ch.2

Which of the following amounts that are identified at the end of the fiscal year would be classified as a restricted fund balance?

A federal grant that is to be used for playground equipment.

Assets and liabilities of activities for which the government is acting in either an agency or trustee capacity for individuals, organizations, or other governments should be reported in:

The fiduciary fund financial statements.

Which of the following statements is true regarding the basic financial statements of a state or local government?

-Separate columns should be provided in the government-wide financial statements for governmental activities and business-type activities. -Governmental fund and proprietary fund financial statements should provide a separate column for each major fund. -Aggregate information about all nonmajor governmental funds or nonmajor enterprise funds should be reported in a single column of the governmental fund or proprietary fund financial statements.

Which of the following sets of elements are common for both governmental financial statements and for-profit financial statements?

Assets and liabilities.

Financial information about an internal service fund should be reported in the proprietary fund financial statements and the:

Either governmental activities or business-type activities column of the government-wide financial statements, depending on whether the internal service fund predominantly serves governmental activities or business-type activities.

The measurement focus and basis of accounting that should be used for the governmental fund financial statements are:

Measurement Focus :Current financial resources Basis of Accounting :modified accrual

Under the modified accrual basis of accounting:

Revenues are recognized when current financial resources become measurable and available to pay current-period obligations.

Separate reporting for major funds is needed because

Users of governmental financial statements need to be able to examine funds that represent large dollar amounts of a government's resources and activities.

Which of the following statements is true regarding the definition of a fund?

A fund is a fiscal entity which is designed to provide reporting that demonstrates conformance with finance-related legal and contractual provisions separately from GAAP reporting.