,DOWNLOAD THE Test Bank for Accounting for Governmental and Nonprofit Entit
N N N N N N N N N N
ies 17th Edition Reck N N N
Chapter 02 N
N Principles of Accounting and Financial Reporting for State and Local
N N N N N N N N N
Governments
TrueN/NFalseNQuestions
1. GovernmentalNactivitiesNareNto NbeNclassified NasNgovernmentalNor Nb usiness-type.
True False
2. GovernmentalNfundsNareNidenticalNto NgovernmentalNactivities,NproprietaryNfundsNareNidenticalNt
o Nbusiness-
typeNactivities,Nand NfiduciaryNfundsNareNidenticalNto NfiduciaryNactivitiesNofNaNgovernment.
True False
3. OnlyNthoseNgovernmentalNand NproprietaryNfundsNthatNmeetNtheNGASBNsizeN criteria Nfor Nmajor Nfu
ndsNareNreported NinNseparateNcolumnsNofNtheNgovernmentalNand NproprietaryNfund NfinancialNstate
ments.
True False
4. EconomicNresourcesNareNcashNor NitemsNexpected Nto NbeNconverted Ninto NcashNduring NtheNcurr
entNperiod,Nor NsoonNenoughNthereafter Nto NpayNcurrentNperiod Nliabilities.
True False
5. GovernmentalNfundsNaccountNfor NassetsNbutNnotNtheNliabilities.
True False
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CopyrightN©N2016 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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,DOWNLOAD THE Test Bank for Accounting for Governmental and Nonprofit Entit
N N N N N N N N N N
ies 17th Edition Reck N N N
6. TheNtypesNofNfundsNthatNmayNbeNused NinNgovernmentalNaccounting NareNclassified Ninto NtheNth
reeNcategoriesNofNgovernmental,Nproprietary,Nand Nfiduciary.
True False
7. TheNgovernmentalNfundsNcategoryNincludesNtheNGeneralNFund,NspecialNrevenueNfunds,NdebtNservi
ceNfunds,NcapitalNprojectsNfunds,Nand NinternalNserviceNfunds.
True False
8. GovernmentsNcan,NinNpart,NdemonstrateNoperationalNaccountabilityNbyNreporting NproprietaryNand
NfiduciaryNfund NfinancialNinformation,NasNwellNasNallNgovernment-
wideNfinancialNinformation,Nusing NanNeconomicNresourcesNmeasurementNfocusNa nd NtheNaccrualNb
asisNofNaccounting.
True False
9. AllNcapitalNassetsNacquired NbyNor Nused NbyNaNfund Nshould NbeNreported NinNtheNfund NbalanceNshee
tNor NstatementNofNnetNposition.
True False
10. BecauseNbudgetaryNaccountsNareNused NbyNgovernments,NgovernmentNfinancialNstatementsNcanNnev
er NbeNsaid Nto NbeNinNaccord NwithNgenerallyNaccepted Naccounting Nprinciples.
True False
11. TheNmaximumNsetsNofNfund NfinancialNstatementsNa NgovernmentNwould NpresentNareNthree.
True False
12. WhenNrevenuesNareNlegallyNrestricted NbyNexternalNresourceNprovidersNor Ncommitted NbyNenabli
ng NlegislationNfor Nparticular Noperating Npurposes,NaNprivateNpurposeNtrustNfund NisNcreated.
True False
2-2
CopyrightN©N2016 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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, DOWNLOAD THE Test Bank for Accounting for Governmental and Nonprofit Entit
N N N N N N N N N N
ies 17th Edition Reck N N N
13. A NdebtNserviceNfund NisNused Nto NaccountNfor NfinancialNresourcesNsegregated Nfor NtheNpurpose
NofNmaking NprincipalNand NinterestNpaymentsNonNgeneralNlong-termNdebt.
True False
14. A Ndeferred NinflowNofNresourcesNisNdefined NasN"anNacquisitionNofNnetNassetsNbyNtheNgovernmentNtha
tNisNapplicableNto NaNfutureNreporting Nperiod."
True False
15. ExpendituresNareNnever Nrecorded NinNgovernmentalNfunds.
True False
16. Deferred NoutflowNofNresourcesNisNaNtypeNofNassetNthatNisNuniqueNto Ngovernment.
True False
17. RevenuesNisNanNexampleNofNwhatNtheNGASBNtermsNanNinflowNofNresources.
True False
18. AnNexpenditureNisNanNexampleNofNwhatNtheNGASBNtermsNanNoutflowNofNresources.
True False
19. Deferred NinflowNofNresourcesNand Ndeferred NoutflowNofNresourcesNwould NbeNshownNinNsepar
ateNsectionsNofNaNgovernment'sNstatementNofNnetNposition.
True False
20. InNaccordanceNwithNGASBNstandards,NaNdeferred NinflowNofNresourcesNisNreported NonNtheNfinan
cialNstatementsNtheNsameNasNanNunearned Nrevenue.
