Which pronouncements have the highest level of authority for state and local governments? A) Financial Accounting Standards Board Statements B) GASB Statements C) Consensus Positions of GASB Emerging Issues Task Force D) GASB Technical Bulletins
6) Which pronouncements have the highest level of authority for state and local governments?
- A) Financial Accounting Standards Board Statements
- B) GASB Statements
- C) Consensus Positions of GASB Emerging Issues Task Force
- D) GASB Technical Bulletins
7) The key focus of government fund accounting concerns
- A) capital expenditures.
- B) intergovernmental transfers from the general fund.
- C) income measurement.
- D) the current ability to provide and fund services and goods.
8) Governmental fund financial statements are prepared on the ________ basis of accounting. Proprietary fund financial statements are prepared on the ________ basis of accounting.
- A) modified accrual; modified accrual
- B) accrual; fund
- C) modified accrual; accrual
- D) blended; discrete
9) Governmental accounting differs from corporate financial accounting primarily because
- A) the size of the government and the various levels would make it unreasonable to use corporate GAAP.
- B) governments lack a profit motive and must focus on accountability to the public they serve.
- C) the government has no stakeholders who require financial reporting.
- D) the government has too many types of organizations to use one type of corporate GAAP.
10) Approved or authorized expenditures that provide legislative control over the expenditure budget are referred to as
- A) appropriations.
- B) allotments.
- C) allocations.
- D) encumbrances.
11) A fund
- A) has its own
accounting equation . - B) has consolidated financial statements for all funds.
- C) must follow GAAS.
- D) always uses modified accrual accounting.
12) Internal Service Funds differ from Enterprise Funds because Internal Service Funds
- A) are a proprietary fund.
- B) are intended to show a profit.
- C) charge for their services.
- D) provide goods and services primarily to other government agencies.
13) Under the modified accrual basis of accounting, revenues are recognized in the period
- A) when the relevant service is done.
- B) when they are collected.
- C) when the paying entity is billed.
- D) when they become both measurable and available.
14) When examining revenue transactions, which of the following transactions is classified as an exchange transaction?
- A) When a homeowner pays property taxes
- B) When a university receives a federal grant that mandates a certain type of research activity
- C) When an aquatic center receives cash for a group swim
- D) When an employer deducts money for state tax withholding
15) Which fund would most likely report
- A) A special revenue fund
- B) An enterprise fund
- C) A capital projects fund
- D) A debt service fund
16) Which type of fund is used to account for a government activity that sells goods or services either solely or almost solely to external customers?
- A) A temporary fund
- B) A general fund
- C) An agency fund
- D) An enterprise fund
17) Centralized data processing, central motor pools and garages, centralized risk-financing activities, and central stores typically would be accounted for using what type of fund?
- A) An agency fund
- B) An enterprise fund
- C) An internal service fund
- D) A trust fund
18) The modified accrual basis of accounting is used for
- A) governmental funds.
- B) proprietary funds.
- C) internal service funds.
- D) enterprise funds.
19) The accounting equation for an agency fund is
- A) Current assets - Current liabilities = Fund Balance.
- B) Assets - Liabilities = Equity.
- C) Assets = Equity + Liabilities.
- D) Assets = Liabilities.
20) The accounting equation for a governmental fund is
- A) Assets = Liabilities + Equity.
- B) Current assets + Noncurrent assets - Current liabilities - Noncurrent liabilities = Net position.
- C) Current assets - Current liabilities = Fund Balance.
- D) Assets = Liabilities + Fund Balance.
21) What funds are reported in Government-wide financial statements?
- A) Governmental only
- B) Proprietary only
- C) Governmental and proprietary
- D) Governmental, proprietary and fiduciary
22) What basis of accounting is used to prepare Government-wide financial statements?
- A) Modified accrual basis
- B) Accrual basis
- C) Cash basis
- D) Fiduciary basis
23) Government-wide financial statements include a
- A) balance sheet, an income statement, and a statement of cash flows.
- B) statement of net assets, a statement of activities, and a statement of cash flows.
- C) statement of net position and a statement of activities.
- D) statement of activities and a statement of cash flows.
24) A comprehensive annual financial report has the following three major sections:
- A) introductory,
financial, and management's discussion and analysis. - B) introductory, financial, and statistical.
- C) transmittal, financial, and statistical.
- D) transmittal, financial, and management's discussion and analysis.
25) Government-wide financial statements exclude the
- A) general fund.
- B) fiduciary funds.
- C) proprietary funds.
- D) special revenue funds.
26) T/F When government entities prepare financial statements using accrual basis the focus is on all economic resources to assist in long-term financial and operational accountability.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
What are the measurement focuses and basis of accounting of governmental funds? What is the traditional rationale for this basis of accounting (used in governmental fund statements)--as opposed to, for example, either a full accrual basis or budgetary basis?
by Bartleby Expert
