Q&A Hero

Q: An adjusted trial balance is provided below for the Dade County copy services department at June 30, 2011.Cash $ 21,000Due from Enterprise Fund 6,000Due from Debt Service Fund 2,000Supplies inventory 5,000Supplies used 3,000Equipment 32,000Salary expense 25,000Utility expense 9,000Depreciation expense 6,000Operating transfer to General Fund 4,000$113,000Accumulated depreciation $ 24,000Accounts payable 2,000Advance from General Fund (not for capital assets) 10,000Capital Contribution from General Fund 1,000Net assets (beginning) 28,000Revenue - services billed 48,000$113,000Required:1. Prepare a statement of revenues, expenses and changes in net assets for the copy services department for the year ended June 30, 2011.2. Prepare a statement of net assets for the copy services department at June 30, 2011. Assume all assets are not externally or internally restricted.

Q: All of the following are reasons for an oligopoly to occur EXCEPTA) economies to scale. B) barriers to entry.C) independence among firms. D) merger.

Q: Thoroughgood County has a municipal golf course and tennis club which is funded by the membership fees it charges. The club also has 6% bonds outstanding amounting to $20,000,000 on which it pays interest semi-annually. The club had the following transactions. 1. An addition to the golf clubhouse was added for $2,000,000, funded out of operations. 2. The following expenses were incurred and paid: $80,000 wages; $10,000 payroll taxes; $45,000 water bill; and $12,000 equipment repair. 3. Interest on the bonds was paid amounting to $600,000. 4. $5,000,000 of operating cash excess was repaid to the general fund for a previous loan. 5. Depreciation of $500,000 was recorded for the buildings. Required:Prepare the necessary journal entries for each of the above transactions for the Enterprise Fund.

Q: In the short run, a monopolistically competitive firm A) always earns positive economic profits. B) never earns positive economic profits. C) can earn positive, negative, or zero economic profits. D) always earns positive accounting profits.

Q: The following transactions relate to a municipal golf course and tennis club, financed with debt secured by membership fees. 1. The General Fund loaned $25,000,000 cash to the Enterprise Fund. The note is not interest-bearing. 2. The municipal golf course and tennis club purchased land and constructed the facilities which totaled expenditures of $23,700,000. 3. Bonds were issued by the municipal golf course and tennis club for $20,000,000, par value of the bonds. 4. Membership fees were billed in the amount of $4,800,000. $4,200,000 was collected. 5. $5,000,000 was repaid to the general fund, with the anticipation of repaying $5,000,000 more per year for the next four years.Required:Prepare the necessary journal entries for each of the above transactions for the Enterprise Fund.

Q: In the long run, all of the following are true for a monopolist EXCEPTA) P > ATC. B) P = MC. C) MR = MC.D) P > AVC.

Q: The City of Sill established an Internal Service Fund to provide cleaning services to all city offices and departments. The following transactions took place with respect to this event.1. The General Fund contributed cash of $49,000 to the Internal Service Fund. The General Fund provided a $10,000 loan to the Internal Service Fund.2. On January 1, 2011, the Internal Service Fund acquired a floor waxing machine for cash of $5,000. It has a 5 year life with no salvage value, and the city uses straight-line depreciation on their assets 3. The cleaning services department billed other government agencies and departments $226,000 and collected $187,000.4. The cleaning services department incurred and paid the following expenses: cleaning personnel wages, $65,000; payroll taxes, $10,000; cleaning supplies, $13,000; and office rental and utilities, $77,000. The cleaning services department also repaid the general fund for the loan.5. The cleaning services department prepared the journal entry to depreciate their assets for the year ending December 31, 2011.Required:Prepare the necessary journal entries for each of the above transactions for the Internal Service Fund.

Q: ʺIn the long run, a perfectly competitive firmʹs average total cost is always below the market clearing price.ʺ Agree or disagree? Why?

