,DOWNLOADgTHEgTestgBankgforgAccountinggforgGovernmentalgandgNonprofitgEntit
iesg17thgEditiongReck
Chapterg02
g PrinciplesgofgAccountinggandgFinancialgReportinggforgStategandgLocal
Governments
Trueg/gFalsegQuestions
1. Governmentalgactivitiesgaregtogbegclassifiedgasggovernmentalgorgbusiness-type.
True False
2. Governmentalgfundsgaregidenticalgtoggovernmentalgactivities,gproprietarygfundsgaregidenticalgt
ogbusiness-
typegactivities,gandgfiduciarygfundsgaregidenticalgtogfiduciarygactivitiesgofgaggovernment.
True False
3. OnlygthoseggovernmentalgandgproprietarygfundsgthatgmeetgthegGASBgsizegcriteriagforgmajorgfun
dsgaregreportedgingseparategcolumnsgofgtheggovernmentalgandgproprietarygfundgfinancialgstatem
ents.
True False
4. Economicgresourcesgaregcashgorgitemsgexpectedgtogbegconvertedgintogcashgduringgthegcurre
ntgperiod,gorgsoongenoughgthereaftergtogpaygcurrentgperiodgliabilities.
True False
5. Governmentalgfundsgaccountgforgassetsgbutgnotgthegliabilities.
True False
2-1
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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
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,DOWNLOADgTHEgTestgBankgforgAccountinggforgGovernmentalgandgNonprofitgEntit
iesg17thgEditiongReck
6. Thegtypesgofgfundsgthatgmaygbegusedginggovernmentalgaccountinggaregclassifiedgintogthegthr
eegcategoriesgofggovernmental,gproprietary,gandgfiduciary.
True False
7. TheggovernmentalgfundsgcategorygincludesgthegGeneralgFund,gspecialgrevenuegfunds,gdebtgservi
cegfunds,gcapitalgprojectsgfunds,gandginternalgservicegfunds.
True False
8. Governmentsgcan,gingpart,gdemonstrategoperationalgaccountabilitygbygreportinggproprietarygandg
fiduciarygfundgfinancialginformation,gasgwellgasgallggovernment-
widegfinancialginformation,gusinggangeconomicgresourcesgmeasurementgfocusgandgthegaccrualgba
sisgofgaccounting.
True False
9. Allgcapitalgassetsgacquiredgbygorgusedgbygagfundgshouldgbegreportedgingthegfundgbalancegsheet
gorgstatementgofgnetgposition.
True False
10. Becausegbudgetarygaccountsgaregusedgbyggovernments,ggovernmentgfinancialgstatementsgcangnev
ergbegsaidgtogbegingaccordgwithggenerallygacceptedgaccountinggprinciples.
True False
11. Thegmaximumgsetsgofgfundgfinancialgstatementsgaggovernmentgwouldgpresentgaregthree.
True False
12. Whengrevenuesgareglegallygrestrictedgbygexternalgresourcegprovidersgorgcommittedgbygenablin
gglegislationgforgparticulargoperatinggpurposes,gagprivategpurposegtrustgfundgisgcreated.
True False
2-2
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
mynursytest.store
, DOWNLOADgTHEgTestgBankgforgAccountinggforgGovernmentalgandgNonprofitgEntit
iesg17thgEditiongReck
13. Agdebtgservicegfundgisgusedgtogaccountgforgfinancialgresourcesgsegregatedgforgthegpurposeg
ofgmakinggprincipalgandginterestgpaymentsgonggeneralglong-termgdebt.
True False
14. Agdeferredginflowgofgresourcesgisgdefinedgasg"angacquisitiongofgnetgassetsgbygtheggovernmentgthat
gisgapplicablegtogagfuturegreportinggperiod."
True False
15. Expendituresgaregnevergrecordedginggovernmentalgfunds.
True False
16. Deferredgoutflowgofgresourcesgisgagtypegofgassetgthatgisguniquegtoggovernment.
True False
17. RevenuesgisgangexamplegofgwhatgthegGASBgtermsganginflowgofgresources.
True False
18. AngexpendituregisgangexamplegofgwhatgthegGASBgtermsgangoutflowgofgresources.
True False
19. Deferredginflowgofgresourcesgandgdeferredgoutflowgofgresourcesgwouldgbegshowngingsepara
tegsectionsgofgaggovernment'sgstatementgofgnetgposition.
True False
20. IngaccordancegwithgGASBgstandards,gagdeferredginflowgofgresourcesgisgreportedgongthegfinanci
algstatementsgthegsamegasgangunearnedgrevenue.
