Exam 1: Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Which of the following is a Category A source of authoritative GAAP for state and local governments?

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.

A permanent fund classified under governmental funds…

The FASB has the authority to establish accounting and financial reporting standards for:

Long-term debt to be paid from proprietary funds is reported as a liability in

Businesslike activities fund statements must be changed to the accrual basis from the modified accrual basis when preparing government-wide financial statements.

Depreciation on capital assets is included as an expense in the Statement of Revenues, Expenses, and Changes in Fund Net Position in the proprietary fund financial statements

The _______ sets the accounting and financial reporting standards for both state and local governments and public not-for-profits.

The ___________ is the government's official annual report prepared and published as a matter of public record.

Which of the following best describes how many funds a government should use?

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

A city government sells police cars no longer in use. No restrictions have been placed on the proceeds. Which fund should account for the receipt?

The fund basis statements for governmental funds are presented using the

Fiduciary funds of a governmental unit use the current financial resources measurement focus and modified accrual basis of accounting

Which of the following fund types uses modified accrual accounting?

Governmental funds do not include:

Which of the following is a governmental fund?

For most state and local governments, the budget, when adopted according to procedures specified by state laws, is not binding upon the administrators of a governmental unit.

Permanent funds can be either a governmental fund or a fiduciary fund where only income on donated assets may be spent.

Which of the following is correct regarding fund classifications?