ACCY 161 MT

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emach532
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238055
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ACCY 161 MT
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2013-10-01 06:44:03
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ACCY 161
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Government Accounting
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  1. The cornerstone of governmental accounting includes:
    A. reliability and accountability and understandability
    B. accountability
    C. both reliability and accountability
    D. understandability
    E. reliability
    B. accountability
    (this multiple choice question has been scrambled)
  2. Which of the following is not a characteristic of a fund as defined by GASB standards?
    A. an accounting entity
    B. all are characteristics of a fund
    C. a segregated quantity of cash and other financial resources on deposit with a designated trustee
    D. a fiscal entity
    C. a segregated quantity of cash and other financial resources on deposit with a designated trustee
    (this multiple choice question has been scrambled)
  3. The correct term for the liabilities in a governmental fund statement would be?
    A. all are correct
    B. legal liabilities
    C. current liabilities
    D. fund liabilities
    D. fund liabilities
    (this multiple choice question has been scrambled)
  4. Fiscal accountability is found in:
    A. both a. and b.
    B. the governmental-wide financial statements
    C. the governmental fund financial statements
    D. all the fund financial statements
    E. both a. and c.
    C. the governmental fund financial statements
    (this multiple choice question has been scrambled)
  5. Fiscal accountability includes:
    A. both whether or not the government has raised and spent funds in accordance with an approved budget and compliance with laws and regulations
    B. operational efficiency
    C. whether or not the government has raised and spent funds in accordance with an approved budget and compliance with laws and regulations and operational efficiency
    D. whether or not the government has raised and spent funds in accordance with an approved budget
    E. compliance with laws and regulations
    A. both whether or to the government has raised and spent funds in accordance with an approved budget and compliance with laws and regulations
    (this multiple choice question has been scrambled)
  6. The responsibility of governments to justify that their actions in the current period have complied with public decisions concerning the raising and spending of public monies in the short-term is known as:
    A. legal accountability
    B. operational accountability
    C. fiduciary responsibility
    D. fiscal accountability
    D. fiscal accountability
    (this multiple choice question has been scrambled)
  7. The accounting system used by a state or local government must make it possible:
    A. to provide Web-based bond offering statements to investment firms
    B. to prepare consolidated accrual basis statements for the government as a whole
    C. to present fairly the financial position and result 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
    D. to prepare financial statements as required by the Financial Accounting Standards Board
    C. 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
    (this multiple choice question has been scrambled)
  8. The accountability focus for the governmental funds is:
    A. operational
    B. accrual
    C. fiscal
    D. modified accrual
    C. fiscal
    (this multiple choice question has been scrambled)
  9. The account classification for debt service, capital expenditures and current expenditures is called:
    A. outflows
    B. object
    C. uses (related to the sources of and uses classification)
    D. character
    e. none of the above
    D. character
    (this multiple choice question has been scrambled)
  10. Budgetary accounting is used in the:
    A. government-wide accounting
    B. proprietary funds
    C. fiduciary funds
    D. governmental funds
    E. a. and b. and c. all use budgetary accounting
    F. budgetary accounting is used in all the financial statements
    D. governmental funds
    (this multiple choice question has been scrambled)
  11. The short-term view of government to see if they have raised and spent financial resources in accordance with budget plan is:
    A. economic resources focus
    B. interperiod equity
    C. operational accountability
    D. fiscal accountability
    D. fiscal accountability
    (this multiple choice question has been scrambled)
  12. The types of revenues to be reported at the government-wide level are:
    A. business types
    B. governmental types
    C. a. and b. are correct
    D. program types
    E. b. and d. are correct
    F. general types
    E. b. and d. are correct (program and general types)
    (this multiple choice question has been scrambled)
  13. Whether governments use their resources efficiently and effectively in meeting operating objectives is:
    A. fiscal accountability
    B. current financial resources focus
    C. interperiod equity
    D. operational accountability
    E. accrual accounting
    D. operational accountability
    (this multiple choice question has been scrambled)
  14. In Chapter 2 there is an illustration that shows:
    A. for the fund financial statements there are 2 components
    B. for the government-wide statements there are 3 components for the primary government
    C. there are 2 sets of financial statements for the GASB 34 reporting model
