Question 1

Regarding external financial reporting for governmental units, the basis of accounting used in the government-wide statements is the accrual basis.

Accepted Answer

Government-wide financial statements for governmental units are prepared using the accrual basis of accounting, which recognizes revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid.

Question 2

Regarding external financial reporting for governmental units, the activities to be reported in the government-wide statements are (a) governmental, (2) business-type, and (3) fiduciary.

Accepted Answer

In government-wide financial statements, only governmental and business-type activities are reported. Fiduciary activities are reported separately in the fiduciary fund financial statements, not in the government-wide statements.

Question 3

Regarding external financial reporting for governmental units, the activities to be reported in the government-wide statements are (a) governmental, (2) business-type, and (3) component units.

Accepted Answer

Government-wide financial statements for governmental units include activities from governmental, business-type, and component units, providing a comprehensive overview of the entity's financial activities.

Question 4

Regarding external financial reporting for governmental units, the financial position statement required in the government-wide statements is called a statement of net assets.

Accepted Answer

The government-wide financial statements include a Statement of Net Assets, which presents the financial position of the governmental entity, showing total assets minus liabilities to arrive at net assets.

Question 5

Regarding external financial reporting for governmental units, the financial position statement required in the government-wide statements includes both General Capital Assets and General Long-Term Liabilities.

Accepted Answer

In government-wide financial statements, both General Capital Assets and General Long-Term Liabilities are included to provide a comprehensive view of the government's overall financial position, unlike fund financial statements where these items are not reported in governmental funds.

Question 6

Regarding external financial reporting for governmental units, the financial position statement required in the government-wide statements includes General Long-term Liabilities and excludes General Capital Assets.

Accepted Answer

In government-wide financial statements, the statement of financial position includes both General Capital Assets and General Long-term Liabilities, reflecting the full economic resources and obligations of the government.

Question 7

Regarding external financial reporting for governmental units, Internal Service Funds are exempt from the major fund reporting requirements pertaining to the fund-based statements (thus the major Internal Service Funds need not be reported separately).

Accepted Answer

Internal Service Funds are not required to be reported separately in the fund-based statements.

Question 8

Regarding external financial reporting for governmental units, fiduciary activities are exempt from the major fund reporting requirements pertaining to the fund-based statements.

Accepted Answer

Fiduciary activities are reported in separate statements and are not subject to the major fund reporting requirements that apply to governmental and proprietary funds in the fund-based financial statements.

Question 9

Regarding external financial reporting for governmental units, a reconciliation must be shown of the total fund balances in the fund-based statements for governmental activities to the total fund balances for governmental activities in the government-wide statements.

Accepted Answer

The answer of Regarding external financial reporting for governmental units,...

Question 10

Regarding external financial reporting for governmental units, a reconciliation must be shown of the total fund balances in the fund-based statements for governmental activities to the total net assets for governmental activities in the government-wide statements.

Accepted Answer

This reconciliation is necessary because the fund-based statements for governmental activities are prepared using the modified accrual basis of accounting, while the government-wide statements are prepared using the full accrual basis of accounting. This difference in accounting methods requires a reconciliation to explain how the total fund balances in the fund-based statements relate to the total net assets shown in the government-wide statements.

Question 11

Regarding external financial reporting for governmental units, a reconciliation must be shown of the total change in fund balances in the fund-based statements for governmental activities to the total change in net assets for governmental activities in the government-wide statements.

Accepted Answer

This reconciliation is necessary because the fund-based statements for governmental activities are prepared using the modified accrual basis of accounting, while the government-wide statements are prepared using the full accrual basis. The reconciliation explains the differences between the two sets of statements, ensuring users understand how the changes in fund balances relate to changes in net assets.

Question 12

Regarding external financial reporting for governmental units, a reconciliation must be shown of the total change in fund balances in the fund-based statements for governmental activities to the total change in fund balances for governmental activities in the government-wide statements.

Accepted Answer

The answer of Regarding external financial reporting for governmental units,...

Question 13

Regarding external financial reporting for governmental units, budgetary comparison financial statements are presented in the fund-based statements.

Accepted Answer

The answer of Regarding external financial reporting for governmental units,...

Question 14

Regarding external financial reporting for governmental units, budgetary comparison financial statements are presented as "Required Supplementary Information" (RSI).

Accepted Answer

Budgetary comparison financial statements for governmental units are indeed considered Required Supplementary Information (RSI) according to generally accepted accounting principles (GAAP) for governments. This RSI provides a comparison of the original and final budget amounts with the actual financial results.

Question 15

Regarding external financial reporting for governmental units, "Required supplementary Information" includes both (1) budgetary financial statements and (2) combining statements.

