ACCT 4421 Ch 1 & 2 Questions and Answers
100% Solved
Which of the following are true of the modified accrual basis of accounting? Correct Answ_-
Revenues are recognized in the period they are measurable and available for spending.
- Expenditures are recognized when they create an obligation to be paid from current financial
resources.
Government-wide financial statements are intended to provide an aggregated overview of which
of the following? Correct Answ_a government's net position and changes in net position
Proprietary and fiduciary funds follow account and reporting principles similar to those of
______ organizations. Correct Answ_business
Government-wide financial statements assist in assessing ______, which is whether the
government has used its resources efficiently and effectively in meeting objectives. Correct
Answ_operational accountability
,Which of the following is true of a CAFR?
A. It is required for both state and local governments.
B. It is not required.
C. It is only required for state governments. Correct Answ_B. It is not required.
Match the type of entity with the financial reporting objectives. Correct Answ_State and
local govts -->
Financial reporting is used in making economic, social and political decisions and in assessing
accountability.
Federal government -->
Financial reporting should help achieve accountability and assist report users in evaluating
budgetary integrity.
Not-for-profit govt -->
Financial reporting should provide information useful in making resource allocation decisions.
A performance and accountability report (PAR) includes which of the following? Correct
Answ_- Basic financial statements
,- MD&A
Fund financial statements' focus on the short-term flow of current financial resources make it
easier for users to assess ______ accountability, which is ensuring compliance with public
decisions concerning raising and spending resources. Correct Answ_fiscal
Not-for-profit organizations are required to prepare a set of organization-wide financial
statements that include which of the following? Correct Answ_- statement of cash flows
- statement of activities (IS)
- statement of financial position (BS)
Revenues are recognized in the period they are measurable and available for spending and
expenditures are recognized when they create an obligation to be paid from current financial
resources under the ______ basis. Correct Answ_modified accrual
, For several years, the GASB has encouraged state and local governments to experiment with
______ measures to provide more complete information about a government's performance.
Correct Answ_reporting service efforts and accomplishments (SEA)
Funds that account for the business-type and certain trust and custodial activities of the
government are referred to as ______ and ______ funds. Correct Answ_- proprietary
- fiduciary
True or false: The National Council on Governmental Accounting (NCGA) is the current
standard-setting body for governmental accounting. Correct Answ_False
[Reason: GASB]
Which of the following are true of a CAFR? Correct Answ_- It is a government's
comprehensive annual financial report.
- It is not required.
The objectives of governmental financial reports as identified by GASB Concepts Statement No.
1 are to ______. Correct Answ_- provide information to assess a government's accountability
100% Solved
Which of the following are true of the modified accrual basis of accounting? Correct Answ_-
Revenues are recognized in the period they are measurable and available for spending.
- Expenditures are recognized when they create an obligation to be paid from current financial
resources.
Government-wide financial statements are intended to provide an aggregated overview of which
of the following? Correct Answ_a government's net position and changes in net position
Proprietary and fiduciary funds follow account and reporting principles similar to those of
______ organizations. Correct Answ_business
Government-wide financial statements assist in assessing ______, which is whether the
government has used its resources efficiently and effectively in meeting objectives. Correct
Answ_operational accountability
,Which of the following is true of a CAFR?
A. It is required for both state and local governments.
B. It is not required.
C. It is only required for state governments. Correct Answ_B. It is not required.
Match the type of entity with the financial reporting objectives. Correct Answ_State and
local govts -->
Financial reporting is used in making economic, social and political decisions and in assessing
accountability.
Federal government -->
Financial reporting should help achieve accountability and assist report users in evaluating
budgetary integrity.
Not-for-profit govt -->
Financial reporting should provide information useful in making resource allocation decisions.
A performance and accountability report (PAR) includes which of the following? Correct
Answ_- Basic financial statements
,- MD&A
Fund financial statements' focus on the short-term flow of current financial resources make it
easier for users to assess ______ accountability, which is ensuring compliance with public
decisions concerning raising and spending resources. Correct Answ_fiscal
Not-for-profit organizations are required to prepare a set of organization-wide financial
statements that include which of the following? Correct Answ_- statement of cash flows
- statement of activities (IS)
- statement of financial position (BS)
Revenues are recognized in the period they are measurable and available for spending and
expenditures are recognized when they create an obligation to be paid from current financial
resources under the ______ basis. Correct Answ_modified accrual
, For several years, the GASB has encouraged state and local governments to experiment with
______ measures to provide more complete information about a government's performance.
Correct Answ_reporting service efforts and accomplishments (SEA)
Funds that account for the business-type and certain trust and custodial activities of the
government are referred to as ______ and ______ funds. Correct Answ_- proprietary
- fiduciary
True or false: The National Council on Governmental Accounting (NCGA) is the current
standard-setting body for governmental accounting. Correct Answ_False
[Reason: GASB]
Which of the following are true of a CAFR? Correct Answ_- It is a government's
comprehensive annual financial report.
- It is not required.
The objectives of governmental financial reports as identified by GASB Concepts Statement No.
1 are to ______. Correct Answ_- provide information to assess a government's accountability
