Federal Financial Report Users and FASAB Standards

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Who were the forerunners of the FASB formed in 1973?

The Accounting Principles Board (1959—73) and The Committee on Accounting Procedure (1938—59) of the American Institute of Certified Public Accountants.

Which bodies are responsible for establishing Generally Accepted Accounting Principles (GAAP) for state and local governments, the federal government, and business organizations?

GASB, the FASAB, and the FASB.

Who are the major external users of financial reports for government and not-for-profit entities?

Resource providers (taxpayers, donors, potential donors, investors, potential investors, bond-rating agencies, and grant-providing organizations).

Which groups make up the internal users of financial information in entities?

Managers and employees. Signup and view all the answers

What do the acronyms GASB, FASAB, and FASB stand for?

Governmental Accounting Standards Board, Federal Accounting Standards Advisory Board, Financial Accounting Standards Board. Signup and view all the answers

What is one similarity between Government & Not for Profit entities and Business entities?

Both need resources to operate Signup and view all the answers

What is one key difference between Government & Not for Profit entities and Business entities?

Organizational objective Signup and view all the answers

Which body sets standards for state and local governments, including governmental not-for-profit organizations?

GASB Signup and view all the answers

What is the role of the Federal Accounting Standards Advisory Board (FASAB)?

Recommend accounting principles and standards for the federal government and its agencies Signup and view all the answers

What are the forerunners of the GASB, formed in 1984?

The National Council on Governmental Accounting, The National Committee on Governmental Accounting, The National Committee on Municipal Accounting Signup and view all the answers

What term is used to describe the GASB and the FASB in relation to standard-setting?

Independent standards-setting boards in the private sector Signup and view all the answers

What are the four major groups of users of federal financial reports identified by FASAB?

Citizens, Congress, executives, and program managers Signup and view all the answers

What do the Government-wide Financial Statements provide an overview of?

The entire government entity as a whole Signup and view all the answers

What is the purpose of Government-wide Financial Statements?

To present a comprehensive view of the government's financial position and results of operations Signup and view all the answers

What information does the Statement of Net Position provide?

Information about the government's assets, liabilities, and net position (equity) Signup and view all the answers

What does the Statement of Activities present?

Revenues and expenses of the government entity, including both operating and non-operating activities Signup and view all the answers

What is the purpose of the Financial section of the Comprehensive Annual Financial Report (CAFR)?

To report the basic financial statements Signup and view all the answers

What is the basis of accounting that has evolved for governmental funds?

Modified accrual Signup and view all the answers

When are revenues recorded under the modified accrual basis?

If they are measurable and available for paying current period obligations Signup and view all the answers

When are expenditures generally recognized under the modified accrual basis?

When incurred Signup and view all the answers

Why are expenditures reported in the governmental fund statement of revenues, expenditures, and changes in fund balances?

Outlays to acquire goods or services are more relevant than expenses in measuring the outflow of current financial resources Signup and view all the answers

At the government-wide level, what is more relevant in measuring the cost of services provided?

Expenses Signup and view all the answers

What do proprietary fund financial statements present financial information for?

Enterprise funds and internal service funds Signup and view all the answers

What do Fiduciary Funds account for?

Resources held by the government in a trustee or agency capacity Signup and view all the answers

What does the Statement of Fiduciary Net Position show?

Assets, liabilities, and net position (equity) of the fund Signup and view all the answers

Why are Government fund statements important?

They focus on the flow of current financial resources available for expenditure Signup and view all the answers

What is the purpose of Fund financial statements?

To provide detailed information about inflows and outflows of specific funds Signup and view all the answers

What is the focus of Government-wide financial statements?

Overall financial health and results of the government entity Signup and view all the answers

Why are long-term obligations and noncurrent assets not reported in governmental funds?

They do not have to be paid in the current budgetary period Signup and view all the answers