Q: Willborough County had the following transactions in 2012.1. A central motor pool was established with a $200,000 nonreciprocal transfer from the General Fund.2. The water and sewer authority, which provides services to residents for a fee, issued a bond offering at $750,000 par. Bonds proceeds are restricted to renovating the treatment facility.3. Willborough received a grant from the state to be used for renovation of the courthouse amounting to $800,000. The General Fund will temporarily provide $100,000 cash, because the grant is set up on a reimbursement basis and will not be distributed until proper expenditures are documented.4.Willborough's central motor pool bills out automobile usage to various government agencies amounting to $42,000.5. The General Fund transfers $67,000 out of the operating budget to fund the county employees' pension plan.Required:Prepare the necessary journal entries for each of the above transactions for all funds affected. Be sure to identify the fund type for each entry

Q: The profit-maximizing level of output for a firm occurs at the point at whichA) P = ATC. B) P = AVC. C) MR = MC. D) MR = ATC.

Q: Jefferson County had the following transactions in 2012.1. $27,000 in membership fees was collected at the municipal pool.2. A county collects $130,000 in sales taxes on behalf of the cities within its boundaries.3. A $500,000 bond offering was issued at 102 to fund the construction of a new city hall. The premium on the bonds was transferred to the Debt Service Fund(nonreciprocal).4. A private foundation contributes a stock portfolio with a fair value of $100,000 to the county. A trust agreement specifies the earnings on the fund is to be used by the local park which is owned and operated by a private foundation, and the principal is to be held intact indefinitely.5. The county sends bills out for water and sewer provided to residents, amounting to $340,000.Required:Prepare the necessary journal entries for each of the above transactions for all funds affected. Be sure to identify the fund type for each entry.

Q: What is the difference between average variable costs and average total costs?

Q: The City's municipal golf course had the following transactions.1. Received a beautification(operating) grant from the state for $600,000. Received cash of $600,000.2. Incurred and paid qualifying expenses under the state grant program in (1) above of $280,000.3. Incurred and paid construction costs on an uncompleted clubhouse for $1,200,000.4. Received $1,000,000 cash from a grant to assist with construction costs for the clubhouse.Required:Given that the golf course is operated based on user fees for upkeep, prepare the necessary journal entries for each of these transactions.

Q: The short run isA) a period of time during which at least one input cannot be changed. B) a period of time during which no inputs can be changed.C) a period of time during which all inputs can be changed. D) a period of time shorter than one year.

Q: Proprietary funds are required to prepare financial statements that include:A. Statement of ActivitiesB. Statement of Revenues, Expenditures and Changes in Fund BalanceC. Balance SheetD. Statement of Cash FlowsE. Statement of Net AssetsF. Statement of Revenues, Expenses and Changes in Net AssetsA) C, D, FB) A, B, DC) B, C, DD) D, E, F

Q: A firm is making zero economic profits. From this, we know thatA) the firm is going to go out of business. B) implicit costs are zero.C) the firm is going to stay in business, but will not be able to attract new financial capital. D) the firm will stay in business since it is covering all relevant opportunity costs.

Q: The trust fund for a school library is required to prepare financial statements that includeA) Balance Sheet and Income Statement.B) Statement of Revenues, Expenses and Changes in Fiduciary Net Assets.C) Statement of Fund Balance and Statement of Changes in Fund Balance.D) Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets.

Q: In the above figure, if the budget line is the line DF, the consumer will maximize utility at pointA) A. B) B. C) C. D) G.

Q: The financial statements of a proprietary fund are similar to those of a business enterprise except forA) proprietary funds do not report income taxes on the operating statement.B) proprietary funds do not have paid-in capital or capital stock.C) proprietary funds use modified accrual accounting.D) both A and B

Q: Why does total utility rise at a decreasing rate as an individualʹs consumption of an item increases?

Q: Interest payments on loans outstanding that do not relate to acquiring, constructing or improving capital assets are classified as ________ on the cash flow statement for an Enterprise Fund.A) Cash Flows from Operating ActivitiesB) Cash Flows from Noncapital Financing ActivitiesC) Cash Flows from Capital and Related Financing ActivitiesD) Cash Flows from Investing Activities

Q: If the price of apples went up by 25 percent, which of the following values of the cross price elasticity for cars would be most reasonable to anticipate?A) 0.0 B) 1.2 C) -2.5 D) -1.0

Q: Proceeds from bonds issued for the construction of capital assets are classified on the Statement of Cash Flows for an Enterprise Fund asA) Cash Flows from Operating Activities.B) Cash Flows from Noncapital Financing Activities.C) Cash Flows from Capital and Related Financing Activities.D) Cash Flows from Investing Activities.

Q: The price elasticity of demand measuresA) changes in demand.B) how responsive producers are to a change in demand.C) how responsive consumers are to a change in price.D) how responsive consumers are to a change in income.

