Chat with AIExam 2: Principles of Accounting and Financial Reporting for State and Local Governments
The GASB concept statements indicate that in certain instances a remeasured value for an asset or liability should be reported on the financial statements. Which of the following is not one of the methods recommended by the GASB for remeasured amounts?
(32) 
VerifiedB
Expenditures are never recorded in governmental funds.
(28) VerifiedFalse
Following are some of the county's governmental funds. The county has asked you to determine is any of the funds listed should be classified as major funds based on the GASB size criteria. Clearly indicate which fund(s)you believe should be classified as major and provide support for your choice(s).
(36) VerifiedGeneral Fund Special Debt Service Total of all Total of all
Revenue Fund Fund Governmental Governmental &
Funds Enterprise Funds
Assets 12,000,000 1,000,000 500,000 15,000,000 21,000,000
Liabilities 3,000,000 250,000 30,000 4,580,000 5,890,000
Revenues 10,000,000 600,000 1,450,000 13,770,000 17,123,000
Expenditures/
Expenses 9,859,000 725,000 1,300,000 13,460,000 16,665,000
Debt Service Fund - The size criteria states that a fund must be at least 10% of the total of all governmental funds for at least one of the elements (assets,liabilities,revenues,expenditures/expenses),and it must be at least 5% of the total of all governmental funds and enterprise funds for the same element. The debt service fund meets the size criteria for revenues since 10% of the total of all governmental funds is $1,377,000 and 5% of the total of all governmental and enterprise funds is $856,150,both of which the debt service fund exceeds.(The thresholds for the other three elements are: assets-10% is $1,500,000,5% is $1,050,000; liabilities-10% is $458,000,5% is $294,500; expenditures/expenses-10% is $1,346,000,5% is $833,250.)
General Fund - the General Fund is always classified as a major fund and it meets the size criteria for all of the elements.
Which of the following is regarding financial reporting for internal service funds?
(33) Under the modified accrual basis of accounting,revenues should be recognized when
(39) Deferred outflow of resources is a type of asset that is unique to government.
(36) Nonmajor funds are not reported on the fund financial statements.
(31) The measurement focus and basis of accounting that are most unlike those used by business entities are those used by
(39) Which of the following is not one of the seven elements defined by the GASB concept statements?
(37) The General Fund is the only fund that can have a positive unassigned fund balance.
(29) 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?
(47) Only those governmental and proprietary funds that meet the GASB size criteria for major funds are reported in separate columns of the governmental and proprietary fund financial statements.
(32) Governmental funds are identical to governmental activities,proprietary funds are identical to business-type activities,and fiduciary funds are identical to fiduciary activities of a government.
(27) The activities of a water utility department,which offers its services to the general public on a user charge basis,should be accounted for in
(49) Governmental activities are to be classified as governmental or business-type.
(42) Which of the following funds would be most appropriate when accounting for an activity that provides goods or services to the public for a fee that is intended to make the activity self-supporting?
(30) "The primary purpose of an accounting system for a state or a local government is to make it possible for financial statements to demonstrate compliance with finance-related legal and contractual provisions." Explain why you believe this statement to be correct or incorrect.
(39) A debt service fund is used to account for financial resources segregated for the purpose of making principal and interest payments on general long-term debt.
(38) The GASB concept statements indicate that an asset that is going to be converted to cash should be reported at a remeasured amount at the financial statement date.
(33) 
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