1) Governmental attestation engagements must comply with the Government Auditing
Standards but are exempt from compliance with the
2) General long-term debt, to be paid out of resources of the government’s taxing
power, is reported in both the governmental fund Balance Sheet and the
government-wide Statement of Net Position.
3) After closing entries, a special revenue funds Fund Balance account represents the
net amount of resources available for future appropriation
4) Property that has been abandoned or property whose owners cannot be found is
turned over to the state government until the legal owners can be found is known as
community property.
5) An exchange transaction is one where each party is given and receives essentially
equal value.
6) FASB standards require private colleges and universities to present a Statement of
Cash Flows.
7) Any governmental fund may have a positive Unassigned Fund Balance.
8) Internal Service Funds are most commonly included in the business-type activities
category of the government-wide statements.
9) Higher education institutions that report as special purpose entities engaged in
business-type activities only should report the same net asset classifications (Net
investment in capital assets, restricted, unrestricted) as are reported in the
government-wide statement of Net Position.
10) Reimbursement grants allow revenue to be recognized at the time the grant is made.
11) Special purpose governments must be stand-alone local governments.
12) An enterprise fund is required if there is a legal requirement that the cost of
providing services for an activity, including capital costs, be recovered through fees or
charges.
13) Most inter fund transfers