Chapter 1

FASAB accounting and financial reporting standards ______

- are reviewed and become effective unless objected to by a principal -apply to the Consolidated Financial Report of the US Government

Financial statement elements utilized by GASB include ______.

- net position -assets -liabilities -deferred inflows of resources

The Governmental Accounting Standards Board sets accounting and financial reporting standards for ______.

- state and local governments -government libraries and museums -government health-care entities

Types of government funds include ______ funds.

-capital projects -special revenue

Primary user groups of governmental accounting information according to GASB Concepts Statement No. 1 are ______.

-citizens -oversight bodies -creditors

Governmental units should establish ______.

-funds required by law -funds required by sound financial administration

Required supplementary information (RSI) ______.

-includes management discussion and analysis -usually is presented in forms or schedules

Not-for-profit organizations ______.

-lack residual ownership claim - have a purpose other than making a profit

Governments ______.

-may elect not to depreciate some capital assets - may expense improvements that extend an asset's useful life

Governments ______.

-must provide information to citizens within their jurisdiction -have creditors interested in assessing their creditworthiness -have vastly different sets of accounting information users

According to Statements of Federal Financial Accounting Concepts 1, the objectives that should be followed in federal financial reporting are ______.

-operating performance -budgetary integrity -systems and control -stewardship

Characteristics that make an organization a governmental organization include the ______.

-potential for unilateral dissolution by a government -ability to directly issue tax-exempt debt -power to enforce a tax levy

Governmental organizations include ______.

-public corporations -organizations with officers who are elected by popular vote.

A governments' focus of accounting is on ______.

-sustainability of services -the ability to meet future demand

Deferred inflows and outflows include ______.

-taxes deferred to a future period -changes in the value of hedging derivatives -prior service costs from changes in pension terms

A government's official yearly report is called a(n) _______ _________ _______ Report.

Comprehensive Annual Financial Report

Accounting and financial reporting standards for the federal government are published by the ______.

Federal Accounting Standards Advisory Board

Principals that can object to FASAB standards DO NOT include the U.S. ______.

Financial Accounting Foundation

Accounting and financial reporting standards for nongovernmental not-for-profit organizations are set by the ______ Board.

Financial Accounting Standards

Accounting and financial reporting standards for governmental not-for-profit organizations are set by the ______ Board.

Governmental Accounting Standards

GASB standards are set forth in documents called of ______ Financial Accounting Standards.

Statement

GASB standards are set forth in documents called of ______ Financial Accounting Standards.

Statements

Government-wide and fund statements for proprietary and fiduciary funds use the economic resources measurement focus and the ______ basis of accounting.

accrual

According to Concepts Statements No. 3, when items can be measured with sufficient reliability they should be reported in the ______.

basic financial statements

Organized versions of accounting standards are called ________

codifications

Because governmental funds' accounting systems are designed to measure the extent to which financial resources obtained during a period are sufficient to cover claims against them and the net financial resources available in the future, they have a flow of ______ resources measurement.

current financial

According to Concepts Statements No. 3, notes to the financial statements ______.

enhance the understanding of items in the financial statements

In order for a fund to exist, there must be both a(n) _______ _______ and a double-entry accounting entity created to account for it.

fiscal entity

To help provide assurance that resources are used according to legal or donor restrictions, governments use ______ accounting.

fund

The General Fund ______ be used for the receipt of revenues raised solely for a particular purpose

may

Fund statements for governmental funds use the current financial resources measurement focus and the ______ basis of accounting.

modified accrual

Based on the need to satisfy citizens' "right to know," governmental financial reports generally provide ______ detail when compared to corporate annual reports.

much more

Organizations owned or controlled by the government are called ______ organizations.

public

Governments receive many of their resources from individuals and businesses who are required to pay _____.

taxes

True or false: Governments report much more dis-aggregated information than commercial enterprises.

true