Government Accounting Chapter 2
questions with actual answers.
3 types of general purpose governments ANS -activities Governmental;, business type and fiduciary
Governmental ANS -1) Administrative support ( managers office, personnel, data, processing and
finance)
2) core government services ( police, fire, public works and culture and recreation)
Business-type ANS -business like activities that are largely self-supported by user charges ( public
utilities, transportation system, hospital and golf courses)
Fiduciary ANS -where the gov acts as an agent or trustee for parties outside the government.
ex. collecting taxes
or trustee for investment of other government in gov investment pools
Deferred inflow/ outflow ANS -Inflow= decreases a government's net position
outflow= increase government's net position
ONLY USED WHEN REQUIRED BY GASB STANDARDS
Government wide financial statement ANS -reports on the government's operational accountability and
helps to assess whether the government is covering the full cost of services over the long run
report= Primary government,
> shows business and government activities of primary government in sep columns, along with a sep
column for primary government ( pg 26)
> accrual base using economic resources measurement focus
Fund financial statements ANS -more precise, have all 3 types of statements, (governmental, proprietary
and fiduciary).
questions with actual answers.
3 types of general purpose governments ANS -activities Governmental;, business type and fiduciary
Governmental ANS -1) Administrative support ( managers office, personnel, data, processing and
finance)
2) core government services ( police, fire, public works and culture and recreation)
Business-type ANS -business like activities that are largely self-supported by user charges ( public
utilities, transportation system, hospital and golf courses)
Fiduciary ANS -where the gov acts as an agent or trustee for parties outside the government.
ex. collecting taxes
or trustee for investment of other government in gov investment pools
Deferred inflow/ outflow ANS -Inflow= decreases a government's net position
outflow= increase government's net position
ONLY USED WHEN REQUIRED BY GASB STANDARDS
Government wide financial statement ANS -reports on the government's operational accountability and
helps to assess whether the government is covering the full cost of services over the long run
report= Primary government,
> shows business and government activities of primary government in sep columns, along with a sep
column for primary government ( pg 26)
> accrual base using economic resources measurement focus
Fund financial statements ANS -more precise, have all 3 types of statements, (governmental, proprietary
and fiduciary).
