8/9/16

Question 1

What are the 5 governmental fund types?

Answer 1

• General fund
• special Revenue fund
• debt Service funds, &
• capital Projects funds
• Permanent funds

Question 2

What is the purpose of presenting separate fund financial statements for its government and proprietary funds?

Answer 2

To report additional and detailed information about the primary government.

Question 3

Which characteristic of service efforts and accomplishments is the most difficult to report for a governmental entity?

Answer 3

Relevance.

Question 4

The primary emphasis in accounting and reporting for governmental funds is on:

Answer 4

Source, use, and balance of current financial resources.

Question 5

What is the most restrictive classification of governmental fund balances?

Answer 5

Committed. They are internally limited by formal action of the government’s highest level of decision-making authority.

Question 6

What is the purpose of a permanent fund?

Answer 6

To report resources that are legally restricted to the extent income, and not principal, may be used for purposes supporting the reporting government’s programs.

Question 7

What is the paramount objective of financial reporting by state and local governments?

Answer 7

Accountability.

Question 8

When establishing a new accounting system for a city, how many funds should be set up?

Answer 8

The minimum number of funds consistent with legal requirements and sound financial administration.