Deck 24: Governmental Accounting: Basic Principles and the General Fund

Question 1

The organization that currently establishes governmental accounting standards is the ________________________________________.

Answer 1

Governmental Accounting Standards Board

Question 2

The predecessor organization to the GASB was the ____________________________.

Answer 2

National Council on Governmental Accounting

Question 3

The organization that publishes GAAFR is the _________________________________.

Answer 3

Governmental Finance Officers Association

Question 4

For "governmental" funds, the measurement focus (what to measure) is on _________________________________________ at the fund-based reporting level.

Question 5

In the broad sense, the use of financial resources of a fund is called a(n) ________ ________________________________.

Question 6

For governmental funds, the _______________________________________________ basis of accounting is to be used at the fund-based reporting level.

Question 7

For proprietary funds, the _______________________ basis of accounting is used, and the _________________________________ measurement focus is used.

Question 8

For fiduciary funds, the ________________________________ basis of accounting is used, and the __________________________________ measurement focus is used.

Question 9

Under the modified accrual basis of accounting, governmental revenues are recognized when they are ________________________________________.

Question 10

For "governmental" funds, an item is susceptible to accrual when it is both ____________________________________ and ____________________________________.

Question 11

Most governmental revenues arise from ____________________________ transactions.

Question 12

The four conceptual categories of governmental nonexchange transactions are ____________________________________, _______________________________________. ____________________________________, and ______________________________________.

Question 13

For governmental funds, the operating statement has a revenues category, an expenditures category, and a(n) _______________________________________________ category.

Question 14

The three categories of fund types are ________________________________________ funds, ___________________________ funds, and _________________________________ funds.

Question 15

The five types of "governmental" funds are ___________________________ Funds, __________________________ Funds, _______________________________ Funds, ____________________________ Funds, and ________________________ Funds.

Question 16

The two types of proprietary funds are ________________________________________ Funds and ________________________________________ Funds.

Question 17

The two types of fiduciary funds are ________________________________________ Funds and ________________________________________ Funds.

Question 18

The three types of trust funds that exist in governmental accounting are __________________________ funds, __________________________ funds, and __________________________ funds.

Question 19

Interfund activities can be broadly categorized as being either _________________________ or _________________________ in nature.

Question 20

The two subcategories of interfund activities that are reciprocal in nature are interfund _______________________________________ and interfund _________________________________________.

Question 21

The two subcategories of interfund activities that are not reciprocal in nature are interfund _______________________ and interfund ___________________________.

Question 22

An authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes is called a(n) ___________________________.

Question 23

A commitment made to acquire goods or services is referred to as a(n) ___________________________________ in governmental accounting.

Question 24

In the normal course of operations, encumbrances will eventually be recorded as _____________________________________.

Question 25

At the end of the fiscal year, encumbrances may or may not ______________________________________________.

Question 26

In the new year's budget for "governmental" funds, encumbrances outstanding at the end of the preceding year are usually ___________________________________.

Question 27

Governmental accounting standards are established by the Governmental Finance Officers Association.

Question 28

The Governmental Accounting Standards Board is sponsored by the Governmental Finance Officers Association.

Question 29

The Governmental Accounting Standards Board has equal status with the Financial Accounting Standards Board as to the authority of its pronouncements.

Question 30

GAAFR is not an authoritative pronouncement concerning GAAP.

Question 31

The measurement focus for governmental funds-at the fund based reporting level-is the flow of total financial resources and current claims against those resources.

Question 32

The measurement focus for governmental funds is the flow of current financial resources and current claims against those resources.

Question 33

Any general ledger account that is debited or credited for which the offsetting credit or debit increases or decreases the Fund Balance account, respectively, is part of the measurement focus for governmental funds.

Question 34

A liability for compensated absences that is created during the current period but that is not expected to be paid for several years would not result in the reporting of Expenditures in the current-period operating statement of the General Fund-at the fund-based reporting level.

Question 35

The operating statement for governmental funds is essentially a statement of cash flows.

Question 36

For governmental funds, capital maintenance is measured instead of net income.

