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51 Cards in this Set
- Front
- Back
The purpose of the FASAB is to establish accounting standards for |
b) Federal government. |
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The Governmental Accounting Standards Board is the primary standard-setting body for: |
b) All state and local governments. |
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As used by the GASB, interperiod equity refers to which of the following? Financial reporting should: |
b) Provide information to determine whether current-year revenues were sufficient to payfor current-year services. |
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A primary characteristic that distinguishes governments from businesses is |
b) The importance of the budget in the governing process. |
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A primary characteristic that distinguishes not-for-profit entities from businesses is |
b) The importance of the budget in the governing process. |
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A fund is |
b) A separate fiscal and accounting entity. |
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Which of the following funds is a fiduciary fund? |
b) Agency fund. |
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Which of the following accounts would you leastexpect to see in a debt service fund? |
d) Outstanding balance of the debt being serviced. |
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Which of the following funds is a proprietary fund? |
a) Internal service fund. |
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Which of the following funds is a governmental fund? |
b) Debt service fund. |
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Which of the following activities conducted by acity-owned junior college should be accounted for in an agency fund? |
b) Receipt of revenues belonging to the student accounting club. |
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Which of the following sections is NOT required in the comprehensive annual financial report of a city? |
d) Historical section. |
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Which of the following funds is accounted for onthe modified accrual basis of accounting? |
a) General fund. |
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Which of thefollowing liabilities would NOT be found in the general fund balance sheet ofthe City of Marmaduke? |
d) Bonds payable, due in 5 years. |
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The focus of the government-wide statement of activities of the City of West Hills is on which of the following? |
d) Determining the net cost of functions. |
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The primary focus of the statement of activitiesof a not-for-profit organization is on determining the net increase/decrease in which of the following? |
d) Net assets of the entity taken as a whole. |
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Under the GASB Statement No. 34 reporting model (as amended by GASB Statement No. 63), the government-wide statement of net position will display which of the following? |
a) Assets, liabilities, and net position. |
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which fund type would all governments normally include in their fund financial statements? |
c) General fund |
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Which of the following is NOT included in the financial section of a comprehensive annual financial report? |
b) Letter of transmittal |
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Wigmore City receives a donation of $10 million from a wealthy citizen who stipulates that the funds be used to acquire and install park benches in the city's Veterans Park. The city should report the donation as an increase in |
d) Restricted fund balance |
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If an entity elects to focus on all economic resources, then it should adopt a modified accrual basis of accounting. |
False |
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The budgetary measurement focus of governments is determined by applicable state or local laws. |
True |
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Governmental activities tend to derive the majority of their revenues from exchange transactions. |
False |
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In accounting for property taxes, under the modified accrual basis, existing standards provide that, except in unusual circumstances, revenues should be recognized only if cash is expected to be collected within sixty days after year-end. |
True |
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Income taxes are classified as ad valorem taxes. |
False |
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Sales taxes are taxpayer assessed, that is, parties other than the beneficiary government determine the tax base. |
True |
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Revenues that cannot be classified as general revenues are by default considered program revenues. |
False |
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Taxes that are imposed on the reporting government’s citizens are considered general revenues, even if they are restricted to specific programs. |
True |
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Current financial resources include cash and receivables but not investments. |
False |
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Under the modified accrual basis, revenues are “available” if they are collected within the current period or are expected to be collected soon enough after the end of the period to be used to pay liabilities of the current period. |
True |
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As used in government accounting, expenditures are decreases in |
b) Net current financial resources. |
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The amount of pension expenditures that a government should recognize in its general fund financial statements during the current year is |
b) The amount paid plus the amount that will be paid with available expendable financial resources. |
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Other financing sources/uses would appear on which of the following statements? |
b) Statement of revenues, expenditures, and changes in fund balances. |
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Which of the following is not an accepted modification of the accrual basis concerning the recognition of expenditures in governmental funds? |
a) Vacations and sick leave should never be accrued. |
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Which of the following activities would be classified as a reciprocal inter fund activity? |
c) Purchase of supplies by the general fund from an internal service fund |
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Which of the following funds would use the accrual basis of accounting in preparing its fund financial statements? |
c) City Motor Pool Internal Service Fund. |
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Per GASB standards, governments do not report general capital assets or depreciation in governmental funds. |
True |
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Proceeds of debt intended to finance general capital assets should be reported in the fund financial statements as a fund liability. |
False |
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Use of the consumption method of accounting for inventory is not acceptable for the fund financial statements. |
Fasle |
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Prepaid expenses such as for insurance are classified as deferred outflows, rather than as assets. |
False |
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Use the following information to answerQuestions 1 & 2. Carl City received $200,000 to help maintain a local art museum that is owned and operated by a not-for-profit organization. During the year the city transferred net earnings of $20,000 to the appropriate entity/fund. |
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The $200,000 gift would be reported in a (an): |
b) Private-purpose trust fund. |
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The $20,000 transfer would be reported by thefund that made the transfer as a (an) |
c) Deduction from net position—benefits. |
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Under GASB 68, the government employer is required to report its net pension liability as the: |
d) Difference between actuarially determined total pension liability and the plan’s net position. |
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A defined contribution pension plan is one in which the employer agrees to do which of the following? |
a) To make payments to a specified pension plan with no guarantee of a specific pension amount to be paid to the employees. |
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In which of the following funds would the account “netpension obligation” be most likely to appear? |
b) Enterprise fund. |
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Lomond City receives a federal grant to assist in nutrition programs for its senior citizens. The city will select the contractors that will provide meals and approve the participants in the program. The proceeds of this grant should be accounted for in which of the following funds of the city? |
a) A governmental fund. |
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Financial assets reported by most investment trust funds of governments should be reported at |
c) Fair value on the date of the financial statements. |
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GASB standards of accounting for other post-employment benefits (OPEB) require that governments |
b) Report actuarially determined required contributions as OPEB expense, regardless of whether the government actually makes the contributions. |
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Which of the following activities of agovernment should be accounted for in a fiduciary fund? |
b) Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty. |
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Permanent funds are classified as |
a) Governmental funds. |