Q: On the Statement of Net Assets, in place of stockholders' equity, proprietary funds reportA) Retained Earnings only.B) Restricted Cash only.C) Unrestricted Cash only.D) Net Assets.

Q: Transaction costs are A) the costs, such as sales taxes, that are imposed by the government. B) equal to the hourly cost of a lawyer used to write a contract. C) the costs associated with making, reaching, and enforcing agreements. D) not true costs because they relate to time rather than real resources.

Q: Platinum City collects state sales taxes quarterly from local businesses and then gives the state revenue department the money at the end of the year. The sales taxes would go in Platinum City'sA) special revenue fund.B) general fund.C) agency fund.D) enterprise fund.

Q: Rising healthcare costs are attributable toA) people living longer and desiring more care.B) reliance on expensive technology to support and prolong life.C) third-party financing of healthcare costs. D) all of the above

Q: What basis of accounting is used by fiduciary funds?A) Modified accrual accountingB) Accrual accountingC) Cash basis accountingD) Present value accounting

Q: The less bowed the Lorenz Curve, theA) more equal the income distribution. B) less equal the income distribution.C) greater the number of low-income people. D) greater the number of high-income people.

Q: What is a significant difference for agency funds when compared to governmental funds?A) An agency fund has a separate ledger.B) An agency fund does not report revenues.C) Agency funds are not associated with any governmental unit.D) An agency fund will not balance because there is no fund balance account.

Q: The United Auto Workers is striking against Ford. The Teamsters refuse to deliver steel to Ford.This is an example ofA) a jurisdictional dispute and is illegal under the Taft -Hartley Act. B) a secondary boycott and is illegal under the Taft -Hartley Act.C) a sympathy strike and is illegal under the Taft-Hartley Act. D) a closed shop and is illegal under the Wagner Act.

Q: The price elasticity of demand for labor equalsA) the percentage change in the price of labor divided by the percentage change in the supply of labor.B) the change in the quantity demanded of labor divided by the change in the price of labor.C) the slope of the demand curve for labor.D) the percentage change in the quantity demanded of labor divided by the percentage change in the price of labor.

Q: At December 31, 2011, an Enterprise Fund has the following adjusted accounts outstanding:Insurance Expense $2,000Depreciation Expense 3,000Supplies Expense 10,000Salaries Expense 100,000Service Revenues 123,000When preparing the closing entry for the temporary accounts at December 31, 2011, the Enterprise Fund's accountant willA) credit Retained Earnings $8,000.B) credit Net Cash, $8,000.C) credit Net Assets, Unrestricted $8,000.D) credit Invested Capital Assets, Net of Related Debt, $8,000.

Q: An enterprise fund collects $100,000 cash for customer deposits to insure timely payment for services. What journal entry did the enterprise fund prepare?A) Debit Cash $100,000, credit Revenue $100,000B) Debit Cash $100,000, credit Deferred Revenue $100,000C) Debit Restricted Cash $100,000, credit Customer Deposits $100,000D) Debit Restricted Cash $100,000, credit Revenue $100,000

Q: As a result of a conviction under the Sherman Antitrust Act, Standard Oil of New Jersey A) was fined for its extensive price discriminating activity. B) was restrained from oil exploration for twenty -five years, which enabled other oil firms to assume leadership in the industry. C) was broken up into many smaller companies. D) went bankrupt and no longer is in existence.

Q: GASB requires ________ method(s) for the cash flow statement for proprietary funds.A) the reconciliationB) the indirectC) the directD) either the direct or indirect

Q: Monopolistically competitive markets and oligopolies are similar in thatA) the number of firms is identical.B) the kinked demand curve can be used to analyze the firmsʹ pricing decisions. C) there is mutual interdependence amongst the firms.D) nonprice competition is a tool used.

Q: The financial statements of proprietary funds are similar to business enterprises with the exception that proprietary funds do notA) report fixed assets.B) report property taxes.C) separate current and noncurrent assets.D) report noncurrent liabilities.

Q: A situation in which one firmʹs actions with respect to price, quality, advertising and related changes may be strategically countered by the reactions of one or more other firms in the industry is known asA) strategic dependence. B) economies of scale. C) the concentration ratio. D) barriers to entry.

