Accounting Final

Front 1

Fund financial statementsmay require

full accrual or modified accrual accounting

depending on the type of fund.

Back 1

True

Front 2

Since Government Widestatements use

full accrual accounting, a cash flow statement

is required to beprepared.

Back 2

False

Front 3

The reconciliation of Governmental

Statement of RevenueExpenditures and

changes of Fund Balances to the Government Wide Statement ofActivities will subtract

depreciation expense not recorded on the

GovernmentalStatement.

Back 3

True

Front 4

The reconciliation ofGovernmental

Statement of Revenue Expenditures and

changes of Fund Balances tothe Government Wide Statement of Activities will add back

capital assetexpenditures recorded on the

Governmental Statement.

Back 4

True

Front 5

The Government Wide Statement of

Activities includesrevenues and expenses, arranged very similarly to a for-profit

business incomestatement.

Back 5

IDK

Front 6

The Government WideStatement of

Position includes long term debt, with

premium or discountamortized using the

effective interest method.

Back 6

True

Front 7

The Governmental FundsBalance Sheet

does not include any long term debt.

Back 7

True

Front 8

The accounting concept ofconservatism

determines which funds are considered

“major” or “non-major” onthe governmental funds balance sheet.

Back 8

False