Accounting and Reporting for State and Local Government

Question 1

Types of Accountability

Answer 1

Legal
Performance
Fiscal
Performance
Operational

Question 2

According to GASB, who are the primary users of financial statements.

Answer 2

-Citizenry including media and public interest groups;
-Legislative and oversight bodies;
-Investors and creditors

Question 3

What is a Primary Government?

Answer 3

A State government or general purpose local government (municipality, county, township, etc.)

Question 4

What is Special Purpose Government?

Answer 4

A school district, public utility, transit system, etc. Can also be a primary government.

Question 5

Criteria for a Special Purpose government to be a Primary government.

Answer 5

-Legally separate
-Separately elected governing body
-Fiscally independent of other state and local governments

Question 6

Private-purpose Trust Fund

Answer 6

One key for the establishment of a permanent fund compared to a private-purpose trust fund, which is a type of fiduciary fund, is the beneficiary. If the government benefits from the bequest, then a permanent fund is used. If the government is a trustee for the benefit of others, then a private-purpose trust fund is used.

Question 7

Government Merger

Answer 7

The situation where two or more governments cease to exist as legally separate entities and are combined to form one or more new governments. No consideration is given.

Question 8

Combination

Answer 8

The arrangement should result

Question 9

What are the types of government combinations?

Answer 9

-Government Merger
-Government Acquisition
-Transfer of Operations
-Disposal of Government Operations