Governmental Accounting questions
with validated answers 100%.
Objectives of Fund Accounting and Reporting ANS -1. Timeliness
2. Consistency
3. Comparability
GAO ANS -Governmental Accountability Office
Prescribes Auditing Standards(Single Audit Act)
Characteristics of Information In Governmental Financial Reports ANS -UR MICE
Understandability
Reliability
Make a Difference - Relevance
In Timeliness
Consistency year over year
Entity-to-entity comparability
Governmental Funds ANS -GRaSPP
General Fund
special Revenue Funds
debt Service Funds
capital Projects Funds
Permanent Fund
,General Fund ANS -Set up to account for the ordinary operations of a governmental unit that is financed
from taxes and other general revenues. All transactions not accounted for in other funds are accounted
for here.
Special Revenue Funds ANS -Set up to account for revenues from specific taxes or other earmarked
sources(by law) are restricted or committed to finance particular activities of government
Debt Service Funds ANS -Debt Service Funds are set up to account for the accumulation of resources
and the payment of interest and principal on all "general obligation debt" other than that serviced by
enterprise funds or by special assessments in another fund. Resources of the fund are restricted,
committed, or assigned to debt service expenditures.
Capital Projects Funds ANS -Capital Projects funds are set up to account for resources restricted,
committed, or assigned for the acquisition or construction of major capital assets by a governmental
unit, except those projects financed by an enterprise fund.
Permanent Fund ANS -Permanent funds are used to report resources that are legally restricted to the
extent that income, and not principal, may be used for purposes supporting the reporting government's
programs (ie for the benefit of the public)
Proprietary Funds ANS -SE
internal Service funds
Enterprise funds
Internal Service Funds ANS -set up to account for goods and services provided by designated
departments on a cost-reimbursement fee basis to other departments and agencies within a single
governmental unit or to other governmental units. Customers of the internal service fund are primarily
internal.
Enterprise Funds ANS -set up to account for the acquisition and operation of governmental facilities and
services that are intended to be primarily (more than 50%) self-supported by user charges. Customers of
the enterprise fund are primarily external.
, Fiduciary (Trust) Accounts ANS -CIPPOE
Custodial Funds
Investment Trust Funds
Private Purpose Trust Funds
Pension(and Other Employee benefit) trust funds
Custodial Funds ANS -usually account for resources in temporary custody of the governmental
unit(Taxes collected for another governmental entity) and any fiduciary activities that are not required
to be reported in other fiduciary fund classifications
Investment Trust Funds ANS -account for external investment pools
Private Purpose Trust Funds ANS -used for activities not properly accounted for either as pension or
investment trust funds, in which assets are dedicated to providing benefits to recipients in accordance
with benefit terms and assets are legally protected from creditors of the government
Pension (and other employee benefit) Trust Funds ANS -account for resources of defined benefit plans,
defined contribution plans, post-employment benefit plans, and other long-term employee benefit
plans.
Expenditures of a governmental unit for insurance extending over more than one accounting period:
A. Must be accounted for as expenditures of the period of acquisition.
B. Must be accounted for as expenditures of the periods subsequent to acquisition.
C. Must be allocated between or among accounting periods.
D. May be allocated between or among accounting periods or may be accounted for as expenditures of
the period of acquisition. ANS -Choice "D" is correct. Expenditures extending over more than one period
may be allocated between or among accounting periods. Non spendable current resources such as
inventory or prepaid may be recorded using either the consumption or the purchases method. Current
assets of this character serve as the basis for classification of fund balance as non spendable
with validated answers 100%.
Objectives of Fund Accounting and Reporting ANS -1. Timeliness
2. Consistency
3. Comparability
GAO ANS -Governmental Accountability Office
Prescribes Auditing Standards(Single Audit Act)
Characteristics of Information In Governmental Financial Reports ANS -UR MICE
Understandability
Reliability
Make a Difference - Relevance
In Timeliness
Consistency year over year
Entity-to-entity comparability
Governmental Funds ANS -GRaSPP
General Fund
special Revenue Funds
debt Service Funds
capital Projects Funds
Permanent Fund
,General Fund ANS -Set up to account for the ordinary operations of a governmental unit that is financed
from taxes and other general revenues. All transactions not accounted for in other funds are accounted
for here.
Special Revenue Funds ANS -Set up to account for revenues from specific taxes or other earmarked
sources(by law) are restricted or committed to finance particular activities of government
Debt Service Funds ANS -Debt Service Funds are set up to account for the accumulation of resources
and the payment of interest and principal on all "general obligation debt" other than that serviced by
enterprise funds or by special assessments in another fund. Resources of the fund are restricted,
committed, or assigned to debt service expenditures.
Capital Projects Funds ANS -Capital Projects funds are set up to account for resources restricted,
committed, or assigned for the acquisition or construction of major capital assets by a governmental
unit, except those projects financed by an enterprise fund.
Permanent Fund ANS -Permanent funds are used to report resources that are legally restricted to the
extent that income, and not principal, may be used for purposes supporting the reporting government's
programs (ie for the benefit of the public)
Proprietary Funds ANS -SE
internal Service funds
Enterprise funds
Internal Service Funds ANS -set up to account for goods and services provided by designated
departments on a cost-reimbursement fee basis to other departments and agencies within a single
governmental unit or to other governmental units. Customers of the internal service fund are primarily
internal.
Enterprise Funds ANS -set up to account for the acquisition and operation of governmental facilities and
services that are intended to be primarily (more than 50%) self-supported by user charges. Customers of
the enterprise fund are primarily external.
, Fiduciary (Trust) Accounts ANS -CIPPOE
Custodial Funds
Investment Trust Funds
Private Purpose Trust Funds
Pension(and Other Employee benefit) trust funds
Custodial Funds ANS -usually account for resources in temporary custody of the governmental
unit(Taxes collected for another governmental entity) and any fiduciary activities that are not required
to be reported in other fiduciary fund classifications
Investment Trust Funds ANS -account for external investment pools
Private Purpose Trust Funds ANS -used for activities not properly accounted for either as pension or
investment trust funds, in which assets are dedicated to providing benefits to recipients in accordance
with benefit terms and assets are legally protected from creditors of the government
Pension (and other employee benefit) Trust Funds ANS -account for resources of defined benefit plans,
defined contribution plans, post-employment benefit plans, and other long-term employee benefit
plans.
Expenditures of a governmental unit for insurance extending over more than one accounting period:
A. Must be accounted for as expenditures of the period of acquisition.
B. Must be accounted for as expenditures of the periods subsequent to acquisition.
C. Must be allocated between or among accounting periods.
D. May be allocated between or among accounting periods or may be accounted for as expenditures of
the period of acquisition. ANS -Choice "D" is correct. Expenditures extending over more than one period
may be allocated between or among accounting periods. Non spendable current resources such as
inventory or prepaid may be recorded using either the consumption or the purchases method. Current
assets of this character serve as the basis for classification of fund balance as non spendable
