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Governmental Accounting and Fund Accounting Flashcards

7 cards from real CGFM 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 and Fund Accounting flashcards as text

  1. Which GASB statement established the current framework for fund accounting in state and local governments?

    Answer: GASB Statement No. 34

    GASB Statement No. 34 established the basic financial reporting model including government-wide and fund financial statements used today.

  2. A Debt Service Fund is used to account for:

    Answer: Accumulation of resources for payment of long-term debt principal and interest

    Debt Service Funds accumulate financial resources for payment of principal and interest on general long-term debt.

  3. Which of the following is NOT a governmental fund type under GASB?

    Answer: Internal Service Fund

    Internal Service Funds are proprietary funds, not governmental funds; the five governmental fund types are General, Special Revenue, Capital Projects, Debt Service, and Permanent.

  4. Encumbrances in governmental accounting represent:

    Answer: Commitments related to unperformed contracts for goods or services

    Encumbrances represent commitments (purchase orders, contracts) for which goods or services have not yet been received, reserving the appropriation balance.

  5. In fund accounting, which of the following best describes a Special Revenue Fund?

    Answer: Accounts for revenues legally restricted to expenditure for specific purposes

    Special Revenue Funds account for revenues that are legally restricted or committed to be used for specific purposes other than debt service or capital projects.

  6. Interfund transfers differ from interfund loans because transfers:

    Answer: Are not required to be repaid

    Interfund transfers represent flows of resources between funds that are not expected to be repaid, whereas interfund loans are expected to be repaid.

  7. Under GASB, Permanent Funds are used to account for resources that are legally restricted so that:

    Answer: Only earnings, not principal, may be used to support government programs

    Permanent Funds account for resources where only the earnings (not the corpus/principal) may be spent, and must be used for the benefit of the government or its citizenry.

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  1. pearsonvue.com — Registration deadline · verified Oct 2026
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Governmental Accounting and Fund Accounting Flashcards — CGFM Study Cards with Answers