All the following are required financial statement reporting on governmental funds EXCEPT
Answer(s): D
The governmental funds (e.g., general fund, special revenue fund, capital projects fund) are reported using the modified accrual basis and current financial resources measurement focus. Required financial statements for governmental funds include:Balance SheetStatement of Revenues, Expenditures, and Changes in Fund BalancesThere is no requirement for a statement of cash flows for governmental funds. The statement of cash flows is only required for proprietary funds (e.g., enterprise and internal service funds) and is prepared using the direct method.Relevant
GASB Statement No. 34 Basic Financial StatementsGASB Codification Section 2200GFOA Governmental Fund Reporting GuidelinesAnswer : D . statement of cash flows
What fund category traditionally accounts for the general services to the public such as public safety, health, transportation, social services and the administration of the government?
Answer(s): B
The governmental fund category is used to account for the core services of a government that are primarily supported by taxes and other non-exchange revenues. These services include public safety, education, health, transportation, and social services. It includes the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds.While option D (general fund) is technically a fund within the governmental category, the broader and more accurate classification is "governmental."Relevant
GASB Statement No. 34 Basic Financial Statements for State and Local GovernmentsGASB Codification Section 1300 Fund TypesGFOA Fund Structure GuidanceAnswer : B . governmental
According to GASB, when should landfill closure and post-closure costs be recognized?
Comprehensive DetailedAccording to GASB Statement No. 18 (Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs), governments must recognize a portion of closure and post-closure costs each year as the landfill's capacity is used.This is done using the "units-of-consumption" method, meaning costs are accrued in proportion to how much of the landfill's total capacity has been filled. The total estimated cost is spread over the useful life of the landfill.Relevant
GASB Statement No. 18 Landfill Closure and Postclosure CostsGASB Codification Section L10.103GFOA Environmental Liabilities GuidanceAnswer : D . each year the landfill is operating
Using the cost recovery method of recognizing revenue, premiums are recognized as revenue
Under the cost recovery method, revenue is recognized only as costs are recovered. In the context of insurance or risk-financing activities (such as self-insurance), GASB and FASAB require that premium revenues be recognized over the term of the policy, in proportion to the recognition of related costs (e.g., claims incurred).This aligns revenue with expenses and ensures no profit is recognized before related obligations are met.Relevant
FASAB SFFAS No. 7 Revenue and Other Financing SourcesGASB Statement No. 10 Accounting for Risk Financing and Related Insurance IssuesGFOA Risk Management and Insurance PracticesAnswer : B . throughout the duration of the policy when claim costs are incurred
The process in the budget where OMB communicates to agencies what it will recommend to the president is called
Answer(s): A
The "pass back" is a step in the federal budget process during which the Office of Management and Budget (OMB) communicates to federal agencies what parts of their budget requests it has approved or rejected. It precedes the preparation of the President's Budget and gives agencies a chance to appeal decisions before final submission.Other options:Allotment: An internal division of an appropriation.Rescission: A cancellation of budget authority.Apportionment: OMB's formal distribution of funds over time, typically quarterly.Relevant
OMB Circular A-11 Preparation, Submission, and Execution of the BudgetGAO Glossary of Budgetary TermsCongressional Budget Office (CBO) Federal Budget ProcessAnswer : A. pass back
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