ACCT 4421 Governmental Chapter 1
UPDATED ACTUAL Exam Questions and
CORRECT Answers
financial reporting objective is _______________ - CORRECT ANSWER -
Accountability
It is the cornerstone of all financial reporting in government. - CORRECT ANSWER -
GASB
reporting should show current year revenues sufficient to pay current year expenditures. -
CORRECT ANSWER - Inter-period Equity
reporting should demonstrate whether resources were obtained and used in accordance with the
entity's legally adopted budget. - CORRECT ANSWER - Budgetary and Fiscal
Compliance
reporting provide info to assist users in assessing the service efforts and accomplishments of the
governmental entity. - CORRECT ANSWER - Service effort cost and accomplishments
What are the three sources of GAAP? - CORRECT ANSWER - FASB - Financial
Accounting Standards Board
GASB - Governmental Accounting Standards Board
FASAB - Federal Accounting Standards Advisory Board
o Businesses
o Non-governmental not-for-profits - CORRECT ANSWER - FASB - Financial
Accounting Standards Board
, o Governmental entities (state and local governments)
o Governmental not-for-profits - CORRECT ANSWER - GASB - Governmental
Accounting Standards Board
o Federal Government and its agencies - CORRECT ANSWER - FASAB - Federal
Accounting Standards Advisory Board
GAAP Hierarchy
___1___
1. ___________2____________
2. ___________3____________
___4___
1. __________5_________
a. _______6________ - Official established accounting principles - GASB statements
b. ________7______ - GASB Technical Bulletins, GASB Implementation Guides, and literature
of the AICPA cleared by GASB
2. _______________8______________ - CORRECT ANSWER - 1. FASB
2. Authoritative
3. Non-authoritative
4. GASB
5. Authoritative GAAP
6. Category A
7. Category B
8. Non-authoritative GAAP
sets standards for all state and local governments and governmental non-profits. Established in
1984, it has 56 stds and 4 concepts stmts as of Dec. 2009. - CORRECT ANSWER -
GASB:
UPDATED ACTUAL Exam Questions and
CORRECT Answers
financial reporting objective is _______________ - CORRECT ANSWER -
Accountability
It is the cornerstone of all financial reporting in government. - CORRECT ANSWER -
GASB
reporting should show current year revenues sufficient to pay current year expenditures. -
CORRECT ANSWER - Inter-period Equity
reporting should demonstrate whether resources were obtained and used in accordance with the
entity's legally adopted budget. - CORRECT ANSWER - Budgetary and Fiscal
Compliance
reporting provide info to assist users in assessing the service efforts and accomplishments of the
governmental entity. - CORRECT ANSWER - Service effort cost and accomplishments
What are the three sources of GAAP? - CORRECT ANSWER - FASB - Financial
Accounting Standards Board
GASB - Governmental Accounting Standards Board
FASAB - Federal Accounting Standards Advisory Board
o Businesses
o Non-governmental not-for-profits - CORRECT ANSWER - FASB - Financial
Accounting Standards Board
, o Governmental entities (state and local governments)
o Governmental not-for-profits - CORRECT ANSWER - GASB - Governmental
Accounting Standards Board
o Federal Government and its agencies - CORRECT ANSWER - FASAB - Federal
Accounting Standards Advisory Board
GAAP Hierarchy
___1___
1. ___________2____________
2. ___________3____________
___4___
1. __________5_________
a. _______6________ - Official established accounting principles - GASB statements
b. ________7______ - GASB Technical Bulletins, GASB Implementation Guides, and literature
of the AICPA cleared by GASB
2. _______________8______________ - CORRECT ANSWER - 1. FASB
2. Authoritative
3. Non-authoritative
4. GASB
5. Authoritative GAAP
6. Category A
7. Category B
8. Non-authoritative GAAP
sets standards for all state and local governments and governmental non-profits. Established in
1984, it has 56 stds and 4 concepts stmts as of Dec. 2009. - CORRECT ANSWER -
GASB:
