Ch 4 for Exam 2

Question 1

whether current-year revenues were sufficient to pay for current-year services

Answer 1

interperiod equity

Question 2

government-wide statements consolidate all funds on a __________

Answer 2

full accrual

Question 3

fund statements present governmental funds on a ____________

Answer 3

modified accrual basis

Question 4

modified accrual basis is more _________ than full-accrual

Answer 4

budget-oriented

Question 5

in modified accrual basis, inventories and prepaid items are reported on the __________________

Answer 5

balance sheet

Question 6

modified accrual basis excluded _____________

Answer 6

Long-term obligations

Question 7

what is the statement from GAAP for revenue recognition

Answer 7

GASB Stmt No. 33

Question 8

under modified accrual basis, revenue cannot be recognized until they are ___________ and ______________ to finance expenditures of fiscal period

Answer 8

measurable and available

Question 9

what is the 60 day rule

Answer 9

funds must be available within 60 days

Question 10

what does available mean in the context of modified accrual

Answer 10

means “collected within the current period or “expected to be collected soon enough thereafter to be used to pay liabilities of the current period

Question 11

_________ an external event in which a government gives/ receives value without directly receiving/ giving equal value in exchange

Answer 11

nonexchange transactions

Question 12

for nonexchange transactions revenue recognition depends on _____________

Answer 12

time requirements

Question 13

ad valorem taxes

Answer 13

based on the value of something

Question 14

what are examples of exemptions from ad valorem property taxes

Answer 14

other government and religious institution buildings

Question 15

true or false: few governments are able to close their books and prepare financial statements within 60 days of year-end

Answer 15

TRUE

Question 16

sales taxes are __________________

Answer 16

taxpayer assessed

Question 17

income taxes are derives from ______________________________

Answer 17

transactions that produce the income

Question 18

on what basis is revenue recognized on?

Answer 18

cash basis

Question 19

what are tax abatements

Answer 19

reductions in taxes that result from and agreement between a government and a taxpayer

Question 20

tax abatements must be ___________

Answer 20

disclosed in footnotes of FS

Question 21

capital assets held for sale are the equivalent of

Answer 21

marketable securities