AICPA Governmental Accounting 1

Question 1

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

Accepted Answer

Modified accrual basis

Answer

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

Question 2

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

Accepted Answer

General fund

Answer

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

Question 3

What is the measurement focus of governmental funds?

Accepted Answer

Current financial resources

Answer

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

Question 4

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

Accepted Answer

Accrual basis

Answer

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

Question 5

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

Accepted Answer

GASB Statement No. 34

Answer

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

(AICPA) American Institute of Certified Public Accountants Practice Test

(AICPA) American Institute of Certified Public Accountants Practice Test

AICPA Governmental Accounting 1