FAR 8 Governmental Accounting
questions with actual answers.
Name the primary authoritative body for GAAP for governmental entities: ANS - Governmental
Accounting Standards Board (GASB)
What are the three accounting themes addressed by governmental accounting? ANS - - Fund Structure
- Fund Accounting
- External Reporting
Identify the major categories of funds used by state and local governmental units: ANS - - Governmental
- Proprietary
- Fiduciary
What terms define the manner and timing of transaction recognition in governmental fund accounting?
ANS - - measurement focus (how transactions are recognized)
- basis of accounting (when transactions are recognized)
What are the objectives of external reporting? ANS - - operational accounting
- fiscal accountability
What types of external reports meet the accountability objectives of government? ANS - Operational
accountability: govern- wide F/S
Fiscal accountability: fund F/S
Name each governmental fund type:
GRaSSP ANS - GENERAL fund
R Special REVENUE funds
, S Debt SERVICE funds
P Capital PROJECTS funds
P PERMANENT funds
What are the fund accounting principles applicable to governmental funds? ANS - Measurement focus:
current financial resources
Basis of accounting: modified accrual
What specialized accounting practices are followed by the governmental funds?
BAE ANS - Budgetary accounting
Activity (Actual) accounting
Encumbrance accounting
Name and Define the five Classification of fund balance in GRaSPP:
NU CAR ANS - N- nonspendable (pre-paid expenses, inventories)
U - Unassigned balances (positive)
C- committed (resolutions)
A- assigned fund balance (govern. intends to obligate)
R - restricted (by law, grantors, creditors)
Name each proprietary fund type.
SE ANS - Internal Service Funds
Enterprise Funds
What are the fund accounting principles applicable to proprietary funds? ANS - Measurement focus:
economic resources
questions with actual answers.
Name the primary authoritative body for GAAP for governmental entities: ANS - Governmental
Accounting Standards Board (GASB)
What are the three accounting themes addressed by governmental accounting? ANS - - Fund Structure
- Fund Accounting
- External Reporting
Identify the major categories of funds used by state and local governmental units: ANS - - Governmental
- Proprietary
- Fiduciary
What terms define the manner and timing of transaction recognition in governmental fund accounting?
ANS - - measurement focus (how transactions are recognized)
- basis of accounting (when transactions are recognized)
What are the objectives of external reporting? ANS - - operational accounting
- fiscal accountability
What types of external reports meet the accountability objectives of government? ANS - Operational
accountability: govern- wide F/S
Fiscal accountability: fund F/S
Name each governmental fund type:
GRaSSP ANS - GENERAL fund
R Special REVENUE funds
, S Debt SERVICE funds
P Capital PROJECTS funds
P PERMANENT funds
What are the fund accounting principles applicable to governmental funds? ANS - Measurement focus:
current financial resources
Basis of accounting: modified accrual
What specialized accounting practices are followed by the governmental funds?
BAE ANS - Budgetary accounting
Activity (Actual) accounting
Encumbrance accounting
Name and Define the five Classification of fund balance in GRaSPP:
NU CAR ANS - N- nonspendable (pre-paid expenses, inventories)
U - Unassigned balances (positive)
C- committed (resolutions)
A- assigned fund balance (govern. intends to obligate)
R - restricted (by law, grantors, creditors)
Name each proprietary fund type.
SE ANS - Internal Service Funds
Enterprise Funds
What are the fund accounting principles applicable to proprietary funds? ANS - Measurement focus:
economic resources
