TEST BANK FOR ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ENTITIES 16TH EDITION BY RECK (All Chapters Covered) (Graded A+)

TEST BANK FOR
ACCOUNTING FOR
GOVERNMENTAL AND
NONPROFIT
ENTITIES 16TH
EDITION RECK
TEST BANK

,TEST BANK FOR ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ENTITIES 16TH
EDITION RECK




TEST BANK FOR ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ENTITIES 16TH
EDITION RECK
Chapter 02


Principles of Accounting and Financial Reporting for State and Local

, Governments




True / False Questions



1. Governmental funds are further classified as governmental or business-type.


True False



2. Governmental funds are identical to governmental activities, proprietary funds are
identical to business-type activities, and fiduciary funds are identical to fiduciary
activities of a government.


True False



3. An objective of the accounting system for a state or a local government is to
make it possible both to present fairly the funds and activities of the government
in conformity with generally accepted accounting principles and to demonstrate
compliance with finance-related legal and contractual provisions.


True False


4. Individual fund financial information is reported in separate columns of
governmental and proprietary fund financial statements for only those funds that
meet the GASB size-related criteria as major funds.


True False

, TEST BANK FOR ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ENTITIES 16TH
EDITION RECK
5. Economic resources are cash or items expected to be converted into cash during
the current period, or soon enough thereafter to pay current period liabilities.


True False



6. Governmental funds account for assets but not the liabilities.


True False



7. The types of funds that may be used in governmental accounting are classified
into the three categories of governmental, proprietary, and fiduciary.


True False



8. The governmental funds category includes the General Fund, special revenue
funds, debt service funds, capital projects funds, and internal service funds.


True False


9. Governments can, in part, demonstrate operational accountability by reporting
proprietary and fiduciary fund financial information, as well as all government-
wide financial information, using an economic resources measurement focus and
the accrual basis of accounting.


True False



10. All capital assets acquired by or used by a fund should be reported in the fund
balance sheet or statement of net position.