ACCY 407 Ch 2, Top Exam Questions & Answers. Rated A+

ACCY 407 Ch 2, Top Exam Questions & Answers. Rated A+ Governmental Activities - -core governmental services, together with admin support ex: police, fire, bridges, public buildings (pay even if not using) Business-Type Activities - -intended to be self-supporting by charging users for services they receive; costs should be covered by revenues Ex: public utilities, Ole Miss, transportation, tolls (don't pay unless you use) Fiduciary Activities - -governments act as either an agent or trustee for parties outside the government Ex: govt manages money for employee pension plans, mutual funds and trusts Required financial statements for state and local govts - -Government-wide & Fund Govt-Wide FS - -include only Governmental (governmental funds & internal service funds) and Business Activities (Enterprise Funds); report on the governmental reporting entity as a whole but focus on primary government Fund Financial Statements - -3 sets of fund financial statements (governmental funds, proprietary funds, fiduciary funds) fiduciary activities aren't included in - -gov't wide fin stmts why aren't fiduciary activities reported in govt-wide fin stmts - -because these aren't the governments resources, they are just managing them deferred inflow of resources behaves like - -a liability (gotten money but haven't done what was promised) Govt-Wide Statement of Net Position - -reports year end financial position; most comparable to business balance sheet Govt-Wide Statement of Activities - -expenses and revenues classified by program/function; uses separate columns for governmental activities, business-type activities and component units Deferred outflow of resources - -consumption of net assets by the govt that applies to a future reporting period; have used up resources Deferred inflow of resources - -acquisition of net assets by the govt that applies to a future reporting period