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1) In the General Fund, revenues are recognized when measurable and earned.
2) The most numerous and important enterprise services rendered by local governments
are public utilities.
3) A fund represents part of the activities of an organization which is separated from
other activities in the accounting records to more easily demonstrate compliance with
legal restrictions or limitations.
4) In a disclaimer of opinion, the auditor states that no opinion is being expressed.
5) A Comprehensive Annual Financial Report for a state or local governmental unit
should contain an introductory section, a financial section, and a statistical section
6) Interest revenues should be accrued at year-end on investments held by a permanent
fund.
7) FASB statement 124 requires that investments in equity securities with readily
determinable values be reported at fair market value.
8) Fiduciary fund financial statements includethe Statement of Fiduciary Net Position,
Statement of Changes in Fiduciary Net Position, and Statement of Cash Flows.
9) Budgets are typically recorded for capital projects, debt service, and permanent
funds.
10) Proceeds from the Sale of Landin the General Fundis a source of funds and would
be closed at year end.
11) Property tax revenue is considered available if it is received no more than 30 days
after the fiscal year end.
12) An example of a program revenue in the government-wide Statement of Activities
would be parks and recreation fees.
13) The fund balance of permanent funds should be classified as Nonspendable,
Spendable and Committed.
14) Special-purpose governments generally provide a single or limited set of
governmental services or programs.
15) Equity investments should be recorded at fair market value unless a government has
sufficient investments in a company to apply the equity method.
16) Major sources of funding for Capital Project Funds include the issuance of long
term debt and grants from other governmental units.
17) The fund balance reported in the Governmental Funds Balance Sheet must be
reconciled to the total Net Position in the governmental activities column of the
government-wide Statements of Net Position.
18) Appropriation is the legal authorization for administrators of governmental unit to
incur liabilities for purposes specified and to not exceed the amount specified.
