Chapter 02 - Principles of Accounting and Financial Reporting for State and Local 11. The accounting system used by a state or local government must make it possible A. To present fairly the financial position and results of financial operations of the government as a whole, as well as fund financial activity in conformity with GAAP, and to demonstrate compliance with finance-related legal and contractual provisions. 12. Which of the following is not a characteristic of a fund as defined by GASB standards? C. A segregated quantity of cash and other financial resources on deposit with a designated trustee. 13. In accounting for state and local governments the modified accrual basis is required for B. Governmental funds only. 14. Under the modified accrual basis of accounting, revenues should be recognized when D. Measurable and available. 15. The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when A. Earned. 16. Which of the following funds is a governmental fund-type? C. Permanent fund. 17. Financial resources set aside to pay principal and interest on general long-term debt may be accounted for in which of the following fund types? B. Debt service fund. 18. According to GASB standards transfers should be recognized D. In the period the interfund receivable and payable arise. 19. Generally accepted accounting principles applicable to state and local governments require that B. Only those funds required by law, GASB standards, and sound financial administration should be provided. 20. Which of the following is a proprietary fund? D. Internal service fund. 21. Which of the following is a fiduciary fund? A. Investment trust fund. 22. Which of the following funds would be most appropriate for accounting for an activity that provides goods or services to the public for a fee that is intended to make the activity selfsupporting? B. Enterprise fund.
23. Which of the following funds should be used if...
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