    D. the financial statement names for the government-wide and the fund financial statements are the same
    C. there are 2 sets of financial statements for the GASB 34 reporting model
    (this multiple choice question has been scrambled)
  15. The accountability focus for the government-wide statement is:
    A. accrual
    B. modified accrual
    C. operational
    D. fiscal
    C. operational
    (this multiple choice question has been scrambled)
  16. The basis accounting for the government-wide statement is:
    A. fiscal
    B. accrual
    C. modified accrual
    D. operational
    B. accrual
    (this multiple choice question has been scrambled)
  17. When a purchase order is issued:
    A. purchases is debited
    B. expenditures is credited
    C. encumbrances is debited
    D. there is no accounting entry
    C. encumbrances is debited
    (this multiple choice question has been scrambled)
  18. When goods are received that were on a purchase order:
    A. vouchers payable is credited
    B. a. and b. and c. are all possible entries
    C. accounts payable is credited
    D. cash is credited
    A. vouchers payable is credited
    (this multiple choice question has been scrambled)
  19. For governmental accounting and reporting, the reporting entity is:
    A. the primary government and the component units
    B. the primary government and the component units and other small units with the geographical boundaries of the primary government
    C. as directed by the state legislation that established the primary government
    D. the primary government only
    A. the primary government and the component units
    (this multiple choice question has been scrambled)
  20. The two sets of statements included for the general purpose financial statements are:
    A. balance sheet and income statements
    B. fund statements and the accrual statements
    C. fund statements and the government-wide statements
    D. fund statements and the combined statements
    e. None of the above
    C. fund statement and the government-wide statements
    (this multiple choice question has been scrambled)
  21. The start of the dual track system begins with:
    A. budgetary accounting entries
    B. the purchase orders
    C. the end of the prior fiscal year
    D. the start of the fiscal year
    A. budgetary accounting entries
    (this multiple choice question has been scrambled)
  22. In Chapter 3 there is an illustration that shows:
    a. estimated revenues have a credit balance
    b. estimated revenues have a debit balance
    c. appropriations have a credit balance
    d. appropriations have a debit balance
    e. both a. and d. are correct
    f. both b. and c. are correct
  23. Whether current-year revenues are sufficient to pay for services provided that year and whether future taxpayers will be required to assume burdens for services previously provided is:
    A. operational accountability
    B. current financial resources focus
    C. interperiod equity
    D. economic resources focus
    E. fiscal accountability
    C. interperiod equity
    (this multiple choice question has been scrambled)
  24. The following are governmental funds:
    A. debt service
    B. special
    C. b. and c. are correct
    D. fiduciary
    E. a. and b. and c. are correct
    C. b. and c. are correct (special and debt service funds)
    (this multiple choice question has been scrambled)
  25. The basis accounting for governmental funds is:
    A. operational
    B. modified accrual
    C. accrual
    D. fiscal
    B. modified accrual
    (this multiple choice question has been scrambled)
  26. The first step in the logical flow of the budgetary control is:
    A. appropriations
    B. encumbrances
    C. expenditures
    D. disbursements approval
    A. appropriations
    (this multiple choice question has been scrambled)
  27. The GASB principles:
    A. amend some of the FASB principles
    B. are in addition to some of the FASB principles
    C. substitute for some of the FASB principles
    B. are in addition to some of the FASB principles
    (this multiple choice question has been scrambled)
  28. Governmental fund accounting is characterized by:
    A. economic resources and modified accrual accounting
    B. current financial resources and accrual accounting
    C. economic resources and accrual accounting
    D. current financial resources and modified accrual accounting
    D. current financial resources and modified accrual accounting
    (this multiple choice question has been scrambled)
  29. In Chapter 2 an illustration shows that:
    A. both a. and b. are correct
    B. there are 2 types of measurement focuses
    C. the basis of accounting are of 2 types
    D. there are 2 types of accountability focus
    E. a. and b. and c. are all correct
    E. a. and b. and c. are all correct (2 types of measurement focuses, 2 types of accounting, and 2 type of accountability)
    (this multiple choice question has been scrambled)
  30. An entry to the encumbrances account is with:
    A. can be either an estimated amount or the actual amount
    B. the estimated amount
    C. the actual amount
    B. the estimated amount
    (this multiple choice question has been scrambled)
  31. General capital assets used by departments accounted for by the General Fund of a governmental unit should be capitalized in:
    A. The governmental activities journal
    B. the General Fund
    C. the general capital assets fund
    D. the business-type activities journal
    A. the governmental activities journal
    (this multiple choice question has been scrambled)
  32. Which of the following funds is a governmental fund-type?
    A. permanent fund
    B. enterprise fund
    C. private-purpose trust fund
    D. internal service fund
    A. permanent fund
    (this multiple choice question has been scrambled)
  33. In accounting for state and local governments, the modified accrual basis is recommended for:
    A. proprietary funds only
    B. governmental funds only
    C. all funds
    D. proprietary and fiduciary funds
    B. governmental funds only
    (this multiple choice question has been scrambled)
  34. The correct term for the liabilities in a governmental fund statement would be?
    A. all are correct
    B. current liabilities
    C. legal liabilities
    D. fund liabilities
    D. fund liabilities
    (this multiple choice question has been scrambled)
  35. On what should the government-wide financial statements report?
    a. net assets and results of financial operations of the government as a whole
    b. operational accountability
    c. the cost of government services
    d. all of the above
    d. all of the above
  36. The fund financial statements for governmental funds should include a:
    A. statement of cash flows
    B. a schedule of fixed assets by class
    C. balance sheet for governmental funds
    D. statement of revenues, expenses, and changes in fund net assets
    C. balance sheet for governmental funds
    (this multiple choice question has been scrambled)
  37. The modified accrual basis of accounting is used in:
    A. all the fund financial statements
    B. the governmental fund financial statements
    C. only in the General Fund financial statements
    d. none of the above
    B. the governmental fund financial statements
    (this multiple choice question has been scrambled)
  38. The measurement focus that should be used in preparing fund financial statements is the:
    A. current financial resources measurement focus
    B. economic financial resources measurement focus
    C. fund accounting measurement focus
    d. none of the above
    B. economic financial resources measurement focus
    (this multiple choice question has been scrambled)
  39. Special-purpose governments provide a wide range of services to their residents, such as:
    a. public safety
    b. cultural and recreation
    c. health and welfare
    d. all of the above
    e. none of the above
    e. none of the above
  40. The MD&A refers to:
    A. only the government-wide financial statements due to its long-term nature
    B. more than just the fund financial statements and the government-wide financial statements
    C. both the fund financial statements and the government-wide financial statements
    D. only the various fund financial statements
    C. both the fund financial statements and the government-wide financial statements
    (this multiple choice question has been scrambled)
  41. All un-matured long-term liabilities of the government should be accounted for in:
    A. the General Fund, the governmental fund and the government-wide statements
    B. the governmental fund financial statements
    C. the General Fund
    D. both the general fund and the governmental fund statements
    E. the government-wide financial statements
    E. the government-wide financial statements
    (this multiple choice question has been scrambled)
  42. With regard to depreciation of general capital assets:
    A. no depreciation can be recorded in any governmental fund, nor is it permissible to record depreciation expense in the governmental activities accounts
    B. depreciation expense should be charged in the appropriate governmental funds, and reported in the governmental activities accounts
    C. no depreciation can be recorded in any governmental fund, but depreciation expense must be reported in the governmental activities accounts
    D. depreciation expense must be recorded in the governmental fund, but no depreciation expense can be recorded in the governmental activities accounts
    C. no depreciation can be recorded in any governmental fund, but depreciation expense must be reported in the governmental activities accounts
    (this multiple choice question has been scrambled)
  43. The permanent fund is used for:
    A. only governmental funds
    B. all trust funds
    C. holding funds for investment purposes only
    D. public-purpose trust funds
    e. none of the above
    D. public-purpose trust funds
    (this multiple choice question has been scrambled)
  44. Which of the following accounts of a government is credited when a purchase order is approved?
    A. cash
    B. reserve for encumbrances
    C. vouchers payable
    D. encumbrances
    E. appropriations
    B. reserve for encumbrances
    (this multiple choice question has been scrambled)
  45. Which of the following funds should be used if resources provided by a federal grant must be segregated and used for counseling of youthful offenders?
