ACCT 4421 Exam 1 LSU Briggs
Questions and Answers
-often same product produced
-using similar resources
-using scarce resource to produce a product or service
-using managements' systems to report relevant and timely results
-same economic system
-control and evaluation techniques used - Correct Answers -similarities between
government and non profits
-no profit motive
-policy setting done by elected or appointed officials
-budget is the driving force
-tax exempt debt issued
-no shareholders/owners
-financial resource contributors do not receive a proportionate share of the
goods/services
-resources may be restricted
-capital assets may not produce revenue or save costs
-less distinction of internal and external reporting
-provide services for advocating political or social issue or carry out research for
betterment of society - Correct Answers -differences between government and non
profit
-seize assets from other governments
-issue tax exempt debt
-elect or appoint officials - Correct Answers -governments can do these three things
DEBIT Expenditures
CREDIT Cash/Voucher Payable
**Numbers in ABOVE entry will be the number that is the ACTUAL cost of goods and
services** - Correct Answers -journal entry when services are being used
DEBIT Expenditures
CREDIT Cash/Voucher Payable - Correct Answers -ACTUAL cost of goods entry
,DEBIT Reserve for Encumbrance
CREDIT Fund Balance--Assigned or Committed - Correct Answers -reclassification
entry done for encumbrances
-governmental entity
-governmental non profit - Correct Answers -two types of government organization
included in GASB (Governmental Accounting Standards Board)
-federal departments and agencies - Correct Answers -part of FASAB (Federal
Accounting Standards Advisory Board)
FASB
GASB - Correct Answers -GAAP hierarchy
-authoritative
-non authoritative - Correct Answers -two parts of FASB; same names for two parts of
GASB
-public deserves to know where the money is being sent
-citizens have a right to know
-cornerstone of all financial reporting in governments - Correct Answers -three pieces to
accountability for GASB
inter-period equity - Correct Answers -financial reporting should provide information to
determine whether current year revenues were sufficient to pay for current year
services; uses full accrual
reconciliation - Correct Answers -___ is required to show the differences between inter-
period equity and budgetary compliance
-auditor's report
-MD&A
-basic financial statements
-required supplementary information
-combined statements and schedules - Correct Answers -the parts of the CAFR
(Comprehensive Annual Financial Report)
Comprehensive Annual Financial Report - Correct Answers -what does CAFR stand
for?
-government wide
-government fund - Correct Answers -the names of the two financial statements kept for
the government
-budgetary and fiscal compliance
, -service efforts and cost accomplishments - Correct Answers -two parts of FASB
budgetary and fiscal compliance - Correct Answers -if resources obtained and used
according to the legally adopted budgets
fiduciary - Correct Answers -this statement is still found in the CAFR
service efforts and cost accomplishments - Correct Answers -provide information to
assist users in assessing the service efforts, costs, and accomplishments of
governmental entity
fund - Correct Answers -used to keep track of specific source of funding and spending
for particular purposes
-fund
-function
-unit
-activity
-character
-object - Correct Answers -list of the budget classifications
hardly ever; because you can have multiple funds going to one organization in the
department - Correct Answers -does fund structure resemble organization structure?
