Podcast
Questions and Answers
Fund accounting is primarily used by business organizations to manage their financial transactions.
Fund accounting is primarily used by business organizations to manage their financial transactions.
False
The GASB is responsible for setting accounting standards for governmental units.
The GASB is responsible for setting accounting standards for governmental units.
True
FASB establishes accounting standards for private colleges and universities.
FASB establishes accounting standards for private colleges and universities.
False
Each fund in fund accounting is a separate accounting entity.
Each fund in fund accounting is a separate accounting entity.
Signup and view all the answers
Profit-oriented enterprises apply GAAP established by GASB.
Profit-oriented enterprises apply GAAP established by GASB.
Signup and view all the answers
Nongovernmental units include labor unions and state hospitals.
Nongovernmental units include labor unions and state hospitals.
Signup and view all the answers
Individuals who contribute resources to nonbusiness organizations receive equity interests in the net assets of the organization.
Individuals who contribute resources to nonbusiness organizations receive equity interests in the net assets of the organization.
Signup and view all the answers
The value of services provided by nonbusiness organizations is directly proportional to the voluntary contributions made by individuals.
The value of services provided by nonbusiness organizations is directly proportional to the voluntary contributions made by individuals.
Signup and view all the answers
The Net Income concept is a suitable measure for evaluating the management effectiveness of resources dedicated to nonbusiness objectives.
The Net Income concept is a suitable measure for evaluating the management effectiveness of resources dedicated to nonbusiness objectives.
Signup and view all the answers
Nonbusiness organizations apply the income determination model of accounting to assess their performance.
Nonbusiness organizations apply the income determination model of accounting to assess their performance.
Signup and view all the answers
Individuals contributing to nonbusiness organizations benefit equally from the services provided by these organizations.
Individuals contributing to nonbusiness organizations benefit equally from the services provided by these organizations.
Signup and view all the answers
Revenues and expenses should be matched in fund accounting.
Revenues and expenses should be matched in fund accounting.
Signup and view all the answers
Expenditures should be classified by source in fund accounting.
Expenditures should be classified by source in fund accounting.
Signup and view all the answers
Transfers from other funds should be treated the same way as revenues in fund accounting.
Transfers from other funds should be treated the same way as revenues in fund accounting.
Signup and view all the answers
The term 'expense' is commonly used in fund accounting according to GAAP.
The term 'expense' is commonly used in fund accounting according to GAAP.
Signup and view all the answers
Decreases in financial resources outflows include proceeds from debt issuance.
Decreases in financial resources outflows include proceeds from debt issuance.
Signup and view all the answers
The measurement focus of expendable fund entities is on matching revenues with expenses.
The measurement focus of expendable fund entities is on matching revenues with expenses.
Signup and view all the answers
The financial statements for expendable fund entities include a profit and loss statement.
The financial statements for expendable fund entities include a profit and loss statement.
Signup and view all the answers
The fund balance in an expendable fund entity represents the net financial resources available for any purpose.
The fund balance in an expendable fund entity represents the net financial resources available for any purpose.
Signup and view all the answers
The financial position statement (balance sheet) of an expendable fund entity includes current and noncurrent assets and liabilities.
The financial position statement (balance sheet) of an expendable fund entity includes current and noncurrent assets and liabilities.
Signup and view all the answers
The operating statement of an expendable fund entity focuses on revenue, expenses, and net income.
The operating statement of an expendable fund entity focuses on revenue, expenses, and net income.
Signup and view all the answers
Fund balance is calculated as assets plus liabilities.
Fund balance is calculated as assets plus liabilities.
Signup and view all the answers
The relevant measures of operations for expendable fund entities are increases in fund resources, decreases in fund resources, and net income.
The relevant measures of operations for expendable fund entities are increases in fund resources, decreases in fund resources, and net income.
Signup and view all the answers
The primary objective of accounting for expendable fund entities is to measure the extent to which management has complied with the regulations governing the use of expendable fund resources, and to assist management with such compliance.
The primary objective of accounting for expendable fund entities is to measure the extent to which management has complied with the regulations governing the use of expendable fund resources, and to assist management with such compliance.
Signup and view all the answers
Proprietary fund entities are used to account for the activities of business organizations.
Proprietary fund entities are used to account for the activities of business organizations.
Signup and view all the answers
The accounting measurements and reports for proprietary fund entities focus on determining net income, financial position, and cash flows.
The accounting measurements and reports for proprietary fund entities focus on determining net income, financial position, and cash flows.
Signup and view all the answers
Fiduciary fund entities always involve the government acting as a trustee for an individual or organization.
Fiduciary fund entities always involve the government acting as a trustee for an individual or organization.
Signup and view all the answers
Nongovernmental units like labor unions are commonly included under fiduciary fund entities.
Nongovernmental units like labor unions are commonly included under fiduciary fund entities.
Signup and view all the answers
