Accy 407 Final Exam Top Exam Questions & Answers, Verified.

Accy 407 Final Exam Top Exam Questions & Answers, Verified. general purpose governments - -provide a broad array of services special purpose governments - -usually provide only one or just a few services (schools, hospitals) not-for-profit organizations - -legally separate organizations which are usually exempt from federal, state, and local taxation (private schools, religious groups) compared to business organizations - --receive resources from providers who do not expect repayment or proportionate economic benefit back -operating purpose not to generate a profit -absence of defined ownership interests governmental entities - --power rests in hands of the people through election of public officials -empowered by and accountable to a higher level government -taxation powers Governmental Accounting Standards Board (GASB) - -sets standards for state and local governmental units and governmental non-profits Federal Accounting Standards Advisory Board (FASAB) - -sets standards for federal government and its agencies/departments objectives of financial reporting for state and local governments - --compare actual financials with budgets -assess financial condition and operations -determine compliance with finance-related regulations -assist in evaluating efficiency and effectiveness accountability - -imposes a duty on public officials to be accountable to citizens for raising public funds and how they are spent (citizens' right to know) (means responsibility) interperiod equity - -are current year revenues sufficient to pay current year benefits or do future taxpayers need to pay for them? government-wide financial statements - --provide an aggregated overview of a government's net position and change in net position -assess operational accountability -focus on flow of economic resources -accrual basis fund financial statements - -provide more detailed financial information about the government operational accountability - -whether the government has used resources efficiently and effectively in meeting operating objectives fund - -a separate set of accounts used to account for resources segregated for a particular purpose governmental fund - -focus on short-term flow of current financial resources, fiscal accountability, modified accrual basis proprietary fund - -report on business-like activities of the government fiduciary fund - -report on trust and custodial activities of the government fiscal accountability - -whether the government raised and spent financial resources in accordance with budgetary, legal, and regulatory constraints modified accrual basis - -revenues recognized when measurable and available for spending and expenditures recognized when obligation is incurred that will be paid from currently available financial resources Comprehensive Annual Financial Report (CAFR) - -provides more detail than minimum requirements for general purpose financial reporting- conforms to GASB standards (introductory, financial, statistical) objectives of financial reporting for federal government - --accountability -FASAB standards are for both internal (executive branch) and external users (citizens) federal financial reporting - -occurs at government-wide level and for major agencies and departments consolidated report - -plain language citizen's guide management's discussion & analysis financial statements supplementary information on budgetary and proprietary activities **not audited Performance and Accountability Report (PAR) - -required by major federal agencies and departments objectives of financial reporting for non-profits - -to provide useful financial information to resource providers such as donors, members, and creditors (resource providers need this info to assess services provided by non-profit and management's stewardship of resources) not-for-profit financial reporting - -statement of financial position (balance sheet) statement of activities