    A. private-purpose trust fund
    B. special revenue fund
    C. internal service fund
    D. enterprise fund
    B. special revenue fund
    (this multiple choice question has been scrambled)
  46. The measurement focus and basis of accounting of special revenue funds are most similar to:
    A. governmental funds and the fiduciary fund
    B. proprietary funds
    C. both the general fund and the permanent fund
    D. permanent funds and the internal service fund
    e. none of the above
    C. both the general fund and the permanent fund
    (this multiple choice question has been scrambled)
  47. Interfund transfers and debt issue proceeds received by the General Fund would be recorded as:
    A. other financing activities
    B. other financing sources
    C. other proceeds
    D. would not be recorded by the General Fund - only on the government-wide side
    B. other financing sources
    (this multiple choice question has been scrambled)
  48. Program revenues and general revenues:
    A. are combined on the government-wide statement
    B. are not found on the government-wide statements
    C. are shown separately on the government-wide statement
    d. none of the above are valid statements
    C. are shown separately on the government-wide statement
    (this multiple choice question has been scrambled)
  49. Which of the following terms indicate or relate to the idea of a separate government or agency that is combined for the purposes of the whole entity:
    A. modified accrual basis
    B. component unit
    C. discrete presentation
    D. blended presentation
    E. fund equity
    F. reporting entity
    G. accrual basis
    B. component unit
    (this multiple choice question has been scrambled)
  50. Which of the following would be classified as a general revenue?
    A. parking meter fees
    B. special assessment charges for snow removal
    C. library fines
    D. fuel taxes earmarked for maintenance of roads and bridges
    D. fuel taxes earmarked for maintenance of roads and bridges
    (this multiple choice question has been scrambled)
  51. When the expenditure budget for the General Fund is recorded, the required journal entry will include:
    A. a debit to encumbrances
    B. both a debit to estimated revenues and a credit to appropriations
    C. a credit to appropriations
    D. a debit to estimated revenues
    e. none of the above
    C. a credit to appropriations
    (this multiple choice question has been scrambled)
  52. One of the minimum requirements for general-purpose external financial reporting is(are):
    A. both a. and c. are correct
    B. statistical information
    C. other supplementary information, such as combining and individual fund statements
    D. consolidated financial statements
    E. management's discussion and analysis (MD&A)
    E. management's discussion and analysis (MD&A)
    (this multiple choice question has been scrambled)
  53. A tax is assessed to each parcel of property to fund a new park as a result of a recent election. These funds would be most properly accounted for by:
    A. a special revenue fund
    B. a trust fund
    C. a permanent fund
    D. the General Fund
    E. none of these funds
    A. a special revenue fund
    (this multiple choice question has been scrambled)
  54. Under the modified accrual basis of accounting, revenues should be recognized when:
    a. earned
    b. collected in cash
    c. authorized by the budget ordinance
    d. none of the above
    e. both a. and b. are fulfilled
    d. none of the above
  55. Which of the following is not a budgetary account?
    A. estimated revenues
    B. reserve for encumbrances
    C. all are budgetary accounts
    D. appropriations
    E. encumbrances
    B. reserve for encumbrances
    (this multiple choice question has been scrambled)
  56. Which of the following steps in the acquisition of goods and services by an activity accounted for by the General Fund occurs first?
    A. expenditure
    B. appropriation
    C. expense
    D. disbursement
    E. encumbrance
    B. appropriation
    (this multiple choice question has been scrambled)
  57. The expenditures control account of a governmental unit is debited when:
    A. the budget is recorded
    B. supplies previously encumbered are received
    C. supplies are ordered
    D. the invoice is paid
    B. supplies previously encumbered are received
    (this multiple choice question has been scrambled)
  58. The difference between an interfund loan and an interfund transfer is:
    A. if it will be repaid
    B. both c. and d.
    C. the amount
    D. when it will be repaid
    E. if it is between the three fund types or not
    A. if it will be repaid
    (this multiple choice question has been scrambled)
  59. When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order, the encumbrance account is:
    A. debited for the estimated price on the purchase order
    B. credited for the actual price for the supplies received
    C. debited for the actual price for the supplies received
    D. credited for the estimated price on the purchase order
    D. credited for the estimated price on the purchase order
    (this multiple choice question has been scrambled)
  60. Which of the following information should be included in the financial section of a comprehensive annual financial report?
    A. #1 and #3
    B. #1 and #3 and #2
    C. #1 the basic financial statements, including notes thereto
    D. #2 tables and charts showing demographic and economic data
    E. #3 a description of the government including elected officials
    C. #1 the basic financial statements, including noted thereto
    (this multiple choice question has been scrambled)
  61. Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program or produce a net revenue?
