ACCT 4421 - Exam 1 UPDATED ACTUAL
Exam Questions and CORRECT Answers
internal - CORRECT ANSWER - which financial statement users are the most important
for governments?
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 or no discretion 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
net position - CORRECT ANSWER - residual for Government Wide statements
fund balance - CORRECT ANSWER - residual for Governmental Fund statements
outflow of resources - CORRECT ANSWER - consumption of net assets applicable to the
reporting period
inflow of resources - CORRECT ANSWER - acquisition of net assets applicable to the
reporting period
Financial Accounting Standards Board (FASB) - CORRECT ANSWER - sets the rules for
business organizations and non-governmental not-for-profits
, Governmental Accounting Standards Board (GASB) - CORRECT ANSWER - sets to rules
for governmental entities (state and local) and governmental not-for-profits
Federal Accounting Standards Advisory (FASAB) - CORRECT ANSWER - sets the rules
for the Federal Government and its agencies
accountability - CORRECT ANSWER - GASB's main financial reporting objective
inter-period equity - CORRECT ANSWER - GASB objective where financial reporting
should provide info to determine whether current year revenues were sufficient to pay for current
year services
budgetary and fiscal compliance - CORRECT ANSWER - GASB objective where
financial reporting should demonstrate whether resources were obtained and used in accordance
with the entity's legally adopted budget
service efforts and cost accomplishment - CORRECT ANSWER - GASB objective where
financial reporting should provide info to assist users in assessing the service efforts, costs, and
accomplishments of the govt entity
1999, 34 - CORRECT ANSWER - what year was GASB #__ enacted and required 2 sets
of FSs for governments?
fund - CORRECT ANSWER - accounting device used by govts and NFPs to keep track of
specific sources of funding and spending for particular purposes
fund - CORRECT ANSWER - self-balancing set of accounts from which FSs are prepared
nonspendable, spendable, restircted, committed, assigned, unassigned (NU CAR) - CORRECT
ANSWER - GASB #54 Fund Balance Hiearchy
Exam Questions and CORRECT Answers
internal - CORRECT ANSWER - which financial statement users are the most important
for governments?
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 or no discretion 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
net position - CORRECT ANSWER - residual for Government Wide statements
fund balance - CORRECT ANSWER - residual for Governmental Fund statements
outflow of resources - CORRECT ANSWER - consumption of net assets applicable to the
reporting period
inflow of resources - CORRECT ANSWER - acquisition of net assets applicable to the
reporting period
Financial Accounting Standards Board (FASB) - CORRECT ANSWER - sets the rules for
business organizations and non-governmental not-for-profits
, Governmental Accounting Standards Board (GASB) - CORRECT ANSWER - sets to rules
for governmental entities (state and local) and governmental not-for-profits
Federal Accounting Standards Advisory (FASAB) - CORRECT ANSWER - sets the rules
for the Federal Government and its agencies
accountability - CORRECT ANSWER - GASB's main financial reporting objective
inter-period equity - CORRECT ANSWER - GASB objective where financial reporting
should provide info to determine whether current year revenues were sufficient to pay for current
year services
budgetary and fiscal compliance - CORRECT ANSWER - GASB objective where
financial reporting should demonstrate whether resources were obtained and used in accordance
with the entity's legally adopted budget
service efforts and cost accomplishment - CORRECT ANSWER - GASB objective where
financial reporting should provide info to assist users in assessing the service efforts, costs, and
accomplishments of the govt entity
1999, 34 - CORRECT ANSWER - what year was GASB #__ enacted and required 2 sets
of FSs for governments?
fund - CORRECT ANSWER - accounting device used by govts and NFPs to keep track of
specific sources of funding and spending for particular purposes
fund - CORRECT ANSWER - self-balancing set of accounts from which FSs are prepared
nonspendable, spendable, restircted, committed, assigned, unassigned (NU CAR) - CORRECT
ANSWER - GASB #54 Fund Balance Hiearchy
