :
(TCO B) In addition to the government-wide statements, governmental
entities are required to prepare fund financial statements for which of the
following category of funds?
Student Answer:
Governmental type funds
Proprietary funds
Fiduciary funds
All of the above
Instructor Explanation:
3.
Question :
Chapter 2
(TCO C) The County Commission of Hunter County adopted its General
Fund budget for the year ending June 30, comprising of estimated
revenues of $3,750,000 and appropriations of $3,150,000. Hunter
County utilizes the budgetary accounts required by GASB standards.
The budgeted excess of estimated revenues over appropriations will be
recorded as
Student Answer:
a credit to Surplus Revenues, $600,000.
a debit to Estimated Excess Revenues, $600,000.
a credit to Budgetary Fund Balance, $600,000.
a memorandum entry only.
Instructor Explanation:
4.
Question :
Chapter 3
(TCO D) Which of the following is a true statement regarding the use of
a Special Revenue Fund?
Student Answer:
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.
Instructor Explanation:
5.
Question :
Chapter 4
(TCO B) Which of the following is true regarding the government-wide
Statement of Net Assets?
Student Answer:
The government-wide Statement of Net Assets must be prepared
in a classified format; that is, both assets and liabilities must be
separated between current and long-term liabilities.
A reporting entity (primary government plus component units) total
column is required.
The government-wide Statement of Net Assets reflects capital
assets, net of accumulated depreciation, for both governmental and
business-type activities.
The government-wide Statement of Net Assets includes all
resources entrusted to the government, including governmental,
proprietary, and fiduciary.
Instructor Explanation:
6.
Question :
Chapter 2
(TCO D) GASB standards _____ that each governmental reporting
entity display _____ General Fund in its general-purpose financial
statements.
Student Answer:
require; only one.
recommend; one or more.
require; one or more.
recommend; one or more.
Instructor Explanation:
7.
Chapters 2 and 3
Question :
(TCOs A and B) Please list and describe the three major sections of the
Comprehensive Annual Financial Report and provide a brief description
of what is included in each of the section.
Student Answer:
The three major sections of the Comprehensive Annual Financial Report (CAFR) are
the Introductory section, the Financial section, and the Statistical section. The
Introductory section contains the State’s organization chart, together with a list of the
principal state officials, as well as the letter of transmittal. On the other hand, the
Financial section contains the following: 1. ) The General Purpose Financial
Statements, which contain the notes to the financial statements, the combined
financial statements, the State Auditor’s Report, and the required supplementary
information; and 2.) The Combining, Individual Fund and Account Group Financial
Statements and Schedules, which contain details on the Component Unit Funds, the
General Long-Term Obligations Account Group, the General Fixed Assets Account
Group, the Trust and Agency Funds, the Internal Service Funds, the Enterprise
Funds, the Capital Projects Funds, and the Special Revenue Funds. Finally, the
Statistical section contains selected demographic, non-financial, and financial
information, much of which need to be presented on a 10-year basis. This information
is required for the assessment of the state’s overall financial trends.
Instructor Explanation:
Points Received:
8.
Question :
The three major sections are introductory, financial, and statistical. The
introductory section includes the letter of the transmittal, organizational
chart, and the list of the principal officials. The financial section will include
the auditor’s report, Management Discussion and Analysis, the basic
financial statements (which includes the footnotes), Reporting
Supplementary Information and the combining statements for some of the
non-major funds (those that are not reported separately in the basic
financial statements), and schedules. The statistical section will include
certain statistical tables that will include financial trends, revenue and debt
capacity, demographical, economical, and operating information will be
mentioned as well. The data is generally presented for the past 10 years.
