Government Accounting_Final Exam

Summary objectives under new government accounting system

T/F questions 1) Government business type activities provide services to users for fees that are intended to recover all or a portion of the costs of providing the services. 2) General governmental activities provide goods and services to citizens without regard to their ability to pay. 3) Proprietary funds report revenues and expenses using a modified-accrual basis of accounting. 4) The governmental fund accounting equation is Current Assets - Current Liabilities = Fund Balance. 5) Enterprise funds are used to account for business-type activities that serve primarily internal customers.   27) A restricted fund balance represents amounts that can only be spent for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. 28) Government enter the annual budget in the journal by recording a debit to the appropriations account and a credit to estimated revenues. 29) Under accrual accounting, revenues are generally recognized in the…

Governments often provide goods and services to citizens or other governmental units at a fee.  These activities are accounted for in:   a. the general fund   b. governmental funds   c. proprietary funds   d. special revenue funds

4.Internal service fund activities are: A. not allowed to be reported as part of businessotype activities B. required to be reported as part of governmental activities Č. sometimes detailed int the management discussion and analysis D. sometimes reported in government activities and sometimes in business-type activities

The billings for transportation services provided to other governmental units are recorded by the internal service fund as? A. Intergovernmental transfers. B. Interfund exchanges. C. Charges for services. D. Transportation Appropriation explain

Which Statement is presented using the accrual basis of accounting? Multiple Choice A. Governmental Fund Balance Sheet B. Government-Wide Statement of Activities C. Statement of Revenues, Expenditure and changes in Fund Balances D. Both A and B choices are true.

Which of the following is an example of an interactivity transaction?a. Money is transferred from the general fund to the debt service fund.b. Money is transferred from the capital projects fund to the general fund.c. Money is transferred from the special revenue fund to the debt service fund.d. Money is transferred from the general fund to the enterprise fund.

Identify the following funding sources as primarily public or private.a. Municipal bondsb. Retained earningsc. Sales taxesd. Automobile license feese. Bank loansf. Savings accountsg. Engineer’s retirement planh. State fishing license revenuesi. Entrance fees to Disneylandj. State park entrance fees

The basic financial statements of a state or local government include all of the following except: a. A MD&A. b. Government-wide financial statements. c. Fund financial statements. d. Notes to the financial statements.

Distinguish between accounting and financial reporting for state and local governments and VHWOs for the following issues: 1. Measurement focus and basis of accounting 2. Revenue recognition 3. Depreciation expense 4. Capital assets

6   Which of the following is a primary objective of financial reporting by state and local governments?   Multiple Choice   To provide information that can be used for capital allocation decisions made by external investors.   To report on the legal requirements imposed on the government by its elected officials.   To provide information that can be used to assess a government's accountability.   To fulfill the government's statutory duty to report on cash received and cash disbursed.

KA  The following transactions take place:   • A commitment was made to transfer general revenues to the entity in charge of providing transportation for all government agencies.   • Construction bonds were issued at a premium. The premium is to be included in funds accumulated to retire the debt.   • Police salaries were paid.   • Interest and principal were paid on general obligation serial bonds.   Required: Indicate the name of the fund(s) in which each of the transactions or events should be recorded.

Assets and liabilities of activities for which the government is acting in either an agency or trustee capacity for individuals, organizations, or other governments should be reported in: a. The fiduciary column of the government-wide financial statements. O b. The fiduciary fund financial statements. c. Both government-wide and fiduciary fund statements. d. Neither government-wide nor fiduciary fund statements.

which concerns with revenue and disbursement of government such as central government , state government O finance private public finance O finance