    A. indirect revenues
    B. program revenues
    C. extraordinary items
    D. general revenues
    B. program revenues
    (this multiple choice question has been scrambled)
  62. Imposed tax revenues:
    A. both a. and c. are correct
    B. include sales taxes
    C. are exchange transactions
    D. include property taxes
    E. all are correct
    D. include property taxes
    (this multiple choice question has been scrambled)
  63. Derived tax revenues:
    A. include property taxes
    B. both b. and c. are correct
    C. all are correct
    D. are exchange transactions
    E. include sales taxes
    E. include sales taxes
    (this multiple choice question has been scrambled)
  64. Other financing sources and uses are:
    A. b. and c. are correct
    B. found in the government-wide financial statements
    C. found in the governmental fund financial statements
    D. accounted for with the cash basis accounting
    E. a. and c. are correct
    C. found in the governmental fund financial statements
    (this multiple choice question has been scrambled)
  65. An internal allocation of funds done on a periodic basis to prevent overspending in the early part of the budget period is called a(an):
    A. allotment
    B. appropriation
    C. allocation
    D. periodic appropriation
    e. none of the above
    A. allotment
    (this multiple choice question has been scrambled)
  66. Recognizing revenues when measurable and available is:
    A. modified cash
    B. modified accrual
    C. both a. and d.
    D. accrual
    E. budgetary
    B. modified accrual
    (this multiple choice question has been scrambled)
  67. In accounting for state and local governments, the modified accrual basis is required for:
    A. governmental funds only
    B. all the funds in the governmental entity
    C. just the general fund
    D. the major funds only
    A. governmental funds only
    (this multiple choice question has been scrambled)
  68. Which of the following terms indicate or relate to the idea of the primary government and all related units:
    A. accrual basis
    B. reporting entity
    C. governmental activities
    D. modified accrual basis
    E. blended presentation
    F. fund equity
    G. component unit
    H. discrete presentation
    B. reporting entity
    (this multiple choice question has been scrambled)
  69. When the entire budget is approved there will be an entry to the encumbrance account with a:
    A. either a debit or a credit
    B. debit
    C. neither a debit or a credit - no entry is made
    D. credit
    C. neither a debit or a credit - no entry is made
    (this multiple choice question has been scrambled)
  70. When the entire budget is approved there will be an entry to the fund balance account with a:
    A. credit
    B. either a debit or a credit
    C. neither a debit or a credit - no entry is made
    D. debit
    B. either a debit or a credit
    (this multiple choice question has been scrambled)
  71. When the entire budget is approved there will be an entry to the estimated revenue account with a:
    A. either a debit or a credit
    B. credit
    C. debit
    D. neither a debit or a credit - no entry is made
    C. debit
    (this multiple choice question has been scrambled)
  72. When the entire budget is approved there will be an entry to the appropriations account with a:
    A. credit
    B. debit
    C. either a debit or a credit
    D. neither a debit or a credit - no entry is made
    A. credit
    (this multiple choice question has been scrambled)
  73. When the entire budget is approved there will be an entry to the reserve for encumbrances account with a:
    A. credit
    B. either a debit or a credit
    C. debit
    D. neither a debit or a credit - no entry is made
    D. neither a debit or a credit - no entry is made
    (this multiple choice question has been scrambled)
  74. When a purchase order is cancelled there will be an entry to the reserve for encumbrances account with a:
    A. neither a debit or a credit - no entry is made
    B. either a debit or a credit
    C. credit
    D. debit
    D. debit
    (this multiple choice question has been scrambled)
  75. When a purchase order is cancelled there will be an entry to the encumbrances account with a:
    A. either a debit or a credit
    B. debit
    C. credit
    D. neither a debit or a credit - no entry is made
    C. credit
    (this multiple choice question has been scrambled)
  76. When a purchase order is cancelled there will be an entry to the appropriations account with a:
    A. neither a debit or a credit - no entry is made
    B. either a debit or a credit
    C. debit
    D. credit
    A. neither a debit or a credit - no entry is made
    (this multiple choice question has been scrambled)
  77. When a purchase order is issued there will be an entry to the reserve for encumbrances account with a:
    A. neither a debit or a credit - no entry is made
    B. credit
    C. debit
    D. either a debit or a credit
    B. credit
    (this multiple choice question has been scrambled)
  78. When a purchase order is issued there will be an entry to the encumbrances account with a:
    A. either a debit or a credit
    B. credit
    C. neither a debit or a credit - no entry is made
    D. debit
    D. debit
    (this multiple choice question has been scrambled)
  79. Harrison County receives a $100 payment on property taxes for the current year, the actual revenue for the general fund will include an entry of a:
    a. debit
