ACCT 4421 Governmental Accounting T/F - Exam 2 UPDATED ACTUAL Exam Questions and CORRECT Answers

ACCT 4421 Governmental Accounting T/F -
Exam 2 UPDATED ACTUAL Exam
Questions and CORRECT Answers
T - CORRECT ANSWER - Expenditures are generally recognized when resources are
acquired; expenses when resources are consumed


True


False


T - CORRECT ANSWER - Governmental fund liabilities are considered current only
when they must be liquidated with expendable available financial resources—not, as in
businesses and in the government-wide statements, when they must be paid within a year


True


False


F - CORRECT ANSWER - When accounting for inventory items in a governmental fund,
GASB standards permit the use of the consumption method only


True


False


T - CORRECT ANSWER - In a governmental fund, expenditures for wages and salaries
should be recognized in the period in which the employees earn them