Exam 11: Accounting for State and Local Governments Part 1

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

Which organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established?

What are the broad classifications of funds for a governmental entity such as a city?

What are the two proprietary fund types?

In governmental accounting, what term is used for a decrease in financial resources?

Kurt City makes a transfer of $120,000 from the General Fund to the Debt Service Fund.Required:Prepare the required journal entries and identify the funds in which they are recorded.

When a city holds pension monies for city employees, the monies should be recorded in

Which of the following is not a classification of non-exchange transactions?

What are the four fiduciary fund types?

Which of the following is a governmental fund?

Trapper City issued 30-year bonds for the purpose of building a new City Hall. The proceeds of the bonds are deposited in the General Fund. For the governmental fund financial statements, in what fund will Bonds Payable appear?

Governmental funds are

Under modified accrual accounting, when should revenues be recognized by a governmental-type fund?

What are the two sets of financial statements mandated by GASB for state and local governments? For each set, what are the names of the individual statements that must be produced?

The government has just voted to repair the parking garages to all government buildings and estimate the cost to be $750,000. The government discloses this decision by debiting which account?

Bay City received a federal grant to provide health care services to low income mothers and children. When should the revenues be recognized?

What are monetary transfers and how are they reported?

How do the balance sheet and statement of revenues, expenditures, and changes in fund balances of governmental funds differ from the financial statement presentation for the governmental activities in the government-wide statement of net assets and statement of activities?(1)Internal service funds are not included in the fund financial statements of governmental funds but could be reported in the governmental activities of government-wide financial statements.(2)The economic resources measurement basis is used for fund financial statements of governmental funds and the current financial resources measurement basis is used for governmental activities in the government-wide financial statements.(3)Modified accrual accounting is used for fund financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government-wide financial statements.(4)The financial statements of governmental funds for fund financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.

What assets would be included in the accounting records of a city's general fund?

What are the five fund balance categories established by GASB and why did GASB establish these categories?