Q: The unadjusted trial balance for the general fund of the City of Jordan at June 30, 2011 is as follows:DebitsAccounts receivable $ 90,000Cash 110,000Due from agency fund 19,000Encumbrances 18,000Estimated revenues 1,250,000Expenditures 1,090,000Taxes receivable 175,000CreditsAllowance for doubtful accounts 15,000Allowance for uncollectible taxes 35,000Appropriations 1,180,000Due to internal service fund 51,000Fund balance - unassigned 52,000Reserve for encumbrances 18,000Revenues 1,130,000Taxes received in advance 22,000Vouchers payable 249,000Supplies on hand at June 30, 2011 totaled $17,000. The $18,000 encumbrance relates to equipment ordered but not received by fiscal year-end.Required:Prepare a balance sheet for the general fund of the City of Jordan at June 30, 2011.

Q: A monopolistically competitive firm finds its profit-maximizing rate of output by equatingA) the marginal revenue of advertising with the marginal cost of advertising.B) average revenue and average total cost. C) price and marginal cost.D) marginal revenue and marginal cost.

Q: For a profit-maximizing monopolist,A) P > MC. B) P = MC. C) P = MR. D) P = ATC.

Q: The following information regarding the fiscal year ended September 30, 2011, was drawn from the accounts and records of the Mayberry County general fund:Revenues and other asset inflows:Taxes $ 12,000,000Licenses and permits 2,500,000Intergovernmental revenues 1,000,000Capital lease for fixed asset 1,200,000Receipt of cash from terminated fund 1,800,000Expenditures and other asset outflows:General government expenditures 7,500,000Public safety expenditures 2,000,000Judicial system expenditures 1,200,000Health and welfare expenditures 1,750,000Equipment purchases 750,000Payment to debt service fund to cover future debtservice on general government bonds 500,000Total fund balance, October 1, 2010 $ 3,000,000Required:Prepare a statement of revenues, expenditures, and changes in fund balance for the Mayberry County general fund for the year ended September 30, 2011.

Q: If firms in a perfectly competitive industry are earning positive economic profits, then what will happen in the long run?

Q: Address the following situations separately.1. For the budgetary year beginning July 1, 2011, Coastal City expected the following cash flow resources:Property taxes, licenses, and fees $3,000,000Proceeds of debt issue 1,000,000Interfund transfers to debt service fund 750,000In the budgetary entry, what amount did Coastal City record for estimated revenues?2. During the fiscal year ended June 30, 2011, Western County issued purchase orders totaling $7,000,000. Western County received $6,500,000 of invoiced goods at the encumbered amounts and paid $6,100,000 toward them before year-end.How much were Western County's encumbrances on July 1, 2011?3. The following information pertains to property taxes levied ($1,035,000 total) by Southern Township for the calendar year 2011:Expected collections during 2011 $750,000Expected collections in first 60 days of 2012 200,000Expected collections during the remainder of 2012 50,000Expected collections during January 2013 30,000Estimated to be uncollectible 5,000What amount did Southern Township report for property tax revenues in 2011?4. The following information pertains to Northern City's general fund for 2011:Expenditures 5,500,000Other financing sources 1,000,000Other financing uses 3,000,000Revenues 9,000,000At what amount will Northern City's total fund balance increase (decrease) in 2011?

Q: For a perfectly competitive firm,A) price is greater than marginal revenue.B) price equals marginal revenue.C) price is less than marginal revenue.D) there is no relationship between price and marginal revenue.

Q: Middlefield County incurred the following transactions during 2011:1. The county authorized a new general obligation bond issue of $5 million par to construct an office building with a contract price of $4,975,000. The bonds were issued for $4,980,000.2. The county levied real property taxes of $10,000,000. Eighty-five percent of the net taxes were collected immediately. Two percent of the total levy was estimated to be uncollectible.3. The office building was completed and the county paid the contract price to the contractor.4. The General Fund transferred $500,000 to the Debt Service Fund.5. The county paid $200,000 for interest on the bonds from the Debt Service Fund.Required:Prepare journal entries for each of the above transactions. Identify the appropriate fund or funds used by Middlefield County.

Q: If average total cost is decreasing as more and more units are produced, then marginal cost must beA) rising. B) constant. C) below average total cost. D) negative.

