Long-term debt of a governmental unit would be reported in the:
government-wide financial statements and proprietary fund financial statements.
According to GASB Standards, which of the following is an example of a nonspendable fund balance?
Resources (such as supplies) that are used in operations rather than converted to cash AND the corpus of a permanent fund that must be maintained AND prepaid insurance
Under GASB, accrual accounting is used for:
government-wide, proprietary fund, and fiduciary fund financial statements only.
Which of the following statements is false?
A CAFR is not required for entities with only a general fund.
The fund basis statements for governmental funds are presented using the
...
The term "fiduciary funds" applies to:
private-purpose trust, investment trust, pension trust and agency funds
The term "proprietary funds" applies to:
enterprise and internal service funds only.
When there are transactions between funds:
one fund is debited and the other fund is credited (i think)
Organized versions of accounting standards are called:
codifications
Organizations owned or controlled by the government are called ____ organizations.
public
In addition to the government-wide statements, governments are required to prepare fund financial statements for which of the following category of funds?
governmental, proprietary and fiduciary funds.
Which of the following is true regarding the government-wide Statement of Net Position?
Discretely presented component units are included in a separate column (or columns).
The statistical section typically presents ____ years of information in each table or schedule.
10
Which of the following is false regarding the financial reporting entity of a state or local government?
...
Governmental fund statements are prepared using:
Current financial resources measurement focus and modified accrual basis of accounting.
With respect to the preparation of fund basis financial statements, governmental funds other than the General Fund are considered to be major when which of the following conditions exist?
With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of that individual governmental fund constitutes 10% of the total for the governmental fund cat
Which of the following is true regarding GASB's definition of the financial reporting entity?
Blending is used to incorporate component units when those component units are, in substance, part of the primary government.
The financial reporting entity might include a primary government, component units, joint ventures, or a jointly governed organiz
Restricted net position includes resources restricted by:
...
According to GASB Codification Section 2200.109, the MD&A section of the CAFR:
is limited to a specific set of required items
Sales taxes, income taxes, and motor fuel taxes are examples of which class of nonexchange transactions?
Derived tax revenues.
All of the following are budgetary accounts except:
Other Financing Sources.
Property Taxes, special assessments, and fines and forfeits are types of nonexchange transactions. These are examples of:
Imposed nonexchange transactions.
Wages that have been earned by the employees of a governmental unit, but not paid at year-end, should be recorded in the General Fund by a debit to which of the following accounts?
Expenditures.
The general ledger journal entry in the General Fund to record actual expenditures and reversal of the associated encumbrance would include:
A credit to Encumbrance Control
Assume estimated revenues exceed appropriations. When the budget for the General Fund is recorded, the journal entry will include:
a credit to Budgetary Fund Balance.
Net resources of a governmental fund that the governing body has specified for a particular use through ordinance or resolution are reported in the ___ fund balance.
committed
While the purpose of a commercial business is to generate a profit for the benefit of its owners, governments exist for the well-being of citizens by providing public services�whether or not the services are profitable undertakings.
Organizational Purposes
Since taxes do not involve an earnings process, the timing of the recognition of tax revenue is not always clear.
Sources of Revenues
In an effort to provide assurance that resources are used according to legal or donor restrictions, governments use fund accounting.
Relationship with Stakeholders
Taxes are levied through the legislative process by officials elected by the citizens. Because citizens and businesses are then required to pay these taxes, governments have an obligation to demonstrate accountability for these public funds.
Relationship with Stakeholders
Government accounting practices are not focused on the measurement of net income for the purpose of measuring return to investors. Rather they are intended to satisfy the information needs of a variety of users.
Organizational Purposes
Because the U.S. and state constitutions grant state and local governments the ability to tax, governments very rarely go out of business.
Potential for Longevity
Governments derive many of their resources from taxes. Individuals and businesses pay taxes to avoid penalty, not voluntarily because they perceive government services to be of value and fairly priced.
Sources of Revenues
Government budgets are expressions of public policy and often carry the authority of law, preventing public officials from spending outside their budgetary authority.
Role of the Budget
Governmental accounting focuses on the sustainability of services and the ability to meet future demand, rather than on the near-term recovery of amounts invested in assets.
Potential for Longevity
Determines what is measured
Measurement focus
Determines when something is measured
Basis of Accounting
Measures all economic resources, including capital assets and long-term debt.
Economic resources measurement focus
Measures primarily financial resources and does not recognize long-term assets and liabilities.
Current financial resources measurement
Recognizes revenues when earned and expenses when incurred.
Accrual basis of accounting
Recognizes revenues when measurable and available to finance expenditures of the current period.
Modified accrual basis of accounting
Expenses are recognized when goods or services are received.
Modified accrual basis of accounting
Expenses are recognized when goods or services are used. Expenses are matched with the revenues those expenses generate.
Accrual basis of accounting
Fixed assets are capitalized and depreciated.
Economic resources measurement focus and accrual accounting
Fixed assets are not capitalized or depreciated; rather fixed assets are charged to expenditures when received.
Current financial resources measurement and modified accrual accounting
Long-term debt is not recorded as a liability
Current financial resources measurement and modified accrual accounting
Long-term debt is recorded as a liability; repayments are recorded as a reduction of that liability.
Economic resources measurement focus and accrual accounting
A city government issued general obligation bonds to finance the construction of a new jail.
Capital Projects Fund
A tax of $1.00 per residential phone number is collected by a city government from the phone company. This amount is required by state law to be used for the operation of the 911 emergency phone system.
Special Revenue Fund
A county government expended $1 million to expand the water treatment plant.
Enterprise Fund
A donor provided investments totaling $4 million to create an endowment, the earnings of which will be used to provide scholarships.
Private-Purpose Trust Fund
A donor provided $50,000 to be used to purchase newspaper and magazine subscriptions for the public library. There is no requirement that the original principal may not be spent.
Special Revenue Fund
A city government sold surplus street maintenance trucks for $10,000.
General Fund
A city government contributed $500,000 to a pension plan administered by the city for its teachers, public safety employees, and employees of the water department.
General Fund, Enterprise Fund and Pension Trust Fund