Practice Test Geeks(AICPA) American Institute of Certified Public Accountants Practice Test
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Governmental Accounting Flashcards

7 cards from real AICPA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Governmental Accounting flashcards as text

  1. Which basis of accounting is used by governmental funds under GASB standards?

    Answer: Modified accrual basis

    Governmental funds use the modified accrual basis, recognizing revenues when measurable and available, and expenditures when the related liability is incurred.

  2. Under GASB standards, which of the following is classified as a governmental fund?

    Answer: General fund

    The General Fund is a governmental fund; enterprise and internal service funds are proprietary funds, and pension trust funds are fiduciary funds.

  3. What is the measurement focus of governmental funds?

    Answer: Current financial resources

    Governmental funds use the current financial resources measurement focus, concentrating on near-term inflows and outflows of spendable resources.

  4. Government-wide financial statements are prepared using which basis of accounting?

    Answer: Accrual basis

    Government-wide financial statements (statement of net position and statement of activities) are prepared using the full accrual basis of accounting.

  5. Which GASB statement established the current financial reporting model for state and local governments?

    Answer: GASB Statement No. 34

    GASB Statement No. 34, issued in 1999, established the current financial reporting model including government-wide and fund financial statements.

  6. Revenues in governmental funds are recognized when they are:

    Answer: Measurable and available

    Under modified accrual, governmental funds recognize revenues when they are both measurable and available — collectible within the current period or soon enough to pay current liabilities.

  7. Which of the following is classified as a proprietary fund?

    Answer: Enterprise fund

    Enterprise funds are proprietary funds that account for operations financed and operated similarly to private business enterprises, such as utilities or airports.