Mrs Acre's Pie's and Soft Drink Assessment

Non-profit/Municipal Accounting
ACC 410
Strayer University
Take Home Final Exam

Each problem is worth 1 point. Please make sure your first sheet is the answer sheet. This is an individual assignment.

1. _a____
2. _a____
3. _b____
4. c_____
5 .b _____
6. d_____
7.d _____
8. _c____
9. d_____
10. _c____
11. a_____
12. _a____
13. d_____
14. f_____
15. c_____
16. b_____
17. _f____
18. _b____
19. c_____
20. e_____
21. _a____
22. a_____
23. b_____
24.c _____
25.b _____
26. b_____
27. b_____
28d. _____
29. _d____
30. _f____

1. A city's General Fund general ledger includes accounts called Estimated Revenues, Appropriations, and Encumbrances. This indicates that the city

a) formally integrates its budget into its accounts.
b) uses a cash plus encumbrances basis of accounting.
c) maintains its accounts on an accrual basis.
d) erroneously reports encumbrances as expenditures.

2. Legal authority to expend resources is adopted by a city council in the budgeting process. These legal authorizations are called

a) appropriations.
b) authorizations.
c) encumbrances.
d) expenditures.

3. The purpose of encumbrance accounting is to

a) manage a government's cash flows.
b) avoid expenditures exceeding appropriations.
c) replace expense accounting in governments.
d) prevent government waste.

4. The "Unencumbered Balance" in an expenditure subsidiary ledger represents

a) appropriation less expenditures.
b) appropriation less encumbrances.
c) appropriation less expenditures and encumbrances.
d) estimated revenue less appropriation.

5. Which of the following budgetary entries would the town of Geneva make upon adoption of its Special Revenue Fund Budget for the year? Assume the following:

Estimated Revenues $ 6,400,000
Appropriations 6,080,000

dr cr

a) Appropriations $ 6,080,000
Unreserved Fund Balance