D250 (100% Correct Answers)

Who does the GASB set accounting and financial reporting standards for? correct answers State and local government entities and governmentally related units and agencies Why is the traditional business model of accounting inadequate for governments and nonprofit organizations (NPOs)? correct answers Governments and NPOs have different missions than businesses do. Which fiscal practice promotes the concept of interperiod equity? correct answers Paying the current-year costs of an administrative staff out of current operating funds Which accounting equation represents a governmental organization? correct answers Fund balance = assets + deferred outflows − liabilities − deferred inflows Which term describes the government and not-for-profit equivalent of the term owners' equity? correct answers Fund Balance Which functions should be accounted for in an internal service fund? correct answers A motor pool that acts as an intragovernment rental car agency Which basis of accounting determines what assets and liabilities will be given accounting recognition and be reported on the balance sheet? correct answers Measurement focus Which activity is an example of a custodial fund? correct answers Taxes collected by one government for the benefit of another What does the economic resources measurement for full accrual basis do? correct answers It reports only on the balances and flows of current and noncurrent assets and liabilities. Why should governments separate resources into funds? correct answers To adhere to restrictions placed on them by various external parties How should a local government report the budgetary comparison schedule if a state law requires that local governments prepare general fund and special revenue fund budgets on a basis that differs from the basis of accounting required by GAAP? correct answers The actual amounts in the budgetary comparison schedule should be reported using the government's budgetary basis. Expenditures for supplies ordered by a special revenue fund were inadvertently recorded in the accounts of the general fund in the amount of $100. What should the journal entry for the general fund include, upon reimbursement of the $100, later the same month? correct answers A credit to Expenditures What is the first recording step for the general fund? correct answers Appropriation When should an encumbrance be recorded? correct answers When a purchase order is issued