Governmental Accounting Exam 1-
Chapters 1-4 correctly answered graded
A+ passed
The governmental term for 'Profits' - correct answer ✔✔Residual Receipts
Anytime a government receives more than $__________ of federal funds, they must have an
independent audit and receive a CFDA number. - correct answer ✔✔$750,000
Each CFDA number has specific financial reporting standards and its own set of
__________________ ______________________. - correct answer ✔✔compliance
requirements
What are the five environmental differences between governments and for-profit enterprises? -
correct answer ✔✔Organizational Purpose, Sources of Revenues, Potential for Longevity,
Relationship with Stakeholders and Role of the Budget
What is the Organizational Purpose of a government? - correct answer ✔✔Enhance or maintain
the well being of citizens by providing public services in accordance with public policy goals.
What is the Source of Revenue for a government? - correct answer ✔✔Taxation is the primary
source.
What is the Potential for Longevity for a government? - correct answer ✔✔Governments are
not typically concerned with longevity. They emphasize the allocation of resources to
government programs, determine service costs and the long-term view of operations.
, What is the Relationship with Stakeholders for a government? - correct answer
✔✔Governments have an obligation to demonstrate accountability to tax paying citizens.
What is the Role of the Budget for a government? - correct answer ✔✔Government budgets are
legally constraining and become law once adopted.
Who sets the standards for governmental and not-for-profit organizations accounting? - correct
answer ✔✔GASB- Governmental Accounting Standards Board
What is the measurement focus? - correct answer ✔✔refers to WHAT items are being reported
in the financial statements.
What is the basis of accounting? - correct answer ✔✔determines WHEN transactions and
events are recognized in the accounting records
A Fund is (1)_______________, (2)_______________ and (3)____________________. - correct
answer ✔✔(1) Self Balancing, (2) separately reports resources and activities and (3) is
segregated because of the existence of restrictions or limitations on the use of certain
resources.
Two conditions that must be met for a Fund to exist: - correct answer ✔✔(1) There must be a
fiscal entity- assets set aside for a specific purpose and (2) there must be a double entry
accounting entity created to account for the fiscal entity.
What are the 5 types of Governmental Funds? - correct answer ✔✔General, Capital Projects,
Debt Services, Special Revenue and Permanent
What does the General Fund account for? - correct answer ✔✔Basic Services provided by the
government
Chapters 1-4 correctly answered graded
A+ passed
The governmental term for 'Profits' - correct answer ✔✔Residual Receipts
Anytime a government receives more than $__________ of federal funds, they must have an
independent audit and receive a CFDA number. - correct answer ✔✔$750,000
Each CFDA number has specific financial reporting standards and its own set of
__________________ ______________________. - correct answer ✔✔compliance
requirements
What are the five environmental differences between governments and for-profit enterprises? -
correct answer ✔✔Organizational Purpose, Sources of Revenues, Potential for Longevity,
Relationship with Stakeholders and Role of the Budget
What is the Organizational Purpose of a government? - correct answer ✔✔Enhance or maintain
the well being of citizens by providing public services in accordance with public policy goals.
What is the Source of Revenue for a government? - correct answer ✔✔Taxation is the primary
source.
What is the Potential for Longevity for a government? - correct answer ✔✔Governments are
not typically concerned with longevity. They emphasize the allocation of resources to
government programs, determine service costs and the long-term view of operations.
, What is the Relationship with Stakeholders for a government? - correct answer
✔✔Governments have an obligation to demonstrate accountability to tax paying citizens.
What is the Role of the Budget for a government? - correct answer ✔✔Government budgets are
legally constraining and become law once adopted.
Who sets the standards for governmental and not-for-profit organizations accounting? - correct
answer ✔✔GASB- Governmental Accounting Standards Board
What is the measurement focus? - correct answer ✔✔refers to WHAT items are being reported
in the financial statements.
What is the basis of accounting? - correct answer ✔✔determines WHEN transactions and
events are recognized in the accounting records
A Fund is (1)_______________, (2)_______________ and (3)____________________. - correct
answer ✔✔(1) Self Balancing, (2) separately reports resources and activities and (3) is
segregated because of the existence of restrictions or limitations on the use of certain
resources.
Two conditions that must be met for a Fund to exist: - correct answer ✔✔(1) There must be a
fiscal entity- assets set aside for a specific purpose and (2) there must be a double entry
accounting entity created to account for the fiscal entity.
What are the 5 types of Governmental Funds? - correct answer ✔✔General, Capital Projects,
Debt Services, Special Revenue and Permanent
What does the General Fund account for? - correct answer ✔✔Basic Services provided by the
government
