ACCT 4421 EXAM FINAL EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
They can decide to not deprecate them. - ANSWER-What can governments do if
they can prove that they maintain their assets?
1/3 - ANSWER-How many states use the modified decrecation approach?
Disclosed in footnotes - ANSWER-Is overlapping debt disclosed or recorded in
financial statements?
Revenue bonds are only backed by specific revenue while GO bonds are backed by
the full faith of the government. - ANSWER-What is the difference between a GO
bond and revenue bond?
Only when the third party is unable to pay outstanding debt. - ANSWER-When is
conduit debt reported?
statement of net positions
Statement of revenue expenses and changes in net position
Statement of cash flows (gov bonds do not have these) - ANSWER-What are the
three proprietary funds statements?
4 - ANSWER-How many sections does GASB require with statement of cash flows?
Component Unit LSU is an example - ANSWER-Legally separate government for
which elected officials of primary government are financially accountable
Introductory section
Financial section
Statistical section - ANSWER-What Other Elements Make Up the Annual
Comprehensive Financial Report?
3
the original budget
the revised budget
the actual results - ANSWER-How many versions of the budget are required to be
reported?
No GASB cannot tell govs how to right their budgets. - ANSWER-Does GASB have
any control over budgets.
FASB - ANSWER-What accounting authority do non-profits report to?
They are reported as revenues based what they think they will receive. - ANSWER-
How are pledges reported?
, Only 2 restricted and non-restricted. - ANSWER-How many types of non-profit funds
are there?
•The FASB has jurisdiction over all not-for-profit (private) colleges and universities
•The GASB has jurisdiction over all government (public) colleges and universities -
ANSWER-What is difference in GASB vs FASB.
•They may elect to report as special-purpose entities engaging
1.Only in business-type activities
2.Only in governmental activities, or
3.In both - ANSWER-How can universities choose to report under GASB 34
loophole.
They are recored when they become measurable and probable - ANSWER-In
hospital litigation when is an expense accrued?
Government Auditing Standards - ANSWER-What is the yellow book?
When they receive $750,000 in Federal funds. - ANSWER-When are organizations
subject to a single audit?
$25,000 - ANSWER-What is the threshold on finding reports?
Federal Accounting Standards Advisory Board - ANSWER-What is the FASAB
Restricted - ANSWER-A town receives from the state its share of gas tax that was
collected last month. Which fund balance classification would best reflect the
constraint on the use of this money?(the gas tax was passed by the legislature and
the proceeds of the gas tax can only be used for road and bridge maintenance.
Tax Increment Financing (TIF) - ANSWER-A city and a land owner agree that the
city will borrow $5 million to widen a road and add a traffic signal that will be needed
if the landowner contructs a major shopping center. An agreement is made to
dedicate the new property taxes that will come from the development to repayment
of the bond. This arrangement is commonly called a _________________
Restricted - ANSWER-The legislature allocates $1 million to the City of Baton Rouge
and the city can only use the money to update fire department equipment. This
constraint would result in the funds being reflected as __________________ fund
balance.
Enterprise Fund - ANSWER-A city spends $50,000 on a new truck that will be used
by employees of the water department. The money came out of a __________ fund.
Retained - ANSWER-Which of the following is NOT a proper categorization of a fund
balance?
QUESTIONS WITH COMPLETE
SOLUTIONS
They can decide to not deprecate them. - ANSWER-What can governments do if
they can prove that they maintain their assets?
1/3 - ANSWER-How many states use the modified decrecation approach?
Disclosed in footnotes - ANSWER-Is overlapping debt disclosed or recorded in
financial statements?
Revenue bonds are only backed by specific revenue while GO bonds are backed by
the full faith of the government. - ANSWER-What is the difference between a GO
bond and revenue bond?
Only when the third party is unable to pay outstanding debt. - ANSWER-When is
conduit debt reported?
statement of net positions
Statement of revenue expenses and changes in net position
Statement of cash flows (gov bonds do not have these) - ANSWER-What are the
three proprietary funds statements?
4 - ANSWER-How many sections does GASB require with statement of cash flows?
Component Unit LSU is an example - ANSWER-Legally separate government for
which elected officials of primary government are financially accountable
Introductory section
Financial section
Statistical section - ANSWER-What Other Elements Make Up the Annual
Comprehensive Financial Report?
3
the original budget
the revised budget
the actual results - ANSWER-How many versions of the budget are required to be
reported?
No GASB cannot tell govs how to right their budgets. - ANSWER-Does GASB have
any control over budgets.
FASB - ANSWER-What accounting authority do non-profits report to?
They are reported as revenues based what they think they will receive. - ANSWER-
How are pledges reported?
, Only 2 restricted and non-restricted. - ANSWER-How many types of non-profit funds
are there?
•The FASB has jurisdiction over all not-for-profit (private) colleges and universities
•The GASB has jurisdiction over all government (public) colleges and universities -
ANSWER-What is difference in GASB vs FASB.
•They may elect to report as special-purpose entities engaging
1.Only in business-type activities
2.Only in governmental activities, or
3.In both - ANSWER-How can universities choose to report under GASB 34
loophole.
They are recored when they become measurable and probable - ANSWER-In
hospital litigation when is an expense accrued?
Government Auditing Standards - ANSWER-What is the yellow book?
When they receive $750,000 in Federal funds. - ANSWER-When are organizations
subject to a single audit?
$25,000 - ANSWER-What is the threshold on finding reports?
Federal Accounting Standards Advisory Board - ANSWER-What is the FASAB
Restricted - ANSWER-A town receives from the state its share of gas tax that was
collected last month. Which fund balance classification would best reflect the
constraint on the use of this money?(the gas tax was passed by the legislature and
the proceeds of the gas tax can only be used for road and bridge maintenance.
Tax Increment Financing (TIF) - ANSWER-A city and a land owner agree that the
city will borrow $5 million to widen a road and add a traffic signal that will be needed
if the landowner contructs a major shopping center. An agreement is made to
dedicate the new property taxes that will come from the development to repayment
of the bond. This arrangement is commonly called a _________________
Restricted - ANSWER-The legislature allocates $1 million to the City of Baton Rouge
and the city can only use the money to update fire department equipment. This
constraint would result in the funds being reflected as __________________ fund
balance.
Enterprise Fund - ANSWER-A city spends $50,000 on a new truck that will be used
by employees of the water department. The money came out of a __________ fund.
Retained - ANSWER-Which of the following is NOT a proper categorization of a fund
balance?