10 of 10
(TCO D) The City of Minyard adopted the following budget for fiscal year
2012:
Anticipated Revenues:
Property Taxes
Licenses and Permits
Fines and Forfeits
Interest on Penalties on taxes
Total
$4,480,000
604,000
498,000
24,000
$5,606,000
Approved Expenditures:
General Government
Public Safety
Public Works
Miscellaneous Appropriations
Total
$1,790,000
2,560,000
1,120,000
31,000
$5,501,000
In addition, the City reported the following actual amounts for the same
fiscal year:
Revenues:
Property Taxes
$4,499,000
Licenses and Permits
584,000
Fines and Forfeits
491,000
Interest on Penalties on taxes
19,000
Total
$5,593,000
Expenditures-Current Year:
General Government
$1,835,000
Public Safety
2,610,000
Public Works
Miscellaneous Appropriations
Total
1,076,000
28,000
$5,549,000
Required: Enter the template provided into the answer box and prepare a budgetary comparison
schedule for the city ended June 30, 2012 assuming the fund balance of the General Fund (Budgetary
Basis) was $632,000 on July 1, 2011. No “original budget” column will be required. Please include a
“variance” column.
Template:
City of Minyard
Budgetary Comparison Schedule
General Fund
........................................................Final Budget..................... Actual
.........................Variance
Revenues:
Property Taxes
Licenses and Permits
Fines and Forfeits
Interest on Penalties on Taxes
Total Revenue
Expenditures &
Encumbrances Current Year
General Government
Public Safety
Public Works
Miscellaneous Appropriations
Total Expenditures & EncumbrancesCurrent Year
Excess of Revenues Over Expenditures
Encumbrances-Current Year
Net Change in Fund Balance
Fund Balance, July 1, 2011
Fund Balance, June 30, 2012
Student
Answer:
........................................... Final Budget................Actual .......... Variance Revenues: 4,480,000
4,499,000 19,000 Property Taxes 604,000 584,000 (20,000) Licenses and Permits 498,000
491,000 7,000 Fines and Forfeits 24,000 19,000 (5,000) Interest on Penalties on Taxes Total
Revenue 5,606,0000 5,593,000 (13,000) Expenditures & Encumbrances Current Year General
Government 1,790,000 1,834,000 44,000 Public Safety 2,560,000 2,610,000 50,000 Public Works
1,120,000 1,076,000 44,000 Miscellaneous Appropriations 31,000 28,000 3,000 Total Expenditures
& Encumbrances- Current Year 5,501,000 5,549,000 48,000 Excess of Revenues Over
Expenditures 44,000 Encumbrances-Current Year Net Change in Fund Balance Fund Balance,
July 1, 2011 632,000 Fund Balance, June 30, 2012 588,000
Instructor
Explanation:
City of Minyard
Budgetary Comparison Schedule
General Fund
Final
Budget
Revenues:
Property
Taxes
Licenses and
Permits
Fines and
Forfeits
Interest on Penalties on
Taxes
Actual
Variance
$4,480,000
$4,499,000
604,000
584,000
498,000
24,000
Expenditures &
Encumbrances Current Year
General
Government
Public
Safety
0)
Public
Works
00
Miscellaneous
Appropriations
(7,000)
(5,000)
$5,606,000
$5,593,000
$1,790,000
31,000
(20,000)
491,000
19,000
Total
Revenue
00)
$19,000
$1,835,000
$(13,0
$(45,000)
2,560,000
2,610,000
(50,00
1,120,000
1,076,000
44,0
28,000
Total Expenditures & EncumbrancesCurrent
Year
$5,501,000
)
Excess of Revenues Over
Expenditures
$105,000
44,000
Encumbrances-Current
Year
0
0
Net Change in Fund
Balance
$105,000
44,000
Fund Balance, July 1,
2011
632,000
632,000
Fund Balance, June 30,
3,000
5,549,000
(48,000
(61,000)
0
(61,000)
0
2012
9.
