Question 1

Level "A" GAAP for Cook County Hospital, a public hospital, would be established by the:

Accepted Answer

A)  Governmental Accounting Standards Board 
B)  Financial Accounting Standards Board 
C)  Hospital Financial Management Association 
D)  American Institute of Certified Public Accountants 
A)  Governmental Accounting Standards Board 
B)  Financial Accounting Standards Board 
C)  Hospital Financial Management Association 
D)  American Institute of Certified Public Accountants A

Question 2

Why did governmental accounting practices develop with a focus on the sources and uses of expendable funds rather than on net income?

Accepted Answer

A)  The government wants to keep the earnings discrete 
B)  Net income is solely for private organizations 
C)  Tax and other non exchange revenues are not equivalent to sales 
D)  Net income is solely for public organizations 
A)  The government wants to keep the earnings discrete 
B)  Net income is solely for private organizations 
C)  Tax and other non exchange revenues are not equivalent to sales 
D)  Net income is solely for public organizations C

Question 3

Which of the following are included in the GASB standards budgetary principle:

Accepted Answer

A)  Accounting systems should provide the basis for appropriate budgetary control 
B)  Annual budgets should be adopted by every governmental unit 
C)  Budgetary comparisons should be included in the appropriate financial statements 
D)  All of the above 
A)  Accounting systems should provide the basis for appropriate budgetary control 
B)  Annual budgets should be adopted by every governmental unit 
C)  Budgetary comparisons should be included in the appropriate financial statements 
D)  All of the above D

Question 4

Fund accounting exists primarily to provide assurance that resources are used according to legal or donor restrictions.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following characteristics would not define an organization as governmental?

Accepted Answer

A)  The power to enact and enforce a tax levy 
B)  The potential for unilateral dissolution by a government with the net assets reverting to a government 
C)  The receipt of grant money from a state or local government for the purpose of providing services to the public 
D)  All of the above 
A)  The power to enact and enforce a tax levy 
B)  The potential for unilateral dissolution by a government with the net assets reverting to a government 
C)  The receipt of grant money from a state or local government for the purpose of providing services to the public 
D)  All of the above

Question 6

Under modified accrual accounting, revenues are recognized when measurable and available to finance expenditures of the current period.

Accepted Answer

A) True 
 B)False

Question 7

The Governmental Accounting Standards Board has been given authority to establish accounting and financial reporting standards for:

Accepted Answer

A)  All governmental units and agencies 
B)  Federal, state and local governments 
C)  All governmental units and all not-for-profit organizations 
D)  State and local governmental entities and governmentally-owned utilities, authorities, hospitals and colleges and universities 
A)  All governmental units and agencies 
B)  Federal, state and local governments 
C)  All governmental units and all not-for-profit organizations 
D)  State and local governmental entities and governmentally-owned utilities, authorities, hospitals and colleges and universities

Question 8

Identify the accounting standard setting bodies for U.S. commercial, private not-for-profits, public not-for-profits, state and local governments and the federal government.

Accepted Answer

Commercial enterprises: The Financial Ac

Question 9

Common measurement focus and basis of measurement is an important feature of government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 10

What basis of accounting would the Enterprise Fund use?

Accepted Answer

A)  Accrual 
B)  Modified Accrual 
C)  Cash 
D)  Expended Accrual 
A)  Accrual 
B)  Modified Accrual 
C)  Cash 
D)  Expended Accrual

Question 11

Fund-basis statements are presented for three categories of government activities: general, proprietary and fiduciary.

Accepted Answer

A) True 
 B)False

Question 12

A city government collects local option sales taxes legally restricted to pay for the hiring of teachers for hearing impaired school children. Which fund should account for the receipt of the sales taxes?

Accepted Answer

A)  Special revenue fund 
B)  Capital projects fund 
C)  Private-purpose trust fund 
D)  General fund 
A)  Special revenue fund 
B)  Capital projects fund 
C)  Private-purpose trust fund 
D)  General fund

Question 13

Fiduciary funds include agency, pension trust, investment trust and private-purpose trust.

Accepted Answer

A) True 
 B)False

Question 14

General fixed assets of the government are reported both in the government-wide financial statements and the governmental fund financial statements.

Accepted Answer

A) True 
 B)False

Question 15

What are Enterprise funds used for?

Accepted Answer

A)  To account for pension and employee benefit funds for which the governmental unit is the trustee 
B)  To report resources that are legally restricted so only earnings, not principal, may be expended and for purposes to benefit the government and its citizenry 
C)  To account for most of the basic services provided by the governmental units 
D)  To account for resources provided primarily through the use of sales and service charges to parties external to the government 
A)  To account for pension and employee benefit funds for which the governmental unit is the trustee 
B)  To report resources that are legally restricted so only earnings, not principal, may be expended and for purposes to benefit the government and its citizenry 
C)  To account for most of the basic services provided by the governmental units 
D)  To account for resources provided primarily through the use of sales and service charges to parties external to the government

Question 16

According to GASB standards relating to Budgetary Accounting, budgetary comparisons should be included in the appropriate financial statements or schedules for governmental funds for which an annual budget has been adopted.

