General Purpose Government
Chapter 1
Which of the following governments would be considered a general purpose government?
A)Mineral Valley State University.
B)Jackson County.
C)Billings Community Library.
D)Darien Consolidated School District.
Feedback: General purpose governments typically provide a wide array of service functions. This would be the case for a county government, whereas the other choices depict special purpose governments?entities that provide either a single service or a narrow range of services.
The organization that establishes accounting and financial reporting standards for the federal government is the:
A)Governmental Accounting Standards Board (GASB).
B)Federal Accounting Standards Advisory Board (FASAB).
C)Financial Accounting …show more content…
Or it can be an indirect expense that is allocated on a rational basis to the appropriate functions or programs. Finally, if there is no rational basis for allocating depreciation to functions or programs, a government may report depreciation expense as a separate line-item. In this case, there should be a note explaining that this line does not include depreciation reported as direct expenses of functions or programs.
A revenue or expense that is significant in amount, beyond control of management, and is both unusual in nature and infrequent in occurrence should be reported as a (an):
A)Extraordinary item.
B)Significant item.
C)Special item.
D)Unusual/infrequent item.
Feedback:
This statement defines an extraordinary item. Extraordinary items, like special items, should be reported below general revenues, in the lower section of the statement of activities.
Under which basis of accounting is it appropriate to recognize expenditures rather than expenses?
A)Cash.
B)Modified cash.
C)Accrual.
D)Modified accrual.
Feedback: Expenditures rather than expenses should be recognized and reported when incurred by a governmental fund. The basis of accounting for these funds is modified …show more content…
B)Required supplementary information schedule.
C)Note disclosure.
D)Both A and B are correct.
Feedback:
GASB standards require that a budgetary comparison be presented for the General Fund and each major special revenue fund for which a budget is legally adopted. The budgetary comparison can be a schedule (not statement) reported as part of required supplementary information reported after the notes to the financial statement (such as is shown in Illustration 3-5) or, optionally, a statement of revenues, expenditures, and changes in fund balances?budget and actual can be presented as one of the basic financial statements.
Fund balances of the General Fund at year-end represents the:
A)Citizens' equity?the amount that should be distributed to each citizen if the fund is liquidated.
B)Arithmetic difference between total assets and total liabilities of the fund, assuming there are no deferred outflows or inflows or resources.
C)Amount expected to be expended during the following year.
D)Amount available in the fund for new
Which of the following governments would be considered a general purpose government?
A)Mineral Valley State University.
B)Jackson County.
C)Billings Community Library.
D)Darien Consolidated School District.
Feedback: General purpose governments typically provide a wide array of service functions. This would be the case for a county government, whereas the other choices depict special purpose governments?entities that provide either a single service or a narrow range of services.
The organization that establishes accounting and financial reporting standards for the federal government is the:
A)Governmental Accounting Standards Board (GASB).
B)Federal Accounting Standards Advisory Board (FASAB).
C)Financial Accounting …show more content…
Or it can be an indirect expense that is allocated on a rational basis to the appropriate functions or programs. Finally, if there is no rational basis for allocating depreciation to functions or programs, a government may report depreciation expense as a separate line-item. In this case, there should be a note explaining that this line does not include depreciation reported as direct expenses of functions or programs.
A revenue or expense that is significant in amount, beyond control of management, and is both unusual in nature and infrequent in occurrence should be reported as a (an):
A)Extraordinary item.
B)Significant item.
C)Special item.
D)Unusual/infrequent item.
Feedback:
This statement defines an extraordinary item. Extraordinary items, like special items, should be reported below general revenues, in the lower section of the statement of activities.
Under which basis of accounting is it appropriate to recognize expenditures rather than expenses?
A)Cash.
B)Modified cash.
C)Accrual.
D)Modified accrual.
Feedback: Expenditures rather than expenses should be recognized and reported when incurred by a governmental fund. The basis of accounting for these funds is modified …show more content…
B)Required supplementary information schedule.
C)Note disclosure.
D)Both A and B are correct.
Feedback:
GASB standards require that a budgetary comparison be presented for the General Fund and each major special revenue fund for which a budget is legally adopted. The budgetary comparison can be a schedule (not statement) reported as part of required supplementary information reported after the notes to the financial statement (such as is shown in Illustration 3-5) or, optionally, a statement of revenues, expenditures, and changes in fund balances?budget and actual can be presented as one of the basic financial statements.
Fund balances of the General Fund at year-end represents the:
A)Citizens' equity?the amount that should be distributed to each citizen if the fund is liquidated.
B)Arithmetic difference between total assets and total liabilities of the fund, assuming there are no deferred outflows or inflows or resources.
C)Amount expected to be expended during the following year.
D)Amount available in the fund for new