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Governmental and Fund Accounting: Week 1 Exercises and Financial Statement Reporting

Description: The assignment focuses on governmental and fund accounting principles, including financial reporting.

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    Governmental and Fund Accounting: Week 1 Exercises and Financial Statement Reporting Homework week 1 10/28/12 Exercise 2 - 3 1. Activities of a general purpose government that provide the basis for GASB’s financial accounting and reporting framework consist of governmental, business - type, and fiduciary. True 2. The permanent fund is one of the several types of governmental funds. True 3. Government - wide financial statements report financial transactions related to the governmental, business - type, and fiduciary activities of the government. False , because fiduciary activities are omitted from the government - wide financial statements and only reported in the fiduciary fund financial statem ents . 4. A statement of revenues, expenditures, and changes in fund balances is used to report the inflows and outflows of current financial resources of governmental funds. True 5. The accounting system for proprietary funds should provide for integration of budgetary accounts. False , because propriety funds are designed for business - type activities where fees are associated. Therefore it is not suggested for propriety funds. 6. Financial information for component units must be reported by discrete presentation. False . Reporting the financial information of component units in a separate column of the government - wide financial statements is referred to as a discrete presentation. Discrete presentation is the most common method used to report component units and should be used unless the financial activities of the component unit are so intertwined with those of the primary government that they are, in substance, the same as the primary government. In such cases the component unit’s financial information should be reported in the same columns as the financial information of the primary government itself. This method of reporting is known as a blended presentation. 7. All assets, both current and noncurrent, and all liabilities, both current and noncurrent, are reported in the government - wide financial statements. True 8. All proprietary fund financial information is reported in the Business - type Activities column of the government - wide financial statements. False , because the Business - type Activities column of the government - wide financial statements is designed for services or goods and includes charges to customers or others for both governmental and business -

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