# T/F QUESTION 1 Under the modified accrual basis of accounting, there is no matching principle and no attempt to amortize costs that...
n.jvensov5l# | T/F QUESTION |
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1 | Under the modified accrual basis of accounting, there is no matching principle and no attempt to amortize costs that benefit multiple periods. |
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2 | In fund accounting, expenditures may be classified in different ways, such as by program or activity. |
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3 | When government funds reimburse one another, the expenditure of the fund paying for the cost is increased and the expenditure of the fund reimbursed is decreased. |
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4 | Loans between funds are handled in account receivable and account payable accounts. |
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5 | GASB requires disclosures about capital asset impairment if the decline in service is minimal. |
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6 | Government accounting principles dictate that interest received on investments be treated as cash inflow from investing activities. |
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7 | Payments received by a city utility fund would appear on a statement of cash flows for government funds. |
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8 | Revenues for government funds include taxes, assessments, proceeds from bonds, and fines. |
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9 | The general fund recognizes revenue when earned by the enterprise recognizes revenue when available. |
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10 | Capital assets related to specific proprietary funds should be accounted for in the government wide statements only. |
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11 | A major difference between fund statements and proprietary statements is the treatment of transactions that impact cash balances in the bank. |
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12 | The basic criterion used to determine the reporting entity (fund) for a govt. unit is its geographical boundaries. |
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13 | GASB requires fund balances to be reported as restricted when constraints are placed on the use of resources either externally imposed by creditors or those imposed by taxpayers. |
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14 | Agency funds take in monies that are used to invest in order to make the fund a profit. |
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15 | GASB does not require the notes to financial statements to address significant subsequent events. |
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16 | Since the general fund is a catch-all fund, a government agency typically uses several general funds to record different types of transactions. |
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17 | Revenue is generally included in fund statements if received within 60 days after the year end. |
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18 | Inter-fund transactions are eliminated on the Statement of Activities, when they are between the primary government and business type activities. |
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19 | Trust and agency funds use accrual basis of accounting. |
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20 | Major funds are reported on separately if management believes it is useful to present them separately in the financial statements. |
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