Accounting multiple choice explained in this answer

1. Which of the following objectives is considered to be the cornerstone of financial reporting by a governmental entity?
a) Accountability
b) Budgetary compliance
c) Interperiod equity
d) Service efforts and accomplishments

2. Under certain circumstances a governmental entity might use standards established by which of the following standard-setting bodies?
a) GASB
b) FASB
c) AICPA
d) All of the above

3. The primary standard-setting body for accounting and fnancial reporting by a state-supported college or university is:
a) GASB b) FASB c0 AICPA d) all of the above

4. The most significant financial document provided by a governmental entity may be
a) the balance sheet
b) the operating statement
c) the operating budget
c) the cash flow statement

5. Basis of accounting determines which of the following?
a) When transactions and events are recognized
b) What transactions and events are reported
c) Where transactions and events are reported
d) Why transactions and events will be reported

6. Which of the following funds is a fiduciary fund?
a) Permanent fund
b) Agency fund
c) Capital project fund
d) Debt service fund

7. When a governmental entity adopts a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets adn liabilities in its governmental fund types:
a) it is in violation of the law
b) it is in violation of GAAP
c) it has recorded transactions in accordance with standards for presentation in the fund financial statement required by the new GASP reporting model
d) it has the ability to better measure the results of operations

8. In addition government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government's basic set of financial statements. The basic fund financial statements that should be included for proprietary funds are
a) the balance sheet and the statement of revenues, expenditures, and changes in fund balance
b) the statement of net assets, the statement of revenues, expenses, and changes in fund net assets, adn the statement of cash flows
c) the statement of fiduciary net assets, and the statement of changes in fiduciary net assets
d) the balance sheet, the income statement, the statement of cash flows and the statement of retained earnings.

9. In addition to government-wide statements, GASB Statement No. 34 requires fund financial statements be included in the government's basic set of financial statements. The basic financial statements that should be included for fiduciary funds are
a) the balance sheet, the statement of revenues, expenditures and changes in fund balance
b) the statement of net assets, the statement of revenues, expenses, and changes in fund net assets, and the statement of cash flows
c) the statement of fiduciary net assets and the statement of changes in fiduciary net assets
d) the balance sheet, the statement of cash flows and the statement of retained earnings.

10. The aim of the government-wide statement of activities is to show
a) the net cost of each of the government's main functions and programs
b) the net income for the government as a whole
c) the net income for the government's governmental activities and fiduciary activities
d) the net income for the government's governmental activities and proprietary activities

11. Under the accrual basis of accounting, property tax revenues are recognized
a) when they are received in cash
b) in the year for which they were levied
c) in the year for which they were levied and when collection in cash is reasonably assured
d) when they are available to finance expenditures of the fiscal period.