Test Bank For Accounting for Governmental & Nonprofit Entities 17th edition by reck

1.

Fund-based financial statements are intended to provide detailed financial information about the governmental, proprietary, and fiduciary activities of the primary government.   True    False

2.

Government-wide financial statements include financial information for all governmental, proprietary, and fiduciary funds.   True    False

3.

The government-wide statement of net position displays the net expense or revenue for each function or program of the government.   True    False

4.

Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards.   True    False

5.

Three categories of program revenues are reported in the statement of activities: charges for services, operating grants and contributions, and capital grants and contributions.   True    False

6.

All purchases of goods and services and all interfund transfers of the General Fund are recorded as Expenditures.   True    False

7.

On the government-wide statement of activities, depreciation expense for assets that essentially benefit all functions, such as the city hall, may be reported as a separate line item or on the same line as the General Government or similar function.   True    False

8.

Expenses represent the costs to purchase goods or services, whereas expenditures represent the costs of a goods or services consumed or expired during the period.   True    False

9.

Other financing sources increase fund balance in the same manner as revenues.   True    False

10.

Budgetary accounts used in the General Fund include Estimated Revenues, Estimated Other Financing Sources, Appropriations, Estimated Other Financing Uses, and Encumbrances.   True    False

11.

All encumbrances must be closed at year-end.   True    False

12.

An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.   True    False

13.

GASB standards require that all state and local governments present a statement of revenues, expenditures, and changes in fund balances-budget and actual for the General Fund and major special revenue funds for which annual budgets have been legally adopted.   True    False

14.

Available means that a revenue or other financing source is expected to be collected during the current fiscal period or within one month of the fiscal year end.   True    False

15.

The legal level of budgetary control represents the administrative level at which expenditures may not exceed appropriations without a formal budgetary amendment.   True    False