Question 37

Under the modified accrual basis of accounting, expenditures are recognized when the liability is incurred-not when the fund liability is incurred.

Question 38

A major reason the modified accrual basis of accounting is used for "governmental" funds is that many expenditures are not susceptible to being accrued.

Question 39

Under the definition of the modified accrual basis of accounting, depreciation cannot be reported in the operating statements of "governmental" funds.

Question 40

Whether to depreciate capital assets has nothing to do with the modified accrual basis of accounting or the accrual basis of accounting.

Question 41

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which the taxpayer's liability to the government arises.

Question 42

Under the modified accrual basis of accounting, revenues are recognized only if they are reasonably estimable and probable as to occurrence.

Question 43

The modified accrual basis of accounting is not a departure from GAAP.

Question 44

All fiduciary funds use the cash basis of accounting.

Question 45

Capital Projects Funds are a type of governmental funds.

Question 46

Debt Service Funds are a type of fiduciary funds.

Question 47

Special Revenue Funds are a type of proprietary funds.

Question 48

Internal Service Funds are a type of governmental funds.

Question 49

Internal Service Funds are a type of enterprise funds.

Question 50

Permanent Funds are a type of proprietary funds.

Question 51

Agency Funds are a type of fiduciary funds.

Question 52

Trust Funds are a type of fiduciary funds.

Question 53

Pension Funds are a type of Agency Funds.

Question 54

Proprietary funds may be classified as being either reciprocal or nonreciprocal in nature.

Question 55

Private Purpose Trust Funds are a type of proprietary funds.

Question 56

The operating statement for proprietary funds closely resembles an income statement.

Question 57

Proprietary funds can have revenues only from entities or individuals outside the governmental unit.

Question 58

General capital assets are accounted for in the General Fund.

Question 59

Recording the annual budget in the general ledger for the General Fund is part of the modified accrual basis of accounting.

Question 60

Recording the annual budget in the general ledger for the General Fund does not affect the amount reported for the total Fund Balance at the end of the fiscal year.

Question 61

When the budget is recorded in the general ledger, the Appropriations account is credited.

Question 62

When the budget is recorded in the general ledger, the Estimated Revenues account is credited.

Question 63

When the budget is recorded in the general ledger, the Encumbrances account is debited.

Question 64

When the annual budget is recorded in the general ledger, the Appropriations-Transfers Out account, if used, is credited.

Question 65

When the entry recording the budget is reversed at year-end, the Appropriated Revenues account is credited.

Question 66

When the entry recording the budget is reversed at year-end, the Appropriations-Transfer Out account, if originally used, is debited.

Question 67

When the entry recording the budget is reversed at year-end, the Budgetary Fund Balance Reserved for Encumbrances account is debited.

Question 68

Under the GASB codification, encumbrances outstanding at the end of a given year are not reflected in the operating statement of that year.

Question 69

The authorization to spend a specified amount of money is referred to as an encumbrance.

Question 70

When an encumbrance outstanding at year-end lapses, it is necessary to reappropriate the item in the following year to honor the encumbrance.

Question 71

Encumbrances accounting is part of budgetary accounting.

Question 72

Commitments related to unperformed contracts for goods and services are called appropriations.

Question 73

The entry to remove the budgetary accounts relating to encumbrances outstanding at year-end requires a credit to the Estimated Encumbrances account.

Question 74

The entry to remove the budgetary accounts relating to encumbrances outstanding at year-end requires a credit to the Encumbrances account.

Question 75

The entry to reestablish budgetary control over encumbrances outstanding at the end of the prior year as a result of a reappropriation in the new year requires a debit to the Encumbrances account.

Question 76

In governmental financial reporting, legal provisions do not have precedence over GAAP.

Question 77

Under the GASB codification, a Statement of Cash Flows is not required for governmental funds.

Question 78

Interfund services provided and used are reported outside the operating statements of the affected funds.

Question 79

Interfund transfers are reported in the Statement of Revenues, Expenditures, and Changes in Fund Balance for governmental funds.

Question 80

Nonreciprocal interfund transfers are not reported in the Statement of Revenues, Expenditures, and Changes in Fund Balance for governmental funds.