Participant
The revenues control account of a governmental unit is increased when:
A. the encumbrance account is decreased.
B. appropriations are recorded.
C. property taxes are recorded.
D. the budget is recorded.
The answer is C.
I’m confused. It could be because of my lack of knowledge of govt accounting. I thought it was D. When the budget is recorded, you debt estimated revenue control and credit appropriations; thus increasing revenue control account.
One thing that I HATE about govt acct is the the terms are sometimes not consistently used and they’re not the exact same terms (using both Becker and Ninja I’ve noticed this). On one page it would refer to it as “estimated revenues” and on the next page it would refer to it as “estimated revenues control”. I don’t know about everyone else but that honestly confuses the hell out of me.
The answer gives this explanation “Crediting the revenues control account signifies either that cash has been collected, or that a valid receivable exists. In practice, when property taxes are levied, a receivable is created. The debit to property taxes receivable is offset by a credit to revenues to the extent that the taxes are “susceptible to accrual;” that is, both measurable and available to pay liabilities of the fiscal period. (To the extent that receivable items do not meet the susceptible to accrual criteria, deferred revenues, a liability, is credited.) Budgetary events and accounts (the other answer choices) do not affect the revenue control account.”
From this explanation I’m starting to think
“revenue control”=actual money collected and
“estimated revenue control”=imaginary money through budgeting.
Formerly-DAB
Reg 80
Bec 80
Far 73 75
Aud 69 89
Done! Time to live life again!
Derived (non-exchange) tax revenues represent:
Taxes imposed on or derived from exchange transactions such as commercial sales (sales tax)
Imposed non-exchange revenues include:
Measurable is defined as ______________
Available is defined as ________________
A known amount
Collected during the period OR shortly thereafter (typically 60 days of period end)
Under Modified Accrual Accounting, the issuing of a purchase order (commitment to purchase) is recorded for internal bookkeeping as:
DR: Encumbrance
CR: Budgetary Control
A balanced budget demonstrates:
The revenues control account of a governmental unit is increased when:
Property taxes are recorded.
When property taxes are levied, the following journal entry is made:
DR: Property Taxes Receivable
CR: Allowance for uncollectible property taxes
CR: Revenues
The estimated revenues control account of a governmental unit is debited when:
The budget is recorded.
The entry to record the budget is:
DR: Estimated revenues control
CR: Budgetary control
Journal entry for when purchase order is issued:
DR: Encumbrances
CR: Budgetary Control
Journal entry for when the invoice/supplies are received:
DR: Budgetary Control
CR: Encumbrances
DR: Expenditures
CR:
Vouchers Payable
Total assets less total liabilities
A budgetary control (open purchase orders) account balance in excess of a balance of encumbrances indicates:
The estimated revenues control account balance of a governmental fund type is eliminated when:
The budgetary accounts are closed.
Journal entry to record budget when appropriations exceed the estimated revenues:
DR: Estimated
Revenues
DR: Budgetary Control
CR: Appropriations Control
Journal entry to close the budget at the end of the year would be:
DR: Appropriations Control
CR: Estimated Revenues
CR: Budgetary Control
General Fund Balance Formula
"BAE"
Budget: Appropriations
$X,XXX
Activity: Expenditures ($X,XXX)
Encumbrances: ($XXX)
= Available appropriations
Property taxes, licenses, and intergovernmental revenues.
Transfers would be considered estimated other financing sources.
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