ACCT 4421 Exam 1 UPDATED ACTUAL
Exam Questions and CORRECT Answers
which statement required 2 sets of financial statements - CORRECT ANSWER - GASB
#34
what is a fund - CORRECT ANSWER - - keeps track of specific sources of
funding/spending
- allows govts. and NFPs to adhere to restrictions
- fiscal and accounting entity
self-balancing set of accounts from which FS are prepared
T/F: fund structure mirrors organizational structure - CORRECT ANSWER - false
assets - CORRECT ANSWER - resources with present service capacity that the govt.
presently controls
liabilities - CORRECT ANSWER - present obligations to sacrifice resources that the govt
has little/no ability to avoid
deferred outflow of resources - CORRECT ANSWER - consumption of net assets
applicable to a future reporting period
deferred inflow of resources - CORRECT ANSWER - acquisition of net assets applicable
to a future reporting period
residual for government-wide statements - CORRECT ANSWER - net position
residual for governmental statements - CORRECT ANSWER - fund balance
, outflow of resources - CORRECT ANSWER - consumption of net assets applicable to the
reporting period (expenses & expenditures, losses, transfers)
inflow of resources - CORRECT ANSWER - acquisition of net assets applicable to the
reporting period (revenues, gains, transfers in)
which statement established the fund balance hierarchy - CORRECT ANSWER - GASB
#54
non-spendable funds - CORRECT ANSWER - not in spendable form (inventories) or must
remain intact (principal of permanent fund)
restricted funds - CORRECT ANSWER - by their providers, constitutional provisions, or
by enabling legislation
committed funds - CORRECT ANSWER - by a formal action of the govt's highest level of
decision-making authority; contractual obligations; can be redeployed
assigned funds - CORRECT ANSWER - intent to use resources for specific purpose (but
can be moved around)
unassigned funds - CORRECT ANSWER - residual, available for any purpose
fund hierarchy applies to - CORRECT ANSWER - BS of governmental type funds
basis for accounting determines - CORRECT ANSWER - when transactions should be
recorded
Exam Questions and CORRECT Answers
which statement required 2 sets of financial statements - CORRECT ANSWER - GASB
#34
what is a fund - CORRECT ANSWER - - keeps track of specific sources of
funding/spending
- allows govts. and NFPs to adhere to restrictions
- fiscal and accounting entity
self-balancing set of accounts from which FS are prepared
T/F: fund structure mirrors organizational structure - CORRECT ANSWER - false
assets - CORRECT ANSWER - resources with present service capacity that the govt.
presently controls
liabilities - CORRECT ANSWER - present obligations to sacrifice resources that the govt
has little/no ability to avoid
deferred outflow of resources - CORRECT ANSWER - consumption of net assets
applicable to a future reporting period
deferred inflow of resources - CORRECT ANSWER - acquisition of net assets applicable
to a future reporting period
residual for government-wide statements - CORRECT ANSWER - net position
residual for governmental statements - CORRECT ANSWER - fund balance
, outflow of resources - CORRECT ANSWER - consumption of net assets applicable to the
reporting period (expenses & expenditures, losses, transfers)
inflow of resources - CORRECT ANSWER - acquisition of net assets applicable to the
reporting period (revenues, gains, transfers in)
which statement established the fund balance hierarchy - CORRECT ANSWER - GASB
#54
non-spendable funds - CORRECT ANSWER - not in spendable form (inventories) or must
remain intact (principal of permanent fund)
restricted funds - CORRECT ANSWER - by their providers, constitutional provisions, or
by enabling legislation
committed funds - CORRECT ANSWER - by a formal action of the govt's highest level of
decision-making authority; contractual obligations; can be redeployed
assigned funds - CORRECT ANSWER - intent to use resources for specific purpose (but
can be moved around)
unassigned funds - CORRECT ANSWER - residual, available for any purpose
fund hierarchy applies to - CORRECT ANSWER - BS of governmental type funds
basis for accounting determines - CORRECT ANSWER - when transactions should be
recorded