True False
2-3
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
mynursytest.store
iesg17thgEditiongReck
Chapterg02
g PrinciplesgofgAccountinggandgFinancialgReportinggforgStategandgLocal
Governments
Trueg/gFalsegQuestions
1. Governmentalgactivitiesgaregtogbegclassifiedgasggovernmentalgorgbusiness-type.
True False
2. Governmentalgfundsgaregidenticalgtoggovernmentalgactivities,gproprietarygfundsgaregidenticalgt
ogbusiness-
typegactivities,gandgfiduciarygfundsgaregidenticalgtogfiduciarygactivitiesgofgaggovernment.
True False
3. OnlygthoseggovernmentalgandgproprietarygfundsgthatgmeetgthegGASBgsizegcriteriagforgmajorgfun
dsgaregreportedgingseparategcolumnsgofgtheggovernmentalgandgproprietarygfundgfinancialgstatem
ents.
True False
4. Economicgresourcesgaregcashgorgitemsgexpectedgtogbegconvertedgintogcashgduringgthegcurre
ntgperiod,gorgsoongenoughgthereaftergtogpaygcurrentgperiodgliabilities.
True False
5. Governmentalgfundsgaccountgforgassetsgbutgnotgthegliabilities.
True False
2-1
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgAccountinggforgGovernmentalgandgNonprofitgEntit
iesg17thgEditiongReck
6. Thegtypesgofgfundsgthatgmaygbegusedginggovernmentalgaccountinggaregclassifiedgintogthegthr
eegcategoriesgofggovernmental,gproprietary,gandgfiduciary.
True False
7. TheggovernmentalgfundsgcategorygincludesgthegGeneralgFund,gspecialgrevenuegfunds,gdebtgservi
cegfunds,gcapitalgprojectsgfunds,gandginternalgservicegfunds.
True False
8. Governmentsgcan,gingpart,gdemonstrategoperationalgaccountabilitygbygreportinggproprietarygandg
fiduciarygfundgfinancialginformation,gasgwellgasgallggovernment-
widegfinancialginformation,gusinggangeconomicgresourcesgmeasurementgfocusgandgthegaccrualgba
sisgofgaccounting.
True False
9. Allgcapitalgassetsgacquiredgbygorgusedgbygagfundgshouldgbegreportedgingthegfundgbalancegsheet
gorgstatementgofgnetgposition.
True False
10. Becausegbudgetarygaccountsgaregusedgbyggovernments,ggovernmentgfinancialgstatementsgcangnev
ergbegsaidgtogbegingaccordgwithggenerallygacceptedgaccountinggprinciples.
True False
11. Thegmaximumgsetsgofgfundgfinancialgstatementsgaggovernmentgwouldgpresentgaregthree.
True False
12. Whengrevenuesgareglegallygrestrictedgbygexternalgresourcegprovidersgorgcommittedgbygenablin
gglegislationgforgparticulargoperatinggpurposes,gagprivategpurposegtrustgfundgisgcreated.
True False
2-2
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
mynursytest.store
, DOWNLOADgTHEgTestgBankgforgAccountinggforgGovernmentalgandgNonprofitgEntit
iesg17thgEditiongReck
13. Agdebtgservicegfundgisgusedgtogaccountgforgfinancialgresourcesgsegregatedgforgthegpurposeg
ofgmakinggprincipalgandginterestgpaymentsgonggeneralglong-termgdebt.
True False
14. Agdeferredginflowgofgresourcesgisgdefinedgasg"angacquisitiongofgnetgassetsgbygtheggovernmentgthat
gisgapplicablegtogagfuturegreportinggperiod."
True False
15. Expendituresgaregnevergrecordedginggovernmentalgfunds.
True False
16. Deferredgoutflowgofgresourcesgisgagtypegofgassetgthatgisguniquegtoggovernment.
True False
17. RevenuesgisgangexamplegofgwhatgthegGASBgtermsganginflowgofgresources.
True False
18. AngexpendituregisgangexamplegofgwhatgthegGASBgtermsgangoutflowgofgresources.
True False
19. Deferredginflowgofgresourcesgandgdeferredgoutflowgofgresourcesgwouldgbegshowngingsepara
tegsectionsgofgaggovernment'sgstatementgofgnetgposition.
True False
20. IngaccordancegwithgGASBgstandards,gagdeferredginflowgofgresourcesgisgreportedgongthegfinanci
algstatementsgthegsamegasgangunearnedgrevenue.
True False
2-3
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
mynursytest.store
