Exam 2: Principles of Accounting and Financial Reporting for State and Local Governments

Which of the following funds would be used to account for an activity that provides centralized purchasing and sales of goods or services to other departments or agencies of the governmental,or to other governments,on a cost-reimbursement basis?

The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when

Governmental funds are further classified as governmental or business-type.

Which of the following funds are proprietary funds?

Capital assets used by an enterprise fund should be accounted for in the

Which of the following must be reported as a major fund?

The governmental funds category includes the General Fund,special revenue funds,debt service funds,capital projects funds,and internal service funds.

Which of the following is not a characteristic of a fund as defined by GASB standards?

Generally accepted accounting principles applicable to state and local governments require that

List the seven fund financial statements that are required as part of the basic financial statements by GASB standards.What measurement focus and basis of accounting should be used in preparing each of these statements?