Q: Peking County incurred the following transactions during 2011:1. Marketable securities were donated to support the county's bike and nature trails. The donor acquired the securities for $35,000 ten years earlier; however, their current market value was $200,000. The donor specified that all income from the securities be used for the trails. The principal is to be held intact for an indefinite period of time.2. Computer equipment was ordered for general fund departments. The estimated cost was $48,000.3. The county received the computer equipment. The actual cost was $47,750, of which $42,000 was paid to the vendor before year-end.4. The county sold a (general government) dump truck that originally cost $55,000. The county sold the truck at auction for $3,300. The book value of the truck at the time of sale was $0.5. The government leased equipment for the general government under a capital lease agreement. The present value of the minimum lease payments was $120,000. The county made an initial down payment of $10,000.Required:Prepare journal entries for each of the above transactions. Identify the appropriate fund or funds used by Peking County.

Q: For a firm, we define the short run as a period of time during whichA) at least one input cannot be changed. B) all inputs can be changed.C) only the plant size can be changed. D) all inputs cannot be changed.

Q: The trial balance for the General Fund for Golden City held the following balances at June 30, 2011, just before closing entries were made:Due from other funds $ 2,700Fund balance - unassigned 51,000Estimated revenues 208,000Revenues 198,900Appropriations 196,500Expenditures - current year 193,800Expenditures - prior year 4,500Other Financing Sources - Transfer from Debt Service Fund 6,000Required:Prepare the necessary closing entries.

Q: A person starts his own business after quitting his job in which he made $75,000. Expenses include $100,000 for wages and salaries, which includes a wage for the owner of $75,000, utilities of $5000, equipment of $50,000, and materials of $40,000. If revenues are $200,000, his accounting and economic profits are respectivelyA) $80,000 and $5000. B) -$70,000 and -$70,000. C) -$70,000 and $5000. D) $5000 and $5000.

Q: The general fund trial balance for Lakeview City held the following balances at September 30, 2011, just before closing entries were made:Due from other funds $ 8,000Fund balance - unassigned 50,000Estimated revenues 180,000Revenues 177,000Appropriations 176,000Expenditures - current year 169,000Expenditures - prior year 16,000Other financing sources - transfer in from Capital Projects Fund 62,000Required:Prepare the necessary closing entries for the General Fund

Q: In the above figure, if the budget line is the line DE, the consumer will maximize utility at pointA) A. B) B. C) C. D) G.

Q: Prepare journal entries to record the following grant-related transactions for a municipality special revenue fund.1. Special Revenue Fund awarded an operating grant from the state, $2,500,000 (cash will be received after qualified expenditures are made).2. Special Revenue Fund received funds of $1,600,000, temporarily transferred from the General Fund.3. Incurred qualifying expenditures on the state grant program of $1,600,000 and paid them with funds temporarily transferred from the General Fund.4. Received a federal grant to finance planting of trees in city, $4,500,000 (cash received in advance).5. Incurred and paid cost of $3,000,000 for planting 10,000 trees in city.

Q: Newspaper vending machines are often built so that customers can pay to lift a door and take a paper off a pile of daily newspapers. Newspaper distributors are not concerned about customers taking the whole stack of papers becauseA) the total utility of a daily newspaper is zero.B) the marginal utility of any one daily newspaper is zero. C) the marginal utility of a second daily newspaper is zero. D) the price of a daily newspaper is relatively low.

Q: 1. Urban City issued $6 million of general obligation bonds at par to finance the construction of a city building. The bonds are 6%, 10-year bonds, and interest is paid on June 30 and December 31. 2. The city transferred $3,600,000 from its General Fund to its Debt Service Fund to provide a portion of the resources needed to service the bonds. 3. The city paid the first interest payment to the bondholders. Required:Prepare journal entries for each of the above transactions. Identify the appropriate fund or funds used by the city of Urban.

Q: If the price of apples went up by 25 percent, which of the following values of the cross price elasticity for oranges would be most reasonable to anticipate?A) 0.0 B) 1.2 C) -2.5 D) -1.0

Q: The City of Attross entered the following transactions during 2011: 1. The city authorized a bond issue of $2,500,000 par to finance construction of a fountain and pavilion in the city square. The bonds were issued for $2,560,000. The premium was transferred to the fund for which the debt will be serviced. (This was a nonreciprocal transfer.) 2. The city entered into a contract for construction of the fountain at an estimated cost of $2,425,000. 3. The city received and paid a bill for $2,445,000 from the contractor upon completion of and approval of the fountain. 4. The unused bond proceeds were set aside for debt service on the bonds. Accordingly, those resources were paid to the appropriate fund(nonreciprocal). Required:Prepare journal entries for each of the above transactions. Identify the appropriate fund or funds used by Attross.

