Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 1.5E
Legally adopted budgets of governmental funds are
- a. fixed-dollar budgets, which establish expenditure limits that are not to be exceeded.
- b. fixed budgets that cannot be modified during the budget year.
- c. flexible budgets in which the expenditure limits are automatically modified to reflect larger than budgeted levels of various services.
- d. always adopted using the same basis of accounting required by GAAP.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
An internal service fund normally uses which of the following budgetary accounts?
Multiple Choice
Encumbrances.
Estimated Revenues.
Appropriations.
An internal service fund normally does not use budgetary accounts.
Which one of the following is the incorrect statement regarding Budgets? Select one:
a. Budget is qualitative statement of policy
b. All are correct statement regarding budget.
C. Budget is a predetermined statement
d. Budget prepared for a defined period of time
Which of the following statements is the intended goal or outcome of a traditional line-item budget?
Estimate the costs of accomplishing measurable tasks or activities
Provide mechanisms for expenditure control
Focus attention on the value of public services provided
Require crosswalks to identify appropriations to agencies
Chapter 1 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 1 - Discuss (a) the similarities in accounting for...Ch. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Contrast the terms expense and expenditure.Ch. 1 - It was noted in this chapter that most of the...Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - Prob. 1.3ECh. 1 - In which of the following situations would the...Ch. 1 - Legally adopted budgets of governmental funds are...Ch. 1 - Which of the following statements is false? A fund...Ch. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - (Expenditures vs. Expenses) Family Services, a...Ch. 1 - (Statement of Revenues and ExpendituresWorksheet)...Ch. 1 - Prob. 2P
Additional Business Textbook Solutions
Find more solutions based on key concepts
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (11th Edition)
Bank loan; accrued interest LO132 On October 1, Eder Fabrication borrowed 60 million and issued a nine-month, ...
Intermediate Accounting
List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and p...
Auditing and Assurance Services (16th Edition)
Based on your answers to the above questions, should Lockwood invest in the machinery?
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Fundamental and Enhancing Characteristics. Identify whether the following items are fundamental characteristics...
Intermediate Accounting
How would the decision to dispose of a segment of operations using a split-off rather than a spin-off impact th...
Advanced Financial Accounting
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Proprietary funds: Multiple Choice Can be required to operate under a legally adopted budget. Are required to present budgetary comparison schedules. More than one statement above is true. Are required to integrate budgetary accounts into their accounting system.arrow_forwardIt is proper budgeting procedure to begin with estimated revenues, but why might some nonprofit entities begin planning their expenditures instead of their revenues?arrow_forwardThe Appropriations account of a governmental fund is credited when: a. The budgetary accounts are closed b. The budget is recorded c. Supplies are purchased d. Expenditures are recordedarrow_forward
- Which basis of accounting should be used when preparing a budgetary comparison schedule (or statement) for a government's General Fund?arrow_forwardWhich of the following statements is correct? The General Fund, Special Revenue, and Debt Service funds use the modified accrual basis and financial resources focus and the Capital Projects and Permanent funds do not. The General Fund and Special Revenue fund provide budget to actual comparisons and the Capital Projects, Debt Service and Permanent Funds do not. The General Fund and Special Revenue Fund have an indefinite life and the Permanent, Capital Projects and Debt Service have limited lives. The General Fund and Special Revenue funds use encumbrance accounting and the Capital Projects, Debt Service and Permanent funds do not.arrow_forwardGovernment-wide financial statements make a distinction between program revenues and general revenues. How is that difference shown? Choose the correcta. Program revenues are offset against the expenses of a specific function; general revenues are assigned to governmental activities and business-type activities in general.b. General revenues are shown at the top of the statement of revenues and expenditures; program revenues are shown at the bottom.c. General revenues are labeled as operating revenues; program revenues are shown as miscellaneous income.d. General revenues are broken down by type; program revenues are reported as a single figure for the government.arrow_forward
- Which of the following is NOT correct about budgetary control. Select one: O a. It is a legally compulsory process which is controlled by governments. O b. It is the process of establishment of budgets relating to various activities and comparing the budgeted figures with the actual performance for arriving at deviations, if any. O c. There cannot be budgetary control without budgets. O d. It is a system which uses budgets as a means of planning and controlling.arrow_forwardDescribe the purpose and the financial reporting requirements for the General and Special Revenue Funds. Include the way the modified basis of accounting is used to account for revenues and expenditures along with the use of budgetary accounts in your discussion.arrow_forwardWhich of the following is NOT correct about budgetary control. Select one: a. It is a legally compulsory process which is controlled by governments. b. There cannot be budgetary control without budgets. c. It is a system which uses budgets as a means of planning and controlling. d. It is the process of establishment of budgets relating to various activities and comparing the budgeted figures with the actual performance for arriving at deviations, if any.arrow_forward
- Which of the following is an example of an external report? Select one: a. Budget b. Plan c. Annual report d. None of the abovearrow_forwardThe governmental fund financial statements are intended to report on fiscal accountability. True or Falsearrow_forwardWhich of the following is NOT one of the essentials of a budget? Select one: a. It has a standard time period and prepared only on a yearly basis. b. It is a predetermined statement and its purpose is to attain a given objective c. It is prepared for a definite future period. d. It is a statement prepared prior to a defined period of time.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
What is Budgeting? | Budgetary control | Advantages & Limitations of Budgeting; Author: Educationleaves;https://www.youtube.com/watch?v=INnPo0QPXf4;License: Standard youtube license