    b. credit
    c. either a debit or a credit
    c. neither a debit or a credit - no entry is made
    d. neither a debit or a credit - no entry is made
  80. Harrison County receives a $100 payment on property taxes for the current year, the cash account for the general fund will include an entry of a:
    A. credit
    B. neither a debit or a credit - no entry is made
    C. either a debit or a credit
    D. debit
    D. debit
    (this multiple choice question has been scrambled)
  81. Harrison County receives a $100 payment on sales taxes for the current year, the program revenue account will include an entry of a:
    A. credit
    B. neither a debit or a credit - no entry is made
    C. debit
    D. either a debit or a credit
    B. neither a debit or a credit - no entry is made
    (this multiple choice question has been scrambled)
  82. Harrison County receives a $100 payment on sales taxes for the current year, the general revenue account will include an entry of a:
    A. credit
    B. neither a debit or a credit - no entry is made
    C. debit 
    D. either a debit or a credit
    A. credit
    (this multiple choice question has been scrambled)
  83. Harrison County receives goods that were ordered in the amount of $100, the expenditure account in the general fund will include an entry of a:
    A. credit
    B. either a debit or a credit
    C. neither a debit or a credit - no entry is made
    D. debit
    D. debit
    (this multiple choice question has been scrambled)
  84. Accountability
    The requirement for government to answer to its citizenry—to justify the raising of public resources and expenditure of those resources. Also, in GASB’s view, the obligation to report whether the government operated within appropriate legal constraints; whether resources were used efficiently, economically,and effectively; whether current-year revenues were sufficient to pay for the services provided in the current year; and whether the burden for services previously provided will be shifted to future taxpayers.
  85. Accrual basis
    Revenues are recorded when earned and expenditures (or expenses) are recorded as soon as they result in liabilities, notwithstanding the receipt of cash in another accounting period.
  86. Activity
    Specific work performed by organizational components of a government for which the government is responsible. For example,food inspection is an activity performed in the dischargeof the health function.
  87. Allotment
    Part of an appropriation that may be encumbered or expended during an allotment period.
  88. Blended presentation
    Method of reporting a component unit in a similar manner to the financial data of the primary government; component unit data are combined with the fund types of the primary government and reported in the same columns as the data for the primary government except General Funds.
  89. Budget accounts
    Broad accounts for which appropriations are made; not the same as standard general ledger accounts.
  90. Appropriations
    Authorizations granted by a legislative body to incur liabilities for purposes specified in the Appropriation Act; usually limited in the amount and time when it may be expended.
  91. Character
    Basis for distinguishing expenditures according to periods they benefit.
  92. Component units
    Separate governments, agencies, or not-for-profit corporations that are combined with other component units to constitute the reporting entity.
  93. Current financial resources measurement focus
    Governmental funds currently measure and report available financial resources like cash or items expected to be converted into cash during the current period, or soon after, to pay current liabilities.
  94. Discrete presentation
    Method of reporting component unit financial data in column(s) separate from the financial data of the primary government.
  95. Derived revenue
    Non-exchange transactions, such as income or sales taxes.
  96. Economic resources measurement focus
    Government-wide attention to measuring total economic resources that flow in and out of the government.
  97. Estimated other financing uses
    Financial resources estimated to be disbursed or accrued during a period by the fund for transfer to other funds.
  98. Estimated revenue
    Accrual basis accounts: estimated revenues accruing during a given period regardless of whether or not they will be collected then.

    Modified accrual basis accounts: estimated revenues that are measurable and available.

    Cash basis accounts: estimated revenues that will be collected during a given period.
  99. Encumbrances
    To record estimated purchase orders, contracts, or salary commitments chargeable to an appropriation. The account is credited when goods or services are received and the actual expenditure of the appropriation is known.
  100. Exchange transaction
    Each party receives direct tangible benefits for the resources provided. For example, sales between a buyer and a seller.
  101. Expenditure
    Recorded when liabilities are incurred after an appropriation.

    Accrual/modified accrual basis: cost of goods or services, paid or unpaid, including expenses, provision for debt retirement not reported as a liability of the fund from which retired, and capital outlays.

    Cash basis: only actual cash disbursements for these purposes.
  102. Expense
    Charge incurred, paid or unpaid, for operation, maintenance, interest, and other charges that benefit the current period.
