1.            Expenditures are generally recognized when resources are acquired; expenses when resources are consumed.   2.            Governmental fund liabilities are considered current only when they must be liquidated with expendable available financial resources—not, as in businesses and in the government-wide statements, when they must be […]

1.            Capital budgets focus on plans for the acquisition and construction of fixed assets.   2.            The accounting cycle for most governments is two to three years, consistent with the terms of elected officials.   3.            Most budgets are prepared […]

1.            If an entity elects to focus on all economic resources, then it should adopt a modified accrual basis of accounting.   2.            The budgetary measurement focus of governments is determined by applicable state or local laws.   3.            The […]

1.            Fund accounting promotes control and accountability over restricted resources.   2.            The basis of accounting determines when transactions and events are recognized.   3.            If an entity adopts a full accrual basis of accounting, its measurement focus will automatically […]

1.            The main objective of a typical governmental or not-for-profit entity is to earn a profit.   2.            A government’s budget may be backed by the force of law.   3.            Governmental entities have no need for an accounting system. […]

Which of the following assets is not properly classified as property, plant, and equipment?   A truck held for resale by an automobile dealership   Land improvements, such as parking lots and fences   A building used as a factory   Land used in ordinary business operations   One characteristic of a plant asset is […]

Federal Government Accounting  TRUE/FALSE (CHAPTER 17)   1.            If the federal Treasury, GAO, or OMB objects to a FASAB standard, it is returned to the Board for reconsideration.   2.            Federal operations consist of 5 fund types—the general fund, special funds, trust funds, capital funds, […]

 Question 1A cognizant agency can be either an employee of a federal agency or of an independent accounting firm.   Question 2The Single Audit Act of 1984 was passed to eliminate the costly practice of requiring separate audits for each federal program in which an organization participated.   Question 3Performance audits are sometimes referred to […]

Zero-based budgeting requires the periodic review of all programs, not just new ones.   Question 2It is difficult for accountants to have a role beyond auditing the financial statements of governments and not-for-profits.    Question 3Outputs is a term used to indicate the quantity or units of service provided by an activity.   Question 4 […]

The statement of financial position of a not-for-profit health care organization should distinguish among unrestricted, temporarily restricted, and permanently restricted net assets.   Question 2Unlike businesses, not-for-profit health care providers often serve patients who they know will be unable to pay any portion of the amounts billed.   Question 3Private not-for-profit colleges and universities are […]