Governmental Accounting Overview

Question 1

________ fund financial statements should be presented for governmental and proprietary funds to report additional and detailed information about the primary government.

Answer 1

separate

Question 2

_________ is the most difficult to report for a governmental entity

Answer 2

relevance

Question 3

________ are considered non-spendable

Answer 3

inventories

Question 4

_____ are “legal restrictions”

Answer 4

funds

Question 5

In accounting for public funds, both governments and not-for-profits seek to demonstrate their operational _______ for the entity taken as a whole and their fiscal ________ for specific funding

Answer 5

accountability (2)

Question 6

The Governmental Accounting Standards Board (GASB) is the governmental counterpart of the ______

Answer 6

FASB

Question 7

_______ establishes accounting principles and standards for not-for-profits

Answer 7

FASB

Question 8

_____ prescribes “government auditing standards”

Answer 8

GAO (government accountability office)

Question 9

3 generic fund types:

Answer 9

governmental; proprietary; fiduciary

Question 10

Government-wide presentations use _____ accrual accounting and _______ resources measurement focus

Answer 10

full; economic

Question 11

Government-wide presentations are like:

Answer 11

consolidated financial statements

Question 12

Major fund financial statements are like:

Answer 12

segment reporting

Question 13

Governmental funds use _______ accrual accounting and _______ financial resources measurement focus

Answer 13

modified; current

Question 14

5 governmental funds

Answer 14

GRaSPP
general fund
special revenue funds
debt service funds
capital projects funds
permanent fund

Question 15

Proprietary funds use ______ accrual accounting and ______ resources measurement focus

Answer 15

full; economic

Question 16

2 proprietary funds

Answer 16

SE
internal service funds
enterprise funds

Question 17

Fiduciary (trust) funds use ______ accrual accounting and _______ resources measurement focus

Answer 17

full; economic

Question 18

4 fiduciary funds

Answer 18

PAPI
pension trust funds
agency trust funds
private purpose trust funds
investment trust funds

Question 19

Under modified accrual (GRaSPP), revenue is recognized when _______ and _______

Answer 19

measurable; available

Question 20

Under modified accrual (GRaSPP), expenditures are generally recorded when the related fund liability is ______

Answer 20

incurred

Question 21

Full accrual (SE PAPI) is _______ to the accounting methods used in commercial enterprises

Answer 21

identical

Question 22

Under full accrual (SE PAPI), revenue is recognized when ________ and expenses are recognized when ________

Answer 22

earned; incurred

Question 23

Prepaid expenses and inventories are ________ fund balances

Answer 23

non-spendable

Question 24

Fund balance resources associated with assets restricted by external authorities

Answer 24

restricted

Question 25

assets obligated by a formal action of the government’s highest decision-making authority (resolutions, encumbered)

Answer 25

committed

Question 26

Fund balance resources associated with assets the government intends to obligate but has not formally committed

Answer 26

assigned

Question 27

Fund balance resources associated with spendable assets neither restricted, committed, or assigned

Answer 27

unassigned

Question 28

Only the ______ fund should have a positive unassigned fund balance

Answer 28

general

Question 29

Neumonic for classification of governmental fund balances (for GRaSPP)

Answer 29

NU CAR

non-spendable, unassigned, committed, assigned, restricted