ACCY 407 Chapter 9, Top Exam questions and answers. Rated A+

ACCY 407 Chapter 9, Top Exam questions and answers. Rated A+ Two primary objectives of government financial reports - -To provide information that can be used to assess accountability -To assist users in making economic, social, and political decisions Characteristics of useful information are: _______ - understandability reliability relevance timeliness consistency comparability Communicating the information in a manner that is helpful to the user is an important part of making ____________ - information useful. GASB Concepts Statement 3 provides guidance on _________ - where and how to present information for it to be useful Per CON 3 the areas are_____ - recognition in the financial statements, disclosures in the notes to the financial statements, presentation as required supplementary information, or presentation as supplementary information Recognition and Disclosure - An item of information that meets the definition of an element and is measurable with sufficient reliability should be recognized in the financial statements. Elements defined by GASB (GASB CON 4) - Assets Liabilities Deferred outflows of resources Outflows of resources Deferred inflows of resources Inflows of resources Net position Net position calculation - Assets + deferred outflows -liabilities -deferred inflows = Net Position A note should be used to ________________ - support an item recognized in a financial statement or provide information that is essential to the user's understanding of the item. Required supplementary information is used to provide information that is _____________ - essential. RSI is to place financial statements and related notes in the ___________ - correct context. Examples of RSI include ________ - the management discussion and analysis, budget to actual schedules and several pension disclosures. Other supplementary information is used to provide information that is ______________ - useful. OSI provides useful but not ___________ - essential in understanding the financial statements and related notes. Much of OSI is found in __________ - statistical section of the comprehensive annual financial report (CAFR) The reporting entity consists of the primary government and __________ - all component units for which the primary government is financially accountable Primary government is a ____________ - state government or general purpose local government Component unit is a ________ - legally separate organization for which the elected officials of the primary government are financially accountable Component units are reported by ________ - discrete (separate column) presentation, or by blending the component unit's financial information with the appropriate fund columns of the primary government PG is financially accountable