Question 1

The government-wide statements and the fund statements for proprietary funds and fiduciary funds use the economic resources measurement focus and the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 2

The Governmental Accounting Standards Board sets financial reporting standards for all units of government: federal, state and local.

Accepted Answer

A) True 
 B)False

Question 3

The Financial Accounting Standards Board (FASB)  is the standard setting organization for which of the following reporting organizations?

Accepted Answer

A)   Private not-for-profits
B)   Public not-for-profits
C)   Investor owned businesses
D)   A and C are both correct

Question 4

Depreciation on capital assets is included as an expense in the Statement of Activities in the government-wide financial statements

Accepted Answer

A) True 
 B)False

Question 5

Under the modified accrual basis of accounting, revenues should be recognized when they are:

Accepted Answer

A)   Authorized by the budget ordinance
B)   Earned and measurable
C)   Measurable and available to finance expenditures of the current period
D)   Realized through collection

Question 6

Which of the following are the governmental funds?

Accepted Answer

A)   General, special revenue, debt service, capital projects, permanent
B)   General, special revenue, debt service, capital projects, private purpose
C)   General, special revenue, debt service, capital projects, internal service
D)   None of the above

Question 7

What are the five environmental factors relating to how governments are different from commercial businesses as described by GASB in a white paper published entitled: Why Governmental Accounting and Financial Reporting Is - and Should Be - Different:

Accepted Answer

The five environmental differences are:
...

Question 8

The GASB recently published a white paper which identifies five environmental differences between governments and for-profit enterprises.

Accepted Answer

A) True 
 B)False

Question 9

Governmental funds do not include:

Accepted Answer

A)   Special revenue funds
B)   Internal service funds
C)   Debt service funds
D)   The General fund

Question 10

The fund statements for governmental funds are presented using the

Accepted Answer

A)   Economic Resources Measurement focus and the Accrual Basis of Accounting
B)   Current Financial Resources Measurement focus and the Modified Accrual Basis of Accounting
C)   Current Financial Resources Measurement focus and the Accrual Basis of Accounting
D)   Economic Resources Measurement focus and the Modified Accrual Basis of Accounting

Question 11

Internal Service funds are treated as governmental funds when the only "buyer" is a governmental unit.

Accepted Answer

A) True 
 B)False

Question 12

A permanent fund classified under governmental funds.....

Accepted Answer

A)   Accounts for most of the basic services provided by the governmental unit
B)   Accounts for financial resources intended for major capital projects
C)   Accounts for services provided by one department of a government to another
D)   Accounts for resources that are legally restricted so only earnings, not principal, may be expended and for purposes to benefit the government and its citizenry

Question 13

What type of fund is used when resources are provided mainly through business like transactions to parties external to the government?

Accepted Answer

A)   Internal Service Funds
B)   Capital Projects Funds
C)   Agency Funds
D)   Enterprise Funds

Question 14

The Federal Accounting Standards Advisory Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following organizations has authority to establish accounting and financial reporting standards for the federal government?

Accepted Answer

A)   Federal Accounting Standards Advisory Board
B)   Office of Management and Budget
C)   Governmental Accounting Standards Board
D)   None of the above; no one has been granted authority to set standards for the federal government

Question 16

Identify the three basic fund categories, the funds that make up each of them and the category's basis of accounting.

Accepted Answer

1. Governmental - Funds include permanen...

Question 17

Which of the following is not true regarding GASB Concepts Statement No. 2, Service Efforts and Accomplishments Reporting:

Accepted Answer

A)   It encourages governments to experiment with reporting more complete information about an entity's performance than can be displayed in the traditional financial statements
B)   It outlines categories of information that might be reported
C)   It prescribes detailed standards governing the reporting of service efforts and accomplishments reporting
D)   None of the above, all are true

Question 18

Which of the following is an objective of federal financial reporting?

Accepted Answer

A)   Budgetary Integrity
B)   Operating Performance
C)   Stewardship
D)   All of the above

Question 19

Which of the following funds is NOT a Fiduciary Fund?

Accepted Answer

A)   Private Purpose Trust Fund
B)   Special Revenue Fund
C)   Pension Fund
D)   Investment Trust Fund

Question 20

Under GASB Statement 34, accrual accounting is used for:

Accepted Answer

A)   Government-wide financial statements only
B)   Government-wide financial statements and proprietary fund financial statements only
C)   Government-wide, proprietary fund and fiduciary fund financial statements only
D)   Government-wide and all fund financial statements

Exam 2: Overview of Financial Reporting for State and Local Governments

Identify the three basic fund categories, the funds that make up each of them and the category's basis of accounting.

Correct Answerverified1. Governmental - Funds include permanen...View AnswerShow Answer

The Financial Accounting Standards Board (FASB) is the standard setting organization for which of the following reporting organizations?

Correct AnswerverifiedShow Answer

Under GASB Statement 34, accrual accounting is used for:

Correct AnswerverifiedShow Answer

Internal Service funds are treated as governmental funds when the only "buyer" is a governmental unit.

Correct AnswerverifiedShow Answer

Which of the following funds is NOT a Fiduciary Fund?

Correct AnswerverifiedShow Answer

The fund statements for governmental funds are presented using the

Correct AnswerverifiedShow Answer

Under the modified accrual basis of accounting, revenues should be recognized when they are:

Correct AnswerverifiedShow Answer

Which of the following is an objective of federal financial reporting?

Correct AnswerverifiedShow Answer

Which of the following is not true regarding GASB Concepts Statement No. 2, Service Efforts and Accomplishments Reporting:

Correct AnswerverifiedShow Answer

The Federal Accounting Standards Advisory Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation.

Correct AnswerverifiedShow Answer

What type of fund is used when resources are provided mainly through business like transactions to parties external to the government?

Correct AnswerverifiedShow Answer

What are the five environmental factors relating to how governments are different from commercial businesses as described by GASB in a white paper published entitled: Why Governmental Accounting and Financial Reporting Is - and Should Be - Different:

Correct AnswerverifiedThe five environmental differences are:...View AnswerShow Answer

A permanent fund classified under governmental funds.....

Correct AnswerverifiedShow Answer

The GASB recently published a white paper which identifies five environmental differences between governments and for-profit enterprises.

Correct AnswerverifiedShow Answer

The government-wide statements and the fund statements for proprietary funds and fiduciary funds use the economic resources measurement focus and the accrual basis of accounting.

Correct AnswerverifiedShow Answer

Which of the following are the governmental funds?

Correct AnswerverifiedShow Answer

Depreciation on capital assets is included as an expense in the Statement of Activities in the government-wide financial statements

Correct AnswerverifiedShow Answer

The Governmental Accounting Standards Board sets financial reporting standards for all units of government: federal, state and local.

Correct AnswerverifiedShow Answer

Governmental funds do not include:

Correct AnswerverifiedShow Answer

Which of the following organizations has authority to establish accounting and financial reporting standards for the federal government?

Correct AnswerverifiedShow Answer

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1. Governmental - Funds include permanen...
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The five environmental differences are:
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