F8 Governmental Accounting Flashcards
economic Resources Measurement Focus and Accrual Basis of Accounting would be most appropriate for which fund as used in the fund financial statements
The internal service fund’s fund financial statement would be prepared using an economic resources measurement focus and the accrual basis of accounting. The governmental funds, which include the general fund, permanent fund and capital projects fund, would be prepared using the current financial resources measurement focus and the modified accrual basis of accounting.
Which of the following characteristics of service efforts and accomplishments is the most difficult to report for a governmental entity
Relevance means the information must bear a logical relationship with the needs for its purpose. It must also be reliable. The achievement of this reporting objective is more difficult to establish than it is to demonstrate consistency (adherence to the consistent application of GAAP from year to year) or comparability (the use of GAAP in a manner comparable to other governments). The timeliness objective requires that reports be issued early enough to facilitate timely decisions. The timeliness of reporting is relatively easy to demonstrate.
