ACCT 4421 Governmental Accounting T/F - Exam 2 correctly answered to pass

ACCT 4421 Governmental Accounting
T/F - Exam 2 correctly answered to pass

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



True



False



F - correct answer ✔✔The purchases method is consistent with full accrual basis of accounting



True



False



T - correct answer ✔✔When accounting for inventory items in a governmental fund, a
reclassification of the appropriate portion of fund balance is always required when the
consumption method is used



True



False



T - correct answer ✔✔In budgeting for governmental funds, governments appropriate the
resources for general capital assets in the periods when they are to be purchased, not in the
periods in which the assets will be used



True



False