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

When revenues are legally restricted by external resource providers or committed by enabling legislation for particular operating purposes,a private purpose trust fund is created.

The types of funds that may be used in governmental accounting are classified into the three categories of governmental,proprietary,and fiduciary.

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

Explain the nature of the three major activity categories of a state or local government: governmental activities,business-type activities,and fiduciary activities.Provide examples of each.

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

A major governmental fund is one that has one or more elements (e.g.,assets,liabilities,revenues,or expenditures)that is at least:

Which of the following funds are proprietary funds?

The following are categories of funds described in Chapter 2: A.Governmental funds B.Proprietary funds C.Fiduciary funds For each of the following descriptive phrases,indicate the type of fund from the list above that best matches by placing the appropriate letter in the blank space next to the phrase.

Governmental funds account for assets but not the liabilities.

A permanent endowment is an example of a nonspendable fund balance.

In accordance with GASB standards,a deferred inflow of resources is reported on the financial statements the same as an unearned revenue.

Because budgetary accounts are used by governments,government financial statements can never be said to be in accord with generally accepted accounting principles.

Capital assets used by departments accounted for by the General Fund of a governmental unit should be accounted for in

Governments can,in part,demonstrate operational accountability by reporting proprietary and fiduciary fund financial information,as well as all government-wide financial information,using an economic resources measurement focus and the accrual basis of accounting.

Assigned fund balances can be either positive or negative.

Which of the following would be reported as a nonspendable fund balance?

The maximum sets of fund financial statements a government would present are three.

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

Economic resources are cash or items expected to be converted into cash during the current period,or soon enough thereafter to pay current period liabilities.

A deferred inflow of resources is defined as "an acquisition of net assets by the government that is applicable to a future reporting period."