Which of the following government-wide financial statements are required for state and local governments?
Answer(s): C
The government-wide financial statements required by GASB Statement No. 34 include:Statement of Net Position (similar to a balance sheet)Statement of Activities (similar to an income statement)These financial statements provide a consolidated view of the government's financial position and activities using the economic resources measurement focus and accrual basis of accounting.There is no requirement under GASB for a government-wide statement of cash flows.Relevant Standards and
GASB Statement No. 34, Basic Financial Statements--and Management's Discussion and Analysis-- for State and Local GovernmentsGASB Codification Section 2200: Financial ReportingGFOA Budgeting Best PracticesTherefore, Option C is correct.
An example of a non-exchange revenue is
Answer(s): A
Non-exchange revenues are those in which a government gives or receives value without directly receiving or giving equal value in return. Sales taxes are a classic example of a non-exchange revenue because the payer (consumer) does not receive a direct, measurable benefit from the government in exchange for the tax paid.Other examples of non-exchange revenues include property taxes, grants, and fines. In contrast, licensing fees and investment earnings are exchange or exchange-like revenues, since they involve a mutual benefit or earnings return.Relevant Standards and
GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange TransactionsGASB Codification Section N50GFOA Revenue Classification Guidelines
A budget document that lists the budget by social services, affordable housing and supplies includes which of the following significant elements?
A well-structured budget document typically categorizes spending in three key ways:Function: Broad purpose or mission, such as public safety, social services, or housing.Program: Specific activities or initiatives under a function (e.g., housing vouchers under affordable housing).Object Class: The type of goods or services purchased, such as personnel, supplies, or equipment.When a budget is organized by items like social services (function), affordable housing (program), and supplies (object class), it indicates the budget is categorized by those three significant elements.Relevant Standards and
OMB Circular A-11, Preparation, Submission, and Execution of the BudgetGAO Budget Glossary
Based on FASAB standards, calculate the full cost of 1 unit of an output using the following information:
Answer(s): D
Under FASAB standards, specifically SFFAS No. 4, Managerial Cost Accounting Standards, the full cost of an output includes:Direct costs (e.g., direct material and labor)Indirect costs (e.g., inter-entity costs, overhead, services)In-kind contributionsAny support service costsDepreciation or amortization, if applicableWe will now compute the full cost of all 5 units and then divide by 5 to obtain the cost per unit.Step 1: List and sum all relevant costs.Direct Material: $11,267,000Direct Labor: $5,980,000Inter-entity Costs: $1,500,000Accounting and Contracting Services: $500,000Physical and Data Security: $700,000In-kind Logistics Services: $500,000Warehouse Lease: $1,000,000Parking Lot Construction: $3,000,000Equipment Installation: $600,000New Employee Training: $100,000Total Full Cost =$11,267,000$5,980,000$1,500,000$500,000$700,000$500,000$1,000,000$3,000,000$600,000$100,000= $25,147,000Step 2: Calculate cost per unit (based on 5 outputs):Cost per unit = $25,147,000 ÷ 5 = $5,029,400But the question specifically asks:"Based on FASAB standards, calculate the full cost of 1 unit of an output..."So, the correct answer (full cost of all units) is:Answer : D. $25,147,000If they had asked for cost per unit, then the answer would be:= $5,029,400 Option CNote: Option C is a distractor here and would only be correct if the question specifically asked for per unit cost.Relevant Standards and
FASAB Statement of Federal Financial Accounting Standards (SFFAS) No. 4: Managerial Cost Accounting Concepts and StandardsOMB Circular A-136: Financial Reporting RequirementsTreasury Financial Manual (TFM), Volume I, Part 2, Chapter 4700Therefore, the correct answer to the full cost (not per unit) is:Answer : D. $25,147,000.
The unobligated balance of an appropriation is equal to the total unexpended appropriation, less the total amounts
The unobligated balance of an appropriation refers to the portion of the total appropriation authority that has not yet been committed (obligated) through contracts, purchase orders, or other legally binding agreements.Formula:Unobligated Balance = Total Appropriation Total ObligationsThis is a key control metric in federal and state financial management, used to determine how much funding remains legally available for future obligations.Relevant Standards and
OMB Circular A-11, Section 20.3GAO Principles of Federal Appropriations Law (Red Book)FASAB SFFAS No. 7: Reporting on Budgetary ResourcesTherefore, Option A is correct.
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