ACCT 4421 Chapter 5 UPDATED ACTUAL
Exam Questions and CORRECT Answers
who reports expenses? - CORRECT ANSWER - - government wide
- proprietary
- fiduciary
expenses focus - CORRECT ANSWER - full accrual
expenses result from: - CORRECT ANSWER - decreases in net economic resources
expenses are recognized when: - CORRECT ANSWER - an asset is consumed (used up)
who reports expenditures? - CORRECT ANSWER - governmental funds
expenditures focus - CORRECT ANSWER - modified accrual
(only current assets & liabilities)
expenditures result from: - CORRECT ANSWER - decreases in net current (expendable,
available) financial resources (CA-CL)
expenditures are recognized when: - CORRECT ANSWER - an asset is acquired
when should governments accrue a liability? - CORRECT ANSWER - 1. when it is
incurred (becomes obligated for)
2. GASB allowed exception- allows the delay of recognizing until the period the liability is paid
7 GASB Allowed Exceptions - CORRECT ANSWER - 1. compensated absences
, 2. pension & other post employment benefits
3. claims & judgements
4. inventories
5. prepayments
6. capital assets
7. principal & interest
examples of compensated absences: - CORRECT ANSWER - vacations
holidays
sick leave
sabbatical leave
jury duty
military
compensated absences: - CORRECT ANSWER - any time an employer pays you & you
are not at work
- earned in one period but often not paid until several periods later
GASB compensated absences: - CORRECT ANSWER - the liabilities and expenditures
are recognized in the periods in which payment is made
sick leave: - CORRECT ANSWER - different from vacation leave because it is beyond the
control of the employee and employer
GASB sick leave: - CORRECT ANSWER - sick leave is recognized as a liability only if it
is probable that the employer will compensate the employees for the benefits through cash
payments conditioned on the employees' termination or retirement
sabbatical leave: - CORRECT ANSWER - after a specified term of service employees may
be granted a paid leave of absence for either a semester or an academic year
Exam Questions and CORRECT Answers
who reports expenses? - CORRECT ANSWER - - government wide
- proprietary
- fiduciary
expenses focus - CORRECT ANSWER - full accrual
expenses result from: - CORRECT ANSWER - decreases in net economic resources
expenses are recognized when: - CORRECT ANSWER - an asset is consumed (used up)
who reports expenditures? - CORRECT ANSWER - governmental funds
expenditures focus - CORRECT ANSWER - modified accrual
(only current assets & liabilities)
expenditures result from: - CORRECT ANSWER - decreases in net current (expendable,
available) financial resources (CA-CL)
expenditures are recognized when: - CORRECT ANSWER - an asset is acquired
when should governments accrue a liability? - CORRECT ANSWER - 1. when it is
incurred (becomes obligated for)
2. GASB allowed exception- allows the delay of recognizing until the period the liability is paid
7 GASB Allowed Exceptions - CORRECT ANSWER - 1. compensated absences
, 2. pension & other post employment benefits
3. claims & judgements
4. inventories
5. prepayments
6. capital assets
7. principal & interest
examples of compensated absences: - CORRECT ANSWER - vacations
holidays
sick leave
sabbatical leave
jury duty
military
compensated absences: - CORRECT ANSWER - any time an employer pays you & you
are not at work
- earned in one period but often not paid until several periods later
GASB compensated absences: - CORRECT ANSWER - the liabilities and expenditures
are recognized in the periods in which payment is made
sick leave: - CORRECT ANSWER - different from vacation leave because it is beyond the
control of the employee and employer
GASB sick leave: - CORRECT ANSWER - sick leave is recognized as a liability only if it
is probable that the employer will compensate the employees for the benefits through cash
payments conditioned on the employees' termination or retirement
sabbatical leave: - CORRECT ANSWER - after a specified term of service employees may
be granted a paid leave of absence for either a semester or an academic year
