ACC 291T PRINCIPLES OF
ACCOUNTING II WEEK 2
QUIZZES AND EXERCISES |
QUESTIONS AND ANSWERS | 2026
UPDATE | WITH COMPLETE
SOLUTIONS.
Select all that apply
Which of the following are required characteristics to make information useful in meeting
objectives identified by GASB in Concept Statement No. 1?
Multiple select question.
relevant
verifiable
comparable
understandable - answer- relevant
comparable
understandable
According to GASB Concepts Statement No. 1, governmental-type activities are
composed of ______.
Multiple select question.
general administrative support
general administrative services
core governmental services
core governmental support - answer- general administrative support
core governmental services
Which of the following are basic financial statements required by GASB?
Multiple select question.
fiduciary
proprietary
fund
government-wide - answer- fund
government-wide
,The objectives of governmental financial reports as identified by GASB Concepts
Statement No. 1 are to ______.
Multiple select question.
assist users in making economic, social, and political decisions
provide information to assess the profitability of a government
provide information to assess a government's accountability - answer- assist users in
making economic, social, and political decisions
provide information to assess a government's accountability
Government-wide statements present all financial information using the ______ basis of
accounting.
Multiple choice question.
accrual
modified cash
modified accrual
cash - answer- accrual
Net position equals ______.
Multiple choice question.
assets + deferred inflows of resources - liabilities - deferred outflows of resources
assets + deferred outflows of resources - liabilities - deferred inflows of resources
assets - liabilities
assets + Inflow of resources - liabilities - outflow of resources - answer- assets +
deferred outflows of resources - liabilities - deferred inflows of resources
In its more recent pronouncements, GASB refers to core governmental services,
together with general administrative support activities, as simply ______.
Multiple choice question.
public works
business-type activities
fiduciary activities
governmental activities - answer- governmental activities
In most cases only ______ funds are reported as business-type activities in the
government-wide financial statements.
Multiple choice question.
proprietary
governmental
enterprise
fiduciary - answer- enterprise
At a minimum, every state and local government should provide ______.
, Multiple select question.
basic financial statements
additional supplementary information
a management's discussion and analysis
consolidated financial statements
certain other required supplementary information - answer- basic financial statements
a management's discussion and analysis
certain other required supplementary information
The current standard-setting body for governmental accounting is ______.
Multiple choice question.
GASB
AICPA
FASB
NCGA - answer- GASB
The concept of a(n) _____ is fundamental to governmental accounting and reporting.
Multiple choice question.
agency
fund
journal
fiscal period - answer- fund
Government-wide financial statements present all information using the ______.
Multiple choice question.
fair value measurement focus
historical cost measurement focus
cash basis measurement focus
economic resources measurement focus - answer- economic resources measurement
focus
The governmental funds category includes which types of funds?
Multiple select question.
debt service
internal service
trust
permanent - answer- debt service
permanent
Although internal service funds are included in the ______ funds category, their
financial information usually is included as part of ______ activities in the government-
wide financial statements.
ACCOUNTING II WEEK 2
QUIZZES AND EXERCISES |
QUESTIONS AND ANSWERS | 2026
UPDATE | WITH COMPLETE
SOLUTIONS.
Select all that apply
Which of the following are required characteristics to make information useful in meeting
objectives identified by GASB in Concept Statement No. 1?
Multiple select question.
relevant
verifiable
comparable
understandable - answer- relevant
comparable
understandable
According to GASB Concepts Statement No. 1, governmental-type activities are
composed of ______.
Multiple select question.
general administrative support
general administrative services
core governmental services
core governmental support - answer- general administrative support
core governmental services
Which of the following are basic financial statements required by GASB?
Multiple select question.
fiduciary
proprietary
fund
government-wide - answer- fund
government-wide
,The objectives of governmental financial reports as identified by GASB Concepts
Statement No. 1 are to ______.
Multiple select question.
assist users in making economic, social, and political decisions
provide information to assess the profitability of a government
provide information to assess a government's accountability - answer- assist users in
making economic, social, and political decisions
provide information to assess a government's accountability
Government-wide statements present all financial information using the ______ basis of
accounting.
Multiple choice question.
accrual
modified cash
modified accrual
cash - answer- accrual
Net position equals ______.
Multiple choice question.
assets + deferred inflows of resources - liabilities - deferred outflows of resources
assets + deferred outflows of resources - liabilities - deferred inflows of resources
assets - liabilities
assets + Inflow of resources - liabilities - outflow of resources - answer- assets +
deferred outflows of resources - liabilities - deferred inflows of resources
In its more recent pronouncements, GASB refers to core governmental services,
together with general administrative support activities, as simply ______.
Multiple choice question.
public works
business-type activities
fiduciary activities
governmental activities - answer- governmental activities
In most cases only ______ funds are reported as business-type activities in the
government-wide financial statements.
Multiple choice question.
proprietary
governmental
enterprise
fiduciary - answer- enterprise
At a minimum, every state and local government should provide ______.
, Multiple select question.
basic financial statements
additional supplementary information
a management's discussion and analysis
consolidated financial statements
certain other required supplementary information - answer- basic financial statements
a management's discussion and analysis
certain other required supplementary information
The current standard-setting body for governmental accounting is ______.
Multiple choice question.
GASB
AICPA
FASB
NCGA - answer- GASB
The concept of a(n) _____ is fundamental to governmental accounting and reporting.
Multiple choice question.
agency
fund
journal
fiscal period - answer- fund
Government-wide financial statements present all information using the ______.
Multiple choice question.
fair value measurement focus
historical cost measurement focus
cash basis measurement focus
economic resources measurement focus - answer- economic resources measurement
focus
The governmental funds category includes which types of funds?
Multiple select question.
debt service
internal service
trust
permanent - answer- debt service
permanent
Although internal service funds are included in the ______ funds category, their
financial information usually is included as part of ______ activities in the government-
wide financial statements.
