Multiple choice

1. If you seek to determine the value of one nation's currency relative to the currencies of other countries, you should isolate the nation's 

A. governmental surplus. 

B. international current module. 

C. exchange rate. 

D. counter trading activity.

2. Upon ordering supplies a government should...

a. Debit encumbrances and credit reserve for encumbrances

b. Debit reserve for encumbrances and credit encumbrances

c. Debit expenditures and credit encumbrances

d. Debit expenditures and credit vouchers payable

3. Upon receiving supplies that had previously been encumbered a government should...

a. Debit reserve for encumbrances and credit encumbrances

b. Debit fund balance and credit reserve for encumbrances

c. Debit fund balance and credit expenditures

d. Debit reserve for encumbrances and credit expenditures

4. Upon closing the books at year-end a government should...

a. Debit fund balance and credit reserve for encumbrances

b. Debit encumbrances and credit reserve for encumbrances

c. Debit fund balance and credit encumbrances

d. Debit reserve for encumbrances and credit encumbrances