TRUE OR FALSE QUESTIONS
1-A fund in itself is a separate legal entity that isestablished to comply with laws that require that certaintransactions be segregated and accounted for as a separate"fund."
2-The Financial Accounting Standards Board (FASB) sets generallyaccepted accounting principles (GAAPs) for non-governmentnot-for-profit organizations, while government non-profitorganizations must follow GASB.
3-The size of a governmentâs operations does not necessarilycoincide with the number of funds it establishes.
4-The MDA section of the basic financial statements is anintroduction of events that have occurred in the organization aswell as the possible effects of events that might happen.
5-The government wide financial statements are presented inaddition to fund financial statements and include the entityâsfiduciary activities.
6-The budget of an NFP organization is not integrated into therecord-keeping procedures and the applicable financial statements,as it is for governmental entities.
7-Certain revenues are precluded by GAAP from being recorded inspecial revenue funds. Revenues that are earmarked for expendituresfor major capital projects should be recorded in special revenuefunds.
8-NFP organizations adjust the value of their long-term debt fordiscounts or premiums on issuance of the debt, whereas governmentslist their long-term debt in the General Long-term Liabilitiesaccounts at face value even though it may have been issued at adiscount or at a premium.
8-Because they use full accrual accounting, NFPs account fordepreciation. There is an exception, however, in regard to certainassets that have collection value which are preservable in theircurrent condition, and have a claim on resources sufficient topreserve them indefinitely.
10-Proprietary funds use the accrual basis of accounting and theeconomic resources measurement focus. Accordingly, proprietaryfunds recognize revenues when they are earned and recognizeexpenses when a liability is incurred.
11-The basis of accounting describes when transactions arerecorded, not what transactions are recorded. Accordingly,allocations such as depreciation and amortization are not recordedas expenditures of governmental funds, nor are long-termliabilities.
12-Governmental funds use the current financial resourcesmeasurement focus, which recognizes as expenditures those coststhat result in a decrease in current financial resources.
13-Routine employer contributions from the general fund andinternal services billings from the enterprise fund are treated astransfers between funds.
14-The GASB requires each governmental entity to prepare aCAFR.
15-The budget for Virginia Beach authorizes expenditures of 12million and forecasts revenues of 10 million for 2016. The entry torecord the budget in the General Fund is as follows (trueor false).
Estimated Revenues (debit) 10million
Expenditures (debit) 2million
Appropriations (credit) 12 million
SELECT CORRECT ANSWER:
16-Which of the following is an example of a deferred outflow ofresources:
A-Costs to acquire rights to future revenues
B-Grant amounts received in advance of meeting timingrequirements.
C-Proceeds from the sale of future revenues
D-Deferred gain from a sale and leaseback transaction.
16-GASBS 34 updated the types of fiduciary funds to includeEnterprise funds. TRUE OR FALSE?
17-Identify 4 main (the big) differences between fund accountingand proprietary accounting.
TRUE OR FALSE QUESTIONS
1-A fund in itself is a separate legal entity that isestablished to comply with laws that require that certaintransactions be segregated and accounted for as a separate"fund."
2-The Financial Accounting Standards Board (FASB) sets generallyaccepted accounting principles (GAAPs) for non-governmentnot-for-profit organizations, while government non-profitorganizations must follow GASB.
3-The size of a governmentâs operations does not necessarilycoincide with the number of funds it establishes.
4-The MDA section of the basic financial statements is anintroduction of events that have occurred in the organization aswell as the possible effects of events that might happen.
5-The government wide financial statements are presented inaddition to fund financial statements and include the entityâsfiduciary activities.
6-The budget of an NFP organization is not integrated into therecord-keeping procedures and the applicable financial statements,as it is for governmental entities.
7-Certain revenues are precluded by GAAP from being recorded inspecial revenue funds. Revenues that are earmarked for expendituresfor major capital projects should be recorded in special revenuefunds.
8-NFP organizations adjust the value of their long-term debt fordiscounts or premiums on issuance of the debt, whereas governmentslist their long-term debt in the General Long-term Liabilitiesaccounts at face value even though it may have been issued at adiscount or at a premium.
8-Because they use full accrual accounting, NFPs account fordepreciation. There is an exception, however, in regard to certainassets that have collection value which are preservable in theircurrent condition, and have a claim on resources sufficient topreserve them indefinitely.
10-Proprietary funds use the accrual basis of accounting and theeconomic resources measurement focus. Accordingly, proprietaryfunds recognize revenues when they are earned and recognizeexpenses when a liability is incurred.
11-The basis of accounting describes when transactions arerecorded, not what transactions are recorded. Accordingly,allocations such as depreciation and amortization are not recordedas expenditures of governmental funds, nor are long-termliabilities.
12-Governmental funds use the current financial resourcesmeasurement focus, which recognizes as expenditures those coststhat result in a decrease in current financial resources.
13-Routine employer contributions from the general fund andinternal services billings from the enterprise fund are treated astransfers between funds.
14-The GASB requires each governmental entity to prepare aCAFR.
15-The budget for Virginia Beach authorizes expenditures of 12million and forecasts revenues of 10 million for 2016. The entry torecord the budget in the General Fund is as follows (trueor false).
Estimated Revenues (debit) 10million
Expenditures (debit) 2million
Appropriations (credit) 12 million
SELECT CORRECT ANSWER:
16-Which of the following is an example of a deferred outflow ofresources:
A-Costs to acquire rights to future revenues
B-Grant amounts received in advance of meeting timingrequirements.
C-Proceeds from the sale of future revenues
D-Deferred gain from a sale and leaseback transaction.
16-GASBS 34 updated the types of fiduciary funds to includeEnterprise funds. TRUE OR FALSE?
17-Identify 4 main (the big) differences between fund accountingand proprietary accounting.
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