Accepted Answer

Required supplementary information includes budgetary financial statements but not combining statements.

Question 16

Regarding external financial reporting for governmental units, "Required Supplementary Information" includes both (1) budgetary financial statements and (2) the management discussion and analysis.

Accepted Answer

Required Supplementary Information (RSI) for governmental units typically includes budgetary comparison schedules and the Management's Discussion and Analysis (MD&A) as part of the financial reporting process.

Question 17

Regarding external financial reporting for governmental units, the government-wide statement of position must be in a net assets format.

Accepted Answer

The answer of Regarding external financial reporting for governmental units,...

Question 18

Regarding external financial reporting for governmental units, the government-wide statement of position may be in either a "classified" or "unclassified" format.

Accepted Answer

The government-wide statement of net position, which reports on all of the assets and liabilities of the governmental entity, can be presented in either a classified or unclassified format according to the GASB (Governmental Accounting Standards Board) standards. Classified format separates current and noncurrent assets and liabilities, while unclassified format does not make this distinction.

Question 19

Regarding external financial reporting for governmental units, interfund balances and transactions are usually eliminated in presenting the government-wide statements.

Accepted Answer

In government-wide financial statements, interfund balances and transactions are typically eliminated to present a consolidated view of the government's financial position, as these statements aim to provide information about the reporting government as a whole, rather than its individual parts.

Question 20

Regarding external financial reporting for governmental units, no distinction is made in the government-wide Statement of Activities between (1) interfund transfers that are made annually to subsidize an operation and (2) interfund transfers made to establish a new fund.

Accepted Answer

In the government-wide Statement of Activities, interfund transfers are aggregated and reported in a single line item, without distinguishing between the purpose of the transfers, such as whether they are for subsidizing operations or establishing new funds.

Quiz 25: Governmental Accounting: The Special-Purpose Funds and Special General Ledger

Regarding external financial reporting for governmental units, the basis of accounting used in the government-wide statements is the accrual basis.

Regarding external financial reporting for governmental units, the activities to be reported in the government-wide statements are (a) governmental, (2) business-type, and (3) fiduciary.

Regarding external financial reporting for governmental units, the activities to be reported in the government-wide statements are (a) governmental, (2) business-type, and (3) component units.

Regarding external financial reporting for governmental units, the financial position statement required in the government-wide statements is called a statement of net assets.

Regarding external financial reporting for governmental units, the financial position statement required in the government-wide statements includes both General Capital Assets and General Long-Term Liabilities.

Regarding external financial reporting for governmental units, the financial position statement required in the government-wide statements includes General Long-term Liabilities and excludes General Capital Assets.

Regarding external financial reporting for governmental units, Internal Service Funds are exempt from the major fund reporting requirements pertaining to the fund-based statements (thus the major Internal Service Funds need not be reported separately).

Regarding external financial reporting for governmental units, fiduciary activities are exempt from the major fund reporting requirements pertaining to the fund-based statements.

Regarding external financial reporting for governmental units, a reconciliation must be shown of the total fund balances in the fund-based statements for governmental activities to the total fund balances for governmental activities in the government-wide statements.

Regarding external financial reporting for governmental units, a reconciliation must be shown of the total fund balances in the fund-based statements for governmental activities to the total net assets for governmental activities in the government-wide statements.

Regarding external financial reporting for governmental units, a reconciliation must be shown of the total change in fund balances in the fund-based statements for governmental activities to the total change in net assets for governmental activities in the government-wide statements.

Regarding external financial reporting for governmental units, a reconciliation must be shown of the total change in fund balances in the fund-based statements for governmental activities to the total change in fund balances for governmental activities in the government-wide statements.

Regarding external financial reporting for governmental units, budgetary comparison financial statements are presented in the fund-based statements.

Regarding external financial reporting for governmental units, budgetary comparison financial statements are presented as "Required Supplementary Information" (RSI).

Regarding external financial reporting for governmental units, "Required supplementary Information" includes both (1) budgetary financial statements and (2) combining statements.

Regarding external financial reporting for governmental units, "Required Supplementary Information" includes both (1) budgetary financial statements and (2) the management discussion and analysis.

Regarding external financial reporting for governmental units, the government-wide statement of position must be in a net assets format.

Regarding external financial reporting for governmental units, the government-wide statement of position may be in either a "classified" or "unclassified" format.

Regarding external financial reporting for governmental units, interfund balances and transactions are usually eliminated in presenting the government-wide statements.

Regarding external financial reporting for governmental units, no distinction is made in the government-wide Statement of Activities between (1) interfund transfers that are made annually to subsidize an operation and (2) interfund transfers made to establish a new fund.