Q: When discussing the price elasticity of demand we generally refer to the absolute price elasticity of demand by consumers. This means that we willA) disregard the law of demand.B) ignore its relationship to demand.C) disregard the minus sign.D) consider absolute rather than relative changes.

Q: For each of the following transactions relating to the startup of a community pool, determine the fund(s) being affected and prepare the appropriate journal entry for each. Be sure to note the fund type with each journal entry prepared. 1. General obligation bonds are issued at face value of $500,000 to construct a new community pool. 2. Cash of $100,000 is received from a state grant. Grant is set up to support the construction of the community pool. 3. A community fund-raiser by a citizens' group raises $50,000 which is donated to the pool fund, with the restriction placed on it that only earnings are to be used for lifeguard wages, and the principal may not be used until such time as the pool ceases to operate, at which time the principal will revert to the general fund. 4. Construction is completed and the contractors invoices received, totaling $578,000. The invoices are paid within 60 days. 5. The balance of funds from the general obligation bonds and state grant that was not used is transferred to the General Fund.

Q: One difficulty in using voluntary transactions to internalize externalities is thatA) people are motivated by self-interest and are often unwilling to engage in a transaction that might make another person better off.B) the government usually will not enforce contracts of this type.C) transaction costs of coming to an agreement can be very large when numerous people are involved.D) people usually donʹt understand what the real opportunity costs are that they face.

Q: The City of Electri entered the following transactions during 2011: 1. Borrowed $120,000 for a six-month term, to be paid upon receipt of property tax payments which were previously billed. 2. Used the funds borrowed to purchase a new fire truck. The truck is expected to have a 15-year useful life, and a $5,000 residual value. 3. Received $90,000 cash from a state grant. Funds are restricted for the purchase of a second fire truck. 4. Used the grant funds received to purchase a second fire truck. The truck is expected to have a 15-year useful life, and a $5,000 residual value. 5. Nonreciprocal transfer of $50,000 to the Debt Service Fund to be used toward repayment of the note. Required:Prepare the journal entries in the General Fund for the transactions.

Q: Other things being equal, a national health insurance program wouldA) decrease the demand for health care. B) decrease moral hazard.C) decrease total health care expenditures.D) reduce individualsʹ incentives to make decisions that promote better health.

Q: Old West City had the following transactions in fiscal 2011. Assume that all expenditures were properly appropriated in the fiscal 2011 budget.1. A six-month loan was made to the special revenue fund from the general fund amounting to $28,000.2. A purchase order for landscaping maintenance services was issued in the amount of $43,000.3. A $10,000 nonreciprocal transfer was made to the debt service fund to pay interest amounts outstanding.4. The final invoice for landscaping maintenance was received in the amount of $39,000, and it was scheduled to be paid in 30 days.5. The city enters into a capital lease of fixed assets for the general government. The present value of the minimum lease payments equals $70,000.Required:Prepare the journal entries for the General Fund.

Q: The more bowed out the Lorenz curve, theA) less equal the income distribution. B) more equal the income distribution.C) greater the overall wealth in the economy. D) less the overall wealth in the economy.

Q: Bounty County had the following transactions in 2011.1. The budget for the county was approved, showing estimated revenues of $320,000 from local income taxes, and total estimated expenditures of $316,000.2. Tax bills were mailed amounting to $326,000, which are due in 60 days. All but 2% was expected to be collectible.3. Taxes collected prior to the due date amounted to $260,800. The balance was delinquent.4. $4,200 of taxes due were determined to be uncollectible and written off.5. The year-end books were closed, with the expectation that the remaining taxes due would be collected evenly over the first two months after the fiscal year end.Required:Prepare the journal entries for the General Fund for the transactions.

Q: The Taft-Hartley Act of 1947 madeA) union shops illegal. B) closed shops illegal.C) sympathy strikes legal. D) secondary boycotts legal.