assets - Correct Answers -present service capacity the government currently controls
liabilities - Correct Answers -present obligations to sacrifice resources that he
government has little or not discretion to avoid
deferred outflow of resources - Correct Answers -consumption of net assets applicable
to a future reporting period, using up assets, close to prepaids
deferred inflow of resources - Correct Answers -acquisition of net assets applicable to a
future reporting period, similar to unearned revenue
fund balance - Correct Answers -residual for Government Wide Net Position
outflow of resources - Correct Answers -consumption of net assets applicable to the
reporting period (includes expenses, losses, OFU transfer out)
inflow of resources - Correct Answers -acquisition of net assets applicable to the
reporting period (includes revenues, gains, OFS transfer in)
other financing sources OFS- transfer in - Correct Answers --transfer money between
funds
-when the money comes in
Questions and Answers
-often same product produced
-using similar resources
-using scarce resource to produce a product or service
-using managements' systems to report relevant and timely results
-same economic system
-control and evaluation techniques used - Correct Answers -similarities between
government and non profits
-no profit motive
-policy setting done by elected or appointed officials
-budget is the driving force
-tax exempt debt issued
-no shareholders/owners
-financial resource contributors do not receive a proportionate share of the
goods/services
-resources may be restricted
-capital assets may not produce revenue or save costs
-less distinction of internal and external reporting
-provide services for advocating political or social issue or carry out research for
betterment of society - Correct Answers -differences between government and non
profit
-seize assets from other governments
-issue tax exempt debt
-elect or appoint officials - Correct Answers -governments can do these three things
DEBIT Expenditures
CREDIT Cash/Voucher Payable
**Numbers in ABOVE entry will be the number that is the ACTUAL cost of goods and
services** - Correct Answers -journal entry when services are being used
DEBIT Expenditures
CREDIT Cash/Voucher Payable - Correct Answers -ACTUAL cost of goods entry
,DEBIT Reserve for Encumbrance
CREDIT Fund Balance--Assigned or Committed - Correct Answers -reclassification
entry done for encumbrances
-governmental entity
-governmental non profit - Correct Answers -two types of government organization
included in GASB (Governmental Accounting Standards Board)
-federal departments and agencies - Correct Answers -part of FASAB (Federal
Accounting Standards Advisory Board)
FASB
GASB - Correct Answers -GAAP hierarchy
-authoritative
-non authoritative - Correct Answers -two parts of FASB; same names for two parts of
GASB
-public deserves to know where the money is being sent
-citizens have a right to know
-cornerstone of all financial reporting in governments - Correct Answers -three pieces to
accountability for GASB
inter-period equity - Correct Answers -financial reporting should provide information to
determine whether current year revenues were sufficient to pay for current year
services; uses full accrual
reconciliation - Correct Answers -___ is required to show the differences between inter-
period equity and budgetary compliance
-auditor's report
-MD&A
-basic financial statements
-required supplementary information
-combined statements and schedules - Correct Answers -the parts of the CAFR
(Comprehensive Annual Financial Report)
Comprehensive Annual Financial Report - Correct Answers -what does CAFR stand
for?
-government wide
-government fund - Correct Answers -the names of the two financial statements kept for
the government
-budgetary and fiscal compliance
, -service efforts and cost accomplishments - Correct Answers -two parts of FASB
budgetary and fiscal compliance - Correct Answers -if resources obtained and used
according to the legally adopted budgets
fiduciary - Correct Answers -this statement is still found in the CAFR
service efforts and cost accomplishments - Correct Answers -provide information to
assist users in assessing the service efforts, costs, and accomplishments of
governmental entity
fund - Correct Answers -used to keep track of specific source of funding and spending
for particular purposes
-fund
-function
-unit
-activity
-character
-object - Correct Answers -list of the budget classifications
hardly ever; because you can have multiple funds going to one organization in the
department - Correct Answers -does fund structure resemble organization structure?
assets - Correct Answers -present service capacity the government currently controls
liabilities - Correct Answers -present obligations to sacrifice resources that he
government has little or not discretion to avoid
deferred outflow of resources - Correct Answers -consumption of net assets applicable
to a future reporting period, using up assets, close to prepaids
deferred inflow of resources - Correct Answers -acquisition of net assets applicable to a
future reporting period, similar to unearned revenue
fund balance - Correct Answers -residual for Government Wide Net Position
outflow of resources - Correct Answers -consumption of net assets applicable to the
reporting period (includes expenses, losses, OFU transfer out)
inflow of resources - Correct Answers -acquisition of net assets applicable to the
reporting period (includes revenues, gains, OFS transfer in)
other financing sources OFS- transfer in - Correct Answers --transfer money between
funds
-when the money comes in