Question :
$737,000
676,000
(61,000)
(TCO D) The City of Martinville had the following pre-closing account
balances in its General Fund as of June 30, 2012. Debits and credits are
not separated; each account had its “normal” balance. Among the
expenditures that are recorded this year is an amount that has been
expended on supplies ordered at the end of the previous year. Assume
that the encumbrances do not lapse and that the city failed to make the
proper journal entry or entries necessary to re-establish the encumbrance
in the current year.
Pre-closing Trial Balance of the City of Martinville as of June 30, 2012:
Cash
Estimated Revenues
Revenues
Appropriations
Estimated Other Financing Sources
Estimated Other Financing Uses
Expenditures
Taxes Receivable-Delinquent
Fund Balance – July 1, 2011
Vouchers Payable
Encumbrances
Transfer Out to Debt Service Fund
Transfer In from Enterprise Fund
Fund Balance-Reserve for Encumbrances
$80,000
6,300,000
6,380,000
5,890,000
79,000
320,000
5,920,000
45,000
380,000
140,000
280,000
150,000
100,000
300,000
Required: Enter the template provided into the answer box and:
(A) Prepare the necessary entries to close the General Fund of the City
of Martinville.
(B) Prepare a Statement of Revenues, Expenditures, and Changes in
Fund Balance for the City of Martinville for the year ended June 30,
2012. Please make sure you end with the Fund Balance for the year
ending June 30, 2012.
Template:
........................................................................................Debit...................
............... Credit
a. Appropriations
Estimated Other Financing Uses
Budgetary Fund Balance
Estimated Revenues
Estimated Other Financing Sources
b. Revenues
Other Financing Sources-Transfers In
Expenditures
Other Financing Uses-Transfers Out
Fund Balance
Fund Balance
Encumbrances
City of Martinville-General Fund
Statement of Revenues, Expenditures and Changes In Fund Balance
Year Ended June 30, 2012
Revenues
Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Uses):
Transfer-In from Enterprise Fund
Transfer-out to Debt Service Fund
Net transfers
Excess of Revenues and Other Financing Sources
Over Expenditures and Other Financing Uses
Fund Balance-July 1, 2011
Fund Balance-June 30, 2012
Student Answer:
Instructor Explanation:
Template:
........................................................................................Debit..................................
Credit a. Appropriations 5,890,000 Estimated Other Financing Uses 320,000
Budgetary Fund Balance 300,000 Estimated Revenues 6,300,000 Estimated Other
Financing Sources 79,000 b. Revenues Other Financing Sources-Transfers In
Expenditures Other Financing Uses-Transfers Out Fund Balance Fund Balance
Encumbrances City of Martinville-General Fund Statement of Revenues,
Expenditures and Changes In Fund Balance Year Ended June 30, 2012 Revenues
Expenditures Excess of Revenues Over Expenditures Other Financing Sources
(Uses): Transfer-In from Enterprise Fund Transfer-out to Debt Service Fund Net
transfers Excess of Revenues and Other Financing Sources Over Expenditures and
Other Financing Uses Fund Balance-July 1, 2011 Fund Balance-June 30, 2012
(Points : 10)
Debit
Credit
a. Appropriations
Estimated Other Financing Uses
Budgetary Fund Balance
Estimated Revenues
Estimated Other Financing Sources
b. Revenues
Other Financing Sources-Transfers In
Expenditures
Other Financing Uses-Transfers Out
Fund Balance
Fund Balance
Encumbrances
5,890,000
320,000
169,000
6,300,000
79,000
6,380,000
100,000
5,920,000
150,000
410,000
280,000
280,000
City of Martinville-General Fund
Statement of Revenues, Expenditures and Changes In Fund Balance
Year Ended June 30, 2012
Revenues
Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources (Uses)
Transfer-In from Enterprise Fund
$100,000
Transfer-out to Debt Service Fund
(150,000)
Excess of Revenues and Other Financing Sources
Over Expenditures and Other Financing Uses
Fund Balance-July 1, 2011
Fund Balance-June 30, 2012
$6,380,000
5,920,000
460,000
( 50,000)
410,000
380,000
790,000