Chapter 1 Vocab

Question 1

Being obliged to explain one’s actions to justify what ones does; the requirement for government to answer to its citizenry- to justify the raising of public resources and expenditures of those resources

Answer 1

Accountability

Question 2

term in gasb standards to describe required government wide and fund financial statements

Answer 2

basic financial statements

Question 3

a government’s annual report that contains three sections- introductory, financial, and statistical. A CAFR provides financial infomration beyond general purpose external financial statemnets and conforms to guidance of gasb

Answer 3

Comprehensive annual financial report

Question 4

Donor sitpulations that specify use for a contributed asset that is more specific than broad limits resulting from the nature of the not for profit entity, the environment in which it operates, or the purposes specified in its articles of incorporation of bylaws

Answer 4

donor imposed restrictions

Question 5

The nine members standards setting body that recommends federal governmental accounting and financia reporting standards to the us comptroller general, secretary of treasury, and director of management and budget

Answer 5

FASAB

Question 6

the designated organization in the private sector for establishing standards of financial accounting and reporting since 1973

Answer 6

FASB

Question 7

Current period financial position and budgetary compliance reported in fund type financial statements of governments

Answer 7

fiscal accountability

Question 8

category of the basic financial statements that assist in assessing fiscal accountability.

Answer 8

Fund financial statements

Question 9

Governments that provide many categories of services to their residents, such as states, counties, municipalities, and
townships. Typical services include public safety, road maintenance, and health and welfare.

Answer 9

General purpose government

Question 10

The body of accounting and financial reporting standards, conventions, and practices that have authoritative support
from standards setting bodies such as the Governmental Accounting Standards Board and the Financial Accounting
Standards Board, or for which a degree of consensus exists among accounting professionals at a given point in time.
Generally accepted accounting principles are continually evolving as changes occur in the reporting environment.

Answer 10

GAAP

Question 11

Two statements prescribed by GASB standards designed to provide a highly aggregated overview of a government’s
net position and results of financial activities.

Answer 11

government wide financial statements

Question 12

The independent agency established under the Financial Accounting Foundation in 1984 as the official body
designated by the AICPA to set accounting and financial reporting standards for state and local governments.

Answer 12

Gasb

Question 13

A term coined by the Governmental Accounting Standards Board indicating the extent to which current period
revenues are adequate to pay for current period services.

Answer 13

interperiod equity

Question 14

Narrative information, in addition to the basic financial statements, in which management provides a brief, objective,
and easily readable analysis of the government’s financial performance for the year and its financial position at year
end. An MD&A is required for state and local governments and federal agencies.

Answer 14

Management discussion and analysis

Question 15

Under the modified accrual basis of accounting, required for use by governmental funds (q.v.), revenues are
recognized in the period in which they become available and measurable, and expenditures are recognized at the
time a liability is incurred pursuant to appropriation authority.

Answer 15

Modified accrual basis

Question 16

Information useful in assessing operating results and short and long term financial position and the cost of providing
services from an economic perspective reported in entity wide financial statements.

Answer 16

Operational accountability

Question 17

A report required to be prepared by major federal departments and agencies under the Office of Management and
Budget’s (OMB) Circular A 136. It includes an annual performance report (APR), annual financial statements, and a
variety of management reports on internal control and other accountability issues.

Answer 17

Performance and accountability report

Question 18

Information that is required by generally accepted accounting principles to be included with the audited annual
financial statements, usually directly following the notes to the general purpose external financial statements.

Answer 18

required suplemenary information

Question 19

A conceptualization of the resources consumed (inputs), tasks performed (outputs), goals attained (outcomes), and
the relationship among these items in providing services in selected areas (e.g., police protection, solid waste garbage
collection, and elementary and secondary education).

Answer 19

service efforts and accomplishments

Question 20

overnments that provide only a single function or a limited number of functions, such as independent school
districts and special districts. Formerly called limited purpose governments.

Answer 20

special purpose governments