Q: A pre-closing trial balance included the following account balances for Simpli City:Due from other funds $ 3,500Fund balance - unassigned 14,000Estimated revenues 20,000Revenues 22,000Appropriations 18,000Expenditures - current year 19,000Expenditures - prior year 1,500Other Financing Source - Nonreciprocal transfer in 1,000Required:Prepare the necessary closing entries for the General Fund.

Q: All of the following make the demand for labor more elastic EXCEPT A) greater elasticity of demand for the final product.B) the longer the time period under consideration.C) the smaller the proportion of total costs accounted for by labor.D) the easier it is to substitute another input for labor.

Q: Carson County had the following transactions for their General Fund relating to the levy and collection of property taxes.1. Property tax bills for $1,000,000 are sent to property tax owners. Taxes are due in 45 days. History shows that Carson County should expect 1.5% of the property taxes to be uncollectible.2. $850,000 in property taxes is collected. The remaining receivables are past due.3. An additional $80,000 of the delinquent taxes is collected.4. Wrote off $10,000 of delinquent taxes determined to be uncollectible.Required:Prepare the journal entries in the General Fund for the transactions.

Q: Section 1 of the Sherman Antitrust Act makes it illegal to A) form a monopolistically competitive firm. B) restrain trade. C) price discriminate. D) have an oligopoly.

Q: Goodwill County had the following transactions for their General Fund in the first month of their fiscal 2012 year, which ends June 30, 2012.1. The budget was approved, with $1,200,000 expected from property taxes, and another $5,000,000 expected from sales taxes. The budget showed these funds were expected to be spent on Salaries and Wages, $3,100,000; Utilities, $1,800,000; Rent, $900,000; and Supplies, $200,000.2. Supplies were ordered in the amount of $33,000.3. The electric bill was paid upon receipt in the amount of $75,000.4. Property taxes were billed in the amount of $1,200,000, due on December 31. Bad debts are estimated at 1% of receivables.5. Supplies were received, but the invoice amount was $35,000 and will be paid in 35 days. Supplies are used quickly and are not inventoried.6. Property tax payments were received amounting to $100,000.7. Payment was received from merchants for sales tax collections amounting to $400,000.Required:Prepare the journal entries for the General Fund that would be required for these transactions.

Q: In which market structures is there product differentiation? A) Perfect competition and monopolistic competition B) Monopolistic competition and oligopoly C) Oligopoly and monopoly D) Perfect competition and monopoly

Q: Match the following fund balance descriptions for a General Fund with the proper classification for a fund balance. Each classification may be used more than once.A. Nonspendable Fund BalanceB. Restricted Fund BalanceC. Committed Fund BalanceD. Assigned Fund BalanceE. Unassigned Fund Balance_____1. Amounts can only be spent for the specific purposes determined by a formal action of the government's highest level of decision-making authority._____2. Amounts can only be spent for the specific purposes stipulated by constitution, external resource provider or enabling legislation._____3. Residual classification of funds for the General Fund._____4. Dollar amount of Ending Inventory._____5. Amounts intended to be used by the government for specific purposes but do not meet the criteria of restricted or committed._____6. Dollar amount of endowment principal

Q: When managers in oligopolistic firms make decisions that affect output or price, they mustA) also be sure they erect barriers to entry to prevent new entrants from affecting their plans. B) anticipate the reactions of their rivals and plan accordingly.C) register with the Antitrust Division of the Department of Justice. D) inform the regulators of their industry about their plans.

Q: Which statement below is incorrect with respect to the Government-wide financial statements?A) All governmental fund categories must convert to the modified accrual basis of accounting.B) It is necessary to eliminate interfund balances within the governmental funds.C) Capital lease liabilities associated with governmental funds must be included on the Government-wide financial statements.D) All fixed assets and long-term debt for governmental funds must be included on the Government-wide financial statements.

Q: Which will be true for a monopolistic competitor experiencing short-run losses?A) P > ATC B) P = ATC C) P < ATC D) P < MC

Q: A Capital Projects Fund awards the construction of a building to a construction contractor at a contract cost of $1,000,000. What entry is prepared by the Capital Projects Fund?A) Debit Expenditures $1,000,000, Credit Liability $1,000,000B) Debit Building $1,000,000, Credit Expenditures $1,000,000C) Debit Other Financing Uses $1,000,000, Credit Expenditures $1,000,000D) Debit Encumbrances $1,000,000, Credit Reserve for Encumbrances $1,000,000