FAR 4

Question 1

What are the characteristics of a primary government?

Answer 1

1. It has a separately elected governing body.
2. It is legally separate.
3. It is fiscally independent of other state and local governments.

Question 2

True or false: Governments have cash and cash equivalents similar to public entities.

Answer 2

True

Question 3

Which type of fund does not record depreciation expense?

Answer 3

Governmental