Governmental Accounting

Question 1

GASB Statement No. 76 lists the sources of accounting principles in categories

Answer 1

GASB Statement No. 76 lists the sources of accounting principles in categories in descending order of authority as follows:

Category A: Officially established accounting principles; that is, GASB Statements and Interpretations.

Category B: GASB Technical Bulletins, GASB Implementation Guides, and literature of the AICPA cleared by the GASB.

Question 2

If the accounting treatment for an event is not specified by a pronouncement in Category A,

Answer 2

If the accounting treatment for an event is not specified by a pronouncement in Category A,

then the governmental entity should consider whether the accounting treatment is specified by a source in Category B.

Question 3

GASB Concepts Statements indicate that the objective of SEA () reporting is

Answer 3

GASB Concepts Statements indicate that the objective of SEA
(service efforts and accomplishments) reporting is to provide more complete information about a governmental entity’s performance than can be provided in traditional financial statements and schedules.

Question 4

SEA reporting is necessary for

Answer 4

Service efforts and accomplishments reporting is necessary for assessing accountability and making informed decisions

Question 5

The GASB Concepts Statements indicate that SEA reporting is BLANK but not BLANK.

Answer 5

The GASB Concepts Statements indicate that service efforts and accomplishments reporting is NECESSARY but not REQUIRED.

Question 6

Governmental fund revenues and expenditures should be recognized on

Answer 6

Governmental fund revenues and expenditures should be recognized on the modified accrual basis.

Question 7

Governmental funds include

Answer 7

Governmental funds include 
THE GENERAL FUND, 
SPECIAL REVENUE FUNDS, 
CAPITAL PROJECTS FUNDS, 
DEBT SERVICE FUNDS, and 
PERMANENT FUNDS.

Question 8

Proprietary fund revenues and expenses should be recognized on

Answer 8

Proprietary fund revenues and expenses should be recognized on THE ACCRUAL BASIS.

Question 9

Proprietary funds include

Answer 9

Proprietary funds include
enterprise funds and
internal service funds.

Question 10

Fiduciary fund additions and deductions should be recognized on

Answer 10

Fiduciary fund additions and deductions should be recognized on the accrual base.

Question 11

Per GASB Codification Section 1400, the general fund is not used to record

Answer 11

Per GASB Codification Section 1400, the general fund is not used to record fixed assets or depreciation.

Question 12

Fixed assets arising from expenditures by this governmental fund are displayed

Answer 12

Fixed assets arising from expenditures by this governmental fund are displayed only in the government-wide statements.

Question 13

Per GASB Codification Section 1400, the Capital Projects Fund is not used to record

Answer 13

Per GASB Codification Section 1400, the Capital Projects Fund is not used to record fixed assets or depreciation.

Question 14

The Capital Projects Fund is used for

Answer 14

The Capital Projects Fund is used for the accounting of the acquisition and use of resources for the purchase or construction of major, long-lived assets (except for those financed by the Internal Service or Enterprise Funds); while the asset acquired or constructed is displayed only in the government-wide statements.

Question 15

Governmental fund types (BLANK) use the BLANK and the BLANK.

Answer 15

Governmental fund types (general, special revenue, debt service, capital projects, and permanent trust) use the current financial resources measurement focus and the modified accrual basis of accounting.