This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Chapter 01 - Introduction to Accounting and Financial Reporting for Governmental Chapter 01 Introduction to Accounting and Financial Reporting for Governmental Answer Key 1. General purpose governments generally provide a wider range of services to their residents than do special purpose governments. TRUE 2. Examples of special purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide. FALSE 3. The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all state and local governments, both general purpose and special purpose. TRUE 4. A characteristic common to governmental and not-for-profit organizations is operating purposes that are other than to provide goods or services at a profit or profit equivalent. TRUE 5. The needs of users of governmental financial reports are the same as those of users of business financial reports. FALSE 6. The Federal Accounting Standards Advisory Board (FASAB) recommends accounting principles and standards for the federal government and its agencies and departments. TRUE 7. The FASB, GASB, and FASAB all focus their standards on both internal and external financial reporting. FALSE 8. Interperiod equity refers to the concept that current-year revenues are sufficient to pay for services provided that year, so that future taxpayers will not be required to assume the burden for services previously provided. TRUE 9. The minimum requirements for general purpose external financial reporting are (1) management's discussion and analysis (MD&A), (2) the basic financial statements, including the notes to the financial statements, and (3) combining and individual fund financial statements....
View Full Document
- Fall '08