29 Questions
Who were the forerunners of the FASB before it was formed in 1973?
The Accounting Principles Board and The Committee on Accounting Procedure
Which body is responsible for establishing Generally Accepted Accounting Principles (GAAP) for state and local governments?
GASB
Who are considered major external users of financial reports according to the text?
Taxpayers, donors, investors, bond-rating agencies, and grant-providing organizations
Who are classified as internal users of Government & Non-Profit entity accounting information?
Managers and employees
Which body is responsible for establishing Generally Accepted Accounting Principles (GAAP) for business organizations and nongovernmental not-for-profit organizations?
FASB
Which group of users of federal financial reports has the FASAB identified?
Citizens, Congress, executives, and program managers
Which section of the Comprehensive Annual Financial Report (CAFR) contains the basic financial statements?
Financial section
What is the main purpose of government-wide financial statements?
To present a comprehensive view of the government's financial position and results of operations
What does the Statement of Net Position in government-wide financial statements provide information about?
Government's assets, liabilities, and net position
What is included in the Statement of Activities in government-wide financial statements?
Revenues and expenses of the government entity
In what sections does the FASAB focus its standards according to the text?
Cost accounting, service efforts and accomplishment measures, and financial accounting and reporting
Which financial statement reports the assets, liabilities, and net position of fiduciary funds?
Statement of Fiduciary Net Position
What type of funds are used to account for resources held in a trustee or agency capacity?
Fiduciary Funds
What is the focus of Government fund statements?
Inflows and outflows of specific funds
Which financial statement reports the additions, deductions, investment income, and changes in net position of fiduciary funds?
Statement of Changes in Fiduciary Net Position
Which type of financial statements provide a broader perspective on the overall financial health and results of the government entity as a whole?
Government-wide Financial Statements
Why are long-term obligations and noncurrent assets not reported in governmental funds?
They do not contribute to the current budgetary period obligations
What is the main purpose of Fund Financial Statements in government accounting?
To track specific activities or resources within the government entity
Which type of funds in government accounting are used to account for activities related to general government operations?
Governmental funds
What do the fund financial statements for governmental funds include?
Statement of Revenues, Expenditures, and Changes in Fund Balances
Which type of funds in government accounting are used to account for activities similar to those of private businesses?
Enterprise funds
What does the Statement of Net Position in proprietary funds present?
Net position (equity) of the fund
Which statement shows the fund's assets, liabilities, and fund balance for governmental funds?
Balance Sheet
In the government-wide statement of net assets, where are both modified accrual basis revenues and expenses reported?
Governmental Activities column
According to the modified accrual basis of accounting, when are revenues recorded?
When measurable and available for paying current period obligations
How are expenditures generally recognized under the modified accrual basis of accounting?
When incurred
Why are expenses reported in the governmental fund statement of revenues, expenditures, and changes in fund balances, while expenditures are reported in business-type activities?
To better reflect the outflow of current financial resources
For which type of funds do proprietary fund financial statements present financial information?
Enterprise funds and internal service funds
Why do enterprise funds and internal service funds follow accounting and reporting practices similar to those of business organizations?
Because they operate as self-supporting entities
Test your knowledge on fund financial statements in government accounting, which focus on individual funds or categories of funds within the government entity. Learn about the main types of funds, such as governmental funds, used in government accounting practices.
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