Accepted Answer

A) True 
 B)False

Question 17

According to GASB standards relating to Budgetary Accounting, the accounting system should provide the basis for appropriate budgetary control.

Accepted Answer

A) True 
 B)False

Question 18

Infrastructure may or may not be capitalized by state and local governmental units.

Accepted Answer

A) True 
 B)False

Question 19

The GASB Concept Statement on Service Efforts and Accomplishments Reporting encourages state and local governments to include inputs of nonmonetary resources in their financial reporting.

Accepted Answer

A) True 
 B)False

Question 20

Under GASB Statement 34, capital assets:

Accepted Answer

A)  Must be reported in government-wide statements but are not reported in any of the fund financial statements 
B)  Must be reported in government-wide statements and in proprietary fund financial statements 
C)  Are not to be reported in either government-wide or fund financial statements 
D)  Are to be reported but not depreciated in government-wide and fund financial statements 
A)  Must be reported in government-wide statements but are not reported in any of the fund financial statements 
B)  Must be reported in government-wide statements and in proprietary fund financial statements 
C)  Are not to be reported in either government-wide or fund financial statements 
D)  Are to be reported but not depreciated in government-wide and fund financial statements

Level "A" GAAP for Cook County Hospital, a public hospital, would be established by the:

Why did governmental accounting practices develop with a focus on the sources and uses of expendable funds rather than on net income?

Which of the following are included in the GASB standards budgetary principle:

Fund accounting exists primarily to provide assurance that resources are used according to legal or donor restrictions.

Which of the following characteristics would not define an organization as governmental?

Under modified accrual accounting, revenues are recognized when measurable and available to finance expenditures of the current period.

The Governmental Accounting Standards Board has been given authority to establish accounting and financial reporting standards for:

Identify the accounting standard setting bodies for U.S. commercial, private not-for-profits, public not-for-profits, state and local governments and the federal government.

Common measurement focus and basis of measurement is an important feature of government-wide financial statements.

What basis of accounting would the Enterprise Fund use?

Fund-basis statements are presented for three categories of government activities: general, proprietary and fiduciary.

A city government collects local option sales taxes legally restricted to pay for the hiring of teachers for hearing impaired school children. Which fund should account for the receipt of the sales taxes?

Fiduciary funds include agency, pension trust, investment trust and private-purpose trust.

General fixed assets of the government are reported both in the government-wide financial statements and the governmental fund financial statements.

What are Enterprise funds used for?

According to GASB standards relating to Budgetary Accounting, budgetary comparisons should be included in the appropriate financial statements or schedules for governmental funds for which an annual budget has been adopted.

According to GASB standards relating to Budgetary Accounting, the accounting system should provide the basis for appropriate budgetary control.

Infrastructure may or may not be capitalized by state and local governmental units.

The GASB Concept Statement on Service Efforts and Accomplishments Reporting encourages state and local governments to include inputs of nonmonetary resources in their financial reporting.

Under GASB Statement 34, capital assets:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trust Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Filters

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

Level "A" GAAP for Cook County Hospital, a public hospital, would be established by the:

Why did governmental accounting practices develop with a focus on the sources and uses of expendable funds rather than on net income?

Which of the following are included in the GASB standards budgetary principle:

Fund accounting exists primarily to provide assurance that resources are used according to legal or donor restrictions.

Which of the following characteristics would not define an organization as governmental?

Under modified accrual accounting, revenues are recognized when measurable and available to finance expenditures of the current period.

The Governmental Accounting Standards Board has been given authority to establish accounting and financial reporting standards for:

Identify the accounting standard setting bodies for U.S. commercial, private not-for-profits, public not-for-profits, state and local governments and the federal government.

Common measurement focus and basis of measurement is an important feature of government-wide financial statements.

What basis of accounting would the Enterprise Fund use?

Fund-basis statements are presented for three categories of government activities: general, proprietary and fiduciary.

A city government collects local option sales taxes legally restricted to pay for the hiring of teachers for hearing impaired school children. Which fund should account for the receipt of the sales taxes?

Fiduciary funds include agency, pension trust, investment trust and private-purpose trust.

General fixed assets of the government are reported both in the government-wide financial statements and the governmental fund financial statements.

What are Enterprise funds used for?

According to GASB standards relating to Budgetary Accounting, budgetary comparisons should be included in the appropriate financial statements or schedules for governmental funds for which an annual budget has been adopted.

According to GASB standards relating to Budgetary Accounting, the accounting system should provide the basis for appropriate budgetary control.

Infrastructure may or may not be capitalized by state and local governmental units.

The GASB Concept Statement on Service Efforts and Accomplishments Reporting encourages state and local governments to include inputs of nonmonetary resources in their financial reporting.

Under GASB Statement 34, capital assets:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trust Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Filters