True False
2-3
CopyrightN©N2016 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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N N N N N N N N N N
ies 17th Edition Reck N N N
Chapter 02 N
N Principles of Accounting and Financial Reporting for State and Local
N N N N N N N N N
Governments
TrueN/NFalseNQuestions
1. GovernmentalNactivitiesNareNto NbeNclassified NasNgovernmentalNor Nb usiness-type.
True False
2. GovernmentalNfundsNareNidenticalNto NgovernmentalNactivities,NproprietaryNfundsNareNidenticalNt
o Nbusiness-
typeNactivities,Nand NfiduciaryNfundsNareNidenticalNto NfiduciaryNactivitiesNofNaNgovernment.
True False
3. OnlyNthoseNgovernmentalNand NproprietaryNfundsNthatNmeetNtheNGASBNsizeN criteria Nfor Nmajor Nfu
ndsNareNreported NinNseparateNcolumnsNofNtheNgovernmentalNand NproprietaryNfund NfinancialNstate
ments.
True False
4. EconomicNresourcesNareNcashNor NitemsNexpected Nto NbeNconverted Ninto NcashNduring NtheNcurr
entNperiod,Nor NsoonNenoughNthereafter Nto NpayNcurrentNperiod Nliabilities.
True False
5. GovernmentalNfundsNaccountNfor NassetsNbutNnotNtheNliabilities.
True False
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CopyrightN©N2016 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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,DOWNLOAD THE Test Bank for Accounting for Governmental and Nonprofit Entit
N N N N N N N N N N
ies 17th Edition Reck N N N
6. TheNtypesNofNfundsNthatNmayNbeNused NinNgovernmentalNaccounting NareNclassified Ninto NtheNth
reeNcategoriesNofNgovernmental,Nproprietary,Nand Nfiduciary.
True False
7. TheNgovernmentalNfundsNcategoryNincludesNtheNGeneralNFund,NspecialNrevenueNfunds,NdebtNservi
ceNfunds,NcapitalNprojectsNfunds,Nand NinternalNserviceNfunds.
True False
8. GovernmentsNcan,NinNpart,NdemonstrateNoperationalNaccountabilityNbyNreporting NproprietaryNand
NfiduciaryNfund NfinancialNinformation,NasNwellNasNallNgovernment-
wideNfinancialNinformation,Nusing NanNeconomicNresourcesNmeasurementNfocusNa nd NtheNaccrualNb
asisNofNaccounting.
True False
9. AllNcapitalNassetsNacquired NbyNor Nused NbyNaNfund Nshould NbeNreported NinNtheNfund NbalanceNshee
tNor NstatementNofNnetNposition.
True False
10. BecauseNbudgetaryNaccountsNareNused NbyNgovernments,NgovernmentNfinancialNstatementsNcanNnev
er NbeNsaid Nto NbeNinNaccord NwithNgenerallyNaccepted Naccounting Nprinciples.
True False
11. TheNmaximumNsetsNofNfund NfinancialNstatementsNa NgovernmentNwould NpresentNareNthree.
True False
12. WhenNrevenuesNareNlegallyNrestricted NbyNexternalNresourceNprovidersNor Ncommitted NbyNenabli
ng NlegislationNfor Nparticular Noperating Npurposes,NaNprivateNpurposeNtrustNfund NisNcreated.
True False
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CopyrightN©N2016 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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, DOWNLOAD THE Test Bank for Accounting for Governmental and Nonprofit Entit
N N N N N N N N N N
ies 17th Edition Reck N N N
13. A NdebtNserviceNfund NisNused Nto NaccountNfor NfinancialNresourcesNsegregated Nfor NtheNpurpose
NofNmaking NprincipalNand NinterestNpaymentsNonNgeneralNlong-termNdebt.
True False
14. A Ndeferred NinflowNofNresourcesNisNdefined NasN"anNacquisitionNofNnetNassetsNbyNtheNgovernmentNtha
tNisNapplicableNto NaNfutureNreporting Nperiod."
True False
15. ExpendituresNareNnever Nrecorded NinNgovernmentalNfunds.
True False
16. Deferred NoutflowNofNresourcesNisNaNtypeNofNassetNthatNisNuniqueNto Ngovernment.
True False
17. RevenuesNisNanNexampleNofNwhatNtheNGASBNtermsNanNinflowNofNresources.
True False
18. AnNexpenditureNisNanNexampleNofNwhatNtheNGASBNtermsNanNoutflowNofNresources.
True False
19. Deferred NinflowNofNresourcesNand Ndeferred NoutflowNofNresourcesNwould NbeNshownNinNsepar
ateNsectionsNofNaNgovernment'sNstatementNofNnetNposition.
True False
20. InNaccordanceNwithNGASBNstandards,NaNdeferred NinflowNofNresourcesNisNreported NonNtheNfinan
cialNstatementsNtheNsameNasNanNunearned Nrevenue.
True False
2-3
CopyrightN©N2016 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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