[WantToBeDone]

I’m finding the FAR questions on Govt. and NFP to be very basic and straight-forward in Becker and Wiley. Seems like a lot of basic memorization. Is this how it is on the actual exam (1-3 lines, no tricks), or do they throw you curveballs on the exam?

BEC - 80
AUD - 85
FAR - 76
REG - 75

[Red315]

I was wondering the same. I got through it a little too easily.

Jeanne Aparicio

B - 75 (11/2011, First Attempt)
A - 88 (2/2012, First Attempt)
R - 89 (5/2012, First Attempt)
F - 79 (8/31/2012 First Attempt)

I AM DONE!!!!!! BECKER IS AWESOME!!!!

Licensed Florida CPA 09/2012

[jenuno01]

Yep, they're pretty basic on the exam. Easy points!

Class of 2012

[WantToBeDone]

Good to know, thanks! I am one of the few hoping for a third of my test to be Govt/NFP MC's. I don't have any relative work experience, but plan to max out study time on that the day before my exam (Friday.) Hoping for that and some wordy algebraic MC's are my only hopes to pass.

BEC - 80
AUD - 85
FAR - 76
REG - 75

[rlg5150]

From my Bisk review:

The budget of a governmental unit, for which the appropriations exceed the estimated revenues, was adopted and recorded in the general ledger at the beginning of the year. During the year, expenditures and encumbrances were less than appropriations; whereas revenues equaled estimated revenues. The budgetary fund balance account is

a. Credited at the beginning of the year and debited at the end of the year.

b Credited at the beginning of the year and not changed at the end of the year.

c. Debited at the beginning of the year and credited at the end of the year.

d. Debited at the beginning of the year and not changed at the end of the year.

Now, help me “basically memorize” that, lol.

FAR - 85
AUD - 86
BEC - 84
REG - 88

[Anonymous]

the answer is ‘a'….yes?

[WantToBeDone]

@ rlg – is it A? or B?

BEC - 80
AUD - 85
FAR - 76
REG - 75

[rlg5150]

Don't ask me.. Might as well be written in Chinese. I read the book and follow along just fine in the lectures and then get to the questions and have no idea at all how to answer them. I feel like I've never studied accounting a day in my life when it comes to this governmental stuff.

FAR - 85
AUD - 86
BEC - 84
REG - 88

[Anonymous]

I am changing my answer to ‘C'…you reverse it for the same amount. I read it wrong

Beg. of year:

DR: Est. Revenue 90

DR: Budgetary Fund Balance 10

CR: Appropriations 100

End:

DR: Appropriations 100

CR: Est. Revenue 90

CR: Budgetary Fund Balance 10

[WantToBeDone]

Whoops, and I typed my answer wrong. Yes, I was also going with the debits at the beginning of the year. My first guess was C, then D.

BEC - 80
AUD - 85
FAR - 76
REG - 75

[Anonymous]

RLG…are you using becker? they have a pretty good explanation of how the budget it set up and closed..everything is opposite of normal balance and reversed for the same amount

[rlg5150]

I'm using Bisk. I understand the entries for opening and closing the budget… sort of.. It's the second part of the question that throws me off.

During the year, expenditures and encumbrances were less than appropriations; whereas revenues equaled estimated revenues.

I'm not sure what that means. I'm having a really hard time learning these new accounts and which one is a credit or a debit. It's just not making any sense to me.

FAR - 85
AUD - 86
BEC - 84
REG - 88

[Anonymous]

Once the budget entry is made, it can be ignored until it is reversed at the end of the year (if I'm remembering this correctly). So at the beginning of the year, as was posted above, you debit the estimated revenues, credit the appropriations, then put the budgetary fund balance as the “plug.” At the end of the year you simply reverse this entry. Everything else in the question is distracting information.

**Edit – I think CMarling has the entry correct above.

[Anonymous]

I'm not sure what the question is..but all the budgetary accounts have an opposite balance at the beginning of the year as normal. At the end of the year you will reverse those accounts for the same amount.

Beg. of year:

Debits:

Est rev control

est transfer from other funds

budg. fund balance

Credits:

Appropriations Control

Est. transfers to other funds

budg fund balance

end of year:

Reverse all for same amount

Encumbrances/Expenditures: …separate entries from budget

So open purchase order issued:

DR: Encumbrance

CR: Reserve for Encumbrance

When Received:

Reverse for the same amount

then for actual amount spent…

DR: Expenditures

CR: Cash/Payable

Hopefully that helps a little

[Author]

Replies