Governmental Accounting Overview

Question 1

What are the 3 objectives of governmental reporting?

Answer 1

• Timeliness
• Consistency
• Comparability

Question 2

What are objectives of fund accounting and reporting?

Answer 2

• Financial control
• Legal restrictions

Also:
- Spending purposes (fund/legal restrictions)
- Spending limit (budgets & financial controls)
- Other fiscal accountability objectives

Question 3

What are the characteristics of information in governmental financial reports?

Answer 3

U R MICE
- understandability
- Reliability
- Make a difference - Relevance
- In timeliness
- Consistency year over year
- Entity to entity - Comparability

Question 4

What is the primary authoritative body for determining the measurement focus and basis of accounting standards for governmental fund?

Answer 4

the governmental accounting standard boards (GASB)

Question 5

what are the 3 primary external user groups

Answer 5

• citizens of the jurisdiction
• individuals and groups charged with oversight (executives, legislative bodies)
• investors and creditors

Question 6

what is the paramount objective of governmental org?

Answer 6

Accountability

Question 7

which characteristic is the most difficult to report for a governmental entity?

Answer 7

Relevance: information must bear a logical relationship for the needs to its purpose. the achievement of this is more difficult than establishment

Question 8

what is interperiod equity?

Answer 8

It helps users assess whether CY revenues are sufficient to pay for the services provided that year and whether future taxpayers will be assume burdens for services previously provided