1) Proprietary funds do not record capital assets, depreciation on those capital assets,
and long-term debt.
2) The Budgetary Comparison Schedule requires a column for the original budget, a
column for the final revised budget, and a column for actual figures, computed on the
accrual basis.
3) Inter fund services provided and used are recognized as direct Increases and
Decreases in Fund Balance
4) The Statement of Budgetary Resources for a federal agency is prepared on the
accrual basis.
5) The use of opinion units allows an auditor to issue different opinions on different
statements, instead of issuing a single opinion.
6) Enterprise funds are reported in the business-type activities column of the
government-wide statements.
7) Transactions between funds of the same government are not assumed to be arms
length in nature.
8) The
9) The classification of Net Assets for tax-exempt organizations are consistent with
FASB standards for not-for-profit organizations.
10) Expenditure is a decrease in fund financial resources (net of liabilities) other than
through inter fund transfers.
11) FASB standards require private colleges and universities to present a Statement of
Functional Expense.
12) The difference between assets and liabilities in the government-wide statements is
called fund balance.
13) Governmental-type fund financial statements include the Balance Sheet and the
Statement of Revenues, Expenditures, Changes in Fund Balances, and a Statement of
Cash Flows.
14) Contributions to a private not-for-profit are recorded at fair market value at the date
of receipt.
15) Fund-basis statements are presented for three categories of government activities:
governmental, proprietary, and fiduciary.
16) Entities that are tax-exempt under IRS Section 501(c)(3) are prohibited from having
surpluses (revenues exceed expenses).
17) Revenue sources for public colleges include tuition and fees and donations. All
other income is reported as unrelated business income.
18) The
19) If a government has debt service due no more than one month after the end of a
fiscal year and has the resources available, then it is permitted to accrue expenditures
and a fund liability for the debt service.