Governmental Accounting (Part II)
questions with actual answers.
Cash activities associated with the ongoing and central activities of an entity would be classified as what
on the SCF ANS -operating
Is the statistical section part of the basic financial statements ANS -No
Government-wide financial statements focus on the ANS -operational accountability of the government
What is the definition of operational accountability ANS -takes an economic view that reports on the
long-term efficient and effective use of resources
What is the definition of fiscal accountability ANS -takes a short-term view that focuses the reader on
compliance and current year performance
The joint presentation of government-wide and fund financial statements and appropriate reconciliation
is called ANS -the integrated approach
The MDA ANS -is part of required supplementary information and is meant to introduce the basic
financial statements and provide and analytical overview of the governmental financial activities. The
MD&A may include objective analysis of current conditions, comparison of prior and current year
activities and significant results reported in fund financial statements
Is reconciliation of the fund financial statements included as part of the basic financial statements ANS -
not required supplementary information
Government-wide financial statements should classify net assets as ANS -(1) invested in capital assets,
(2) restricted, and (3) unrestricted
Under the modified approach, infrastructure expenditures are reported as ANS -expenses except for
outlays that result in additions or improvements, which would be capitalized
questions with actual answers.
Cash activities associated with the ongoing and central activities of an entity would be classified as what
on the SCF ANS -operating
Is the statistical section part of the basic financial statements ANS -No
Government-wide financial statements focus on the ANS -operational accountability of the government
What is the definition of operational accountability ANS -takes an economic view that reports on the
long-term efficient and effective use of resources
What is the definition of fiscal accountability ANS -takes a short-term view that focuses the reader on
compliance and current year performance
The joint presentation of government-wide and fund financial statements and appropriate reconciliation
is called ANS -the integrated approach
The MDA ANS -is part of required supplementary information and is meant to introduce the basic
financial statements and provide and analytical overview of the governmental financial activities. The
MD&A may include objective analysis of current conditions, comparison of prior and current year
activities and significant results reported in fund financial statements
Is reconciliation of the fund financial statements included as part of the basic financial statements ANS -
not required supplementary information
Government-wide financial statements should classify net assets as ANS -(1) invested in capital assets,
(2) restricted, and (3) unrestricted
Under the modified approach, infrastructure expenditures are reported as ANS -expenses except for
outlays that result in additions or improvements, which would be capitalized