  103. Fiscal accountability
    Current-period financial position and budgetary compliance reported in fund-type financial statements.
  104. Function
    Group of related activities aimed at accom-plishing a major service for which a government is responsible. For example, public health is a function.
  105. Fund
    Fiscal/accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equities or balances, segregated for the purpose of carrying on specific objectives due to special regulations, restrictions, or limitations.
  106. Fund accounting
    Accounting system organized on the basis of funds, each considered a separate accounting entity; accomplished with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses. Resources are allocated to and recorded in individual funds based on the purpose they are being spent and how the spending is controlled; used by state/local government and internally by not-for-profits whose resources are restricted by donors/grantors.
  107. General fund
    Used to account for all transactions not accounted for in another fund. Note: The General Fund is used to account for the ordinary operations of a government that are financed from taxes and other general revenues.
  108. General purpose governments
    Provide many categories of services to, such as states, counties, municipalities, and townships. Typical services include public safety, road maintenance, health and welfare.
  109. General revenues
    Not directly linked to any specific function; do not produce a net revenue.
  110. Interfund transfers
    Amounts transferred from one fund to another.
  111. Interfund loans
    Loans made by one fund to another.
  112. Imposed revenue
    A category of non-exchange revenue, such as property taxes and most fines and forfeitures.
  113. Interperiod equity
    Extent to which current-period revenues are enough to pay for current-period services.
  114. Modified accrual
    Required for governmental funds; revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred.
  115. Object
    Distinguishing expenditures by the article purchased or service obtained (as distinguished from the results obtained from expenditures). Examples are personal services, contractual services, materials, and supplies.
  116. Operational accountability
    Operating results and short- and long-term financial position and the cost of providing services from an economic perspective reported in government-wide financial statements.
  117. Other financing sources
    Operating statement classification in which inflows other than revenues are reported. For example, proceeds of long-term debt and transfers in.
  118. Other financing uses
    Operating statement classification in which outflows other than expenditures are reported. For example, transfers out.
  119. Permanent fund
    Restricted resource fund where only earnings, and not principal, may be used for public programs; does not include private-purpose trust funds, in which the principal or earnings is used for the benefit of individuals, private organizations, or other governments.
  120. Primary government
    State/local general-purpose government; also, a special-purpose government that has a separately elected governing body, which is legally and fiscally independent of other state or local governments.
  121. Programs
    Activities, operations, or organizational units grouped together because they share purposes or objectives.
  122. Program revenue
    Revenue linked to a specific function/program and reported separately from general revenue on the government-wide statement of activities.
  123. Reporting entity
    The primary government and all related component units.
  124. Revenue
    Inflow of economic resources from operations  services/activities rather than from interfund transfers and debt issue proceeds.
  125. Special purpose governments
    Provide only a single function or a limited number of functions, such as independent school districts and special districts.
  126. Special revenue fund
    Specific revenue source, for a specified purpose other than debt service or capital projects. An example is a fuel tax fund used to finance highway and road construction. After the fund is established, it usually continues until discontinued or revised by legislative authority.
  127. Tax anticipation notes
    Notes (warrants) issued in anticipation of collection of taxes usually retirable only from tax collections.
  128. Three types of funds found in the governmental funds are:
    A. governmental, proprietary, trust
    B. general, special revenue, allocated
    C. general, proprietary, fiduciary
    D. general, permanent, special revenue
    E. governmental, business, trust
    A. governmental, proprietary, trust
    (this multiple choice question has been scrambled)
  129. Program revenues:
    A. all of these characterize program revenue
    B. are used to calculate net expenses
    C. can be from exchange or non-exchange transactions
    D. are usually in the form of a tax
    B. are used to calculate net expenses
    (this multiple choice question has been scrambled)
  130. Long-term assets like vehicles would be accounted for with:
    A. all of these would be used to account for long-term assets
    B. fiscal accountability
    C. the current financial resources focus
    D. economic resources focus
    E. both the current financial resources focus and fiscal accountability
    D. economic resources focus
    (this multiple choice question has been scrambled)
  131. An example of other financing sources would be:
    A. transfers from other funds
    B. grant funds from another governmental agency
    C. proceeds from the borrowings
    D. both transfers from other funds and proceeds from borrowings
    E. all of these are other financing sources
    D. both transfers form other funds and proceeds from borrowings
    (this multiple choice question has been scrambled)

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