Ch 5 for Exam 2

Question 1

governmental fund expenditures are accounted for on a ___________

Answer 1

modified accrual basis on the fund statements

Question 2

exchange transaction accounted for on ________

Answer 2

full accrual basis

Question 3

a ____________ is generally recognized when an asset is acquired, whereas an __________ is generally recognized when an asset is consumes

Answer 3

expenditure; expense

Question 4

an expense is used ___________ acct

Answer 4

financial

Question 5

an expenditure is used in ___________ acct

Answer 5

governmenta;

Question 6

governmental fund accounting is heavily influence by ___________

Answer 6

governmental budgeting

Question 7

a government should recognize an expenditure when __________________________

Answer 7

asset is acquired

Question 8

when should claims and judgements be reported

Answer 8

when it cam be reasonably estimated/ measurable and the loss is probable

Question 9

when accounting for supplies in governmental funds there is a choice between _______ method and _________ method

Answer 9

consumption; purchases

Question 10

business funds must use ___________ method for accouting for supplies

Answer 10

consumption

Question 11

What method of acct for supplies does gov usually use

Answer 11

consumtption

Question 12

what is consumption methos

Answer 12

put supplies on BS and then recognize expenditure as consumed

Question 13

what is purchases method

Answer 13

record expenditure when supplies are purchases