Gov't Acc

Question 1

The primary authoritative body for determining accounting standards for
governmental funds

Answer 1

Governmental Accounting Standards Board

GASB

Question 2

The primary intended users of governmental financial statements

Answer 2

citizens/taxpayers, school boards, and investors and creditors. Internal
users are NOT considered primary users

Question 3

The 2 most important concepts of government financial reporting

Answer 3

i. accountability

ii. AND interperiod equity

Question 4

6 characteristics of effective financial reporting

Answer 4

i. understandability
ii. reliability
iii. relevance
iv. timeliness
v. consistency
vi. comparability

Question 5

5 elements of the statement of financial position

Answer 5

i. assets
ii. liabilities
iii. deferred inflow of resources
iv. deferred outflow of resources
v. net position (not net assets, not

Question 6

Governmental funds

Answer 6

i. general fund:
ii. special revenue funds:
iii. capital project funds:
iv. debt service funds:
v. permanent funds:

Question 7

General fund

Answer 7

this accounts for everything not required to belong in

another type of fund

Question 8

special Revenue funds

Answer 8

these account for revenue sources that are
restricted or committed to be spent for specific purposes other than
debt service or capital projects

Question 9

capital Project funds

Answer 9

funds that are restricted for construction or

acquisition of capital facilities

Question 10

debt Service funds

Answer 10

funds restricted or committed for debt service

principal and interest expenditures

Question 11

Permanent funds

Answer 11

accounts for endowments for which the earnings
are restricted to support government programs dedicated for a
public purpose

Question 12

GRaSPP

Answer 12

General 
special Revenue fund
debt Service fund
capital Projects
Permanent

Question 13

Proprietary Funds ( SE)

Answer 13

i. Enterprise funds: accounts for business-type activities that the public is the primary user of
ii. internal Service funds: business type activities where other government agencies are the primary user

Question 14

Fiduciary Funds (remember fiduciary means money held for others)

Answer 14

= PAPI
i. pension trust funds: assets held in trust to provide employee retirement benefits

ii. private purpose trust funds: assets held in trust to benefit
individuals

iii. investment trust funds: accounts for assets held in trust for other governments
iv. agency funds: accounts for assets held in a custodial capacity

Question 15

Modified accrual

Answer 15

cross between cash basis and accrual basis of

accounting

Question 16

Modified accrual revenue is recognized when

Answer 16

1. it’s measurable or can be reasonably estimated
2. it’s available
3. when it’s both measurable and available prior to cash receipt