Governmental Accounting Overview

Question 1

What are the dual objectives of governmental and not-for-profit accounting?

Answer 1

1) Operational Accountability (financial statements)

2) Fiscal Accountability (making sure the money given to dept was used for that reason)

Question 2

What are the three objectives of Financial Statements?

Answer 2

1) Timeliness
2) Consistency
3) Comparability

• Relevance is hard to show

Question 3

What are funds?

Answer 3

Legal Restrictions.

Question 4

Which accounting standards board does governmental, not-for-profit, and auditing use

Answer 4

Governmental - GASB

Not-For-Profit - FASB

Single Audit Act - GAO

Question 5

What is the definition of a fund?

Answer 5

A fund is a sum of money or other resource segregated for the purpose of carrying on a specific activity or attaining certain objectives in accordance with specific regulations, restrictions, or limitations, constituting an independent fiscal and accounting entity.

• Like a checkbook

Question 6

What are the three generic categories that GASB 34 defines as a fund structure for governments?

Answer 6

1) Governmental Funds
2) Proprietary Funds
3) Fiduciary Funds

Question 7

How are fund financial statements reported?

Answer 7

Fund financial statements should be presented separately for governmental, proprietary, and fiduciary funds to report additional and detailed information about the primary government.

Question 8

What is the government-wide presentation?

Like consolidated F/S

Answer 8

1) Full accrual accounting

2) Economic resources measurement focus