CGFM Exam #2 - Governmental Accounting fully solved graded A+ 2023

CGFM Exam #2 - Governmental Accounting fully solved graded A+ 2023Reasons Governments are not Run Like Businesses - correct answer 1) Goals and objectives differ considerably from those in the private sector. 2) Exists to provide services, not gain profits. 3) Goals and objectives are sometimes established with input from the public. 4) Resources are derived primarily from taxes; there are no shareholders. 5) No single measure of success; can't use increasing market share, earnings per share, or the fact that it is still in business like private sector corporations. 6) Legally bound by budget. 7) Must provide reports that demonstrate compliance. Government Budget - correct answer Establishes spending authorizations, outlines programs and services to be provided, and defines the sources of revenues that will be used to fund them. Specifies restrictions on the use of resources. Private Sector Budget - correct answer Guide to operations. Used as a benchmark for performance, goals for growth, or as a management tool for planning. Financial Reporting - correct answer Primary mechanism by which public officials are able to demonstrate accountability. Accountability - correct answer In gov't, it is the cornerstone of financial reporting. Based on the belief that the gov't has a responsibility to report, the public has a right to know, and the ultimate power belongs to the people. Legal Accountability - correct answer The need to comply with various laws, rules and regulations. Performance accountability - correct answer Ensure that gov'ts. act in an efficient, effective or economic manner. Ensure that goals and objectives are met. Fiscal Accountability - correct answer Responsible for raising resources and allocating those resources to accomplish objectives. Financial reporting is an important method used to demonstrate this type of accountability. Operational Accountability - correct answer Must be good stewards of public resources y making sure the resources are used appropriately. One way to address this type of accountability is through the use of performance measures and performance reporting. Initiatives - correct answer Proposed laws or constitutional amendments placed on the ballot by citizen petition. Referendums - correct answer Permit voters to cast ballots directly for (or against) measures which, if passed, would become state statutes or constitutional amendments. Interperiod Equity - correct answer Analysis of why the financial position improved, or deteriorated, helps to explain whether current-year taxpayers passed on financial burdens to future-year taxpayers without related benefits. Significant part of accountability and is fundamental to public administration. Debt Ceiling - correct answer An explicit, legislated limit on the amount of public debt that can be outstanding. Can be adjusted by enacting amendments to earlier laws. An accountability mechanism that also allows Congress to monitor the financial effects of spending and tax policies. Financial Report Users - correct answer 1) Legislators 2) Other Oversight Organizations 3) Citizens 4) Investors 5) Creditors 6) Media 7) Financial Managers/Program Managers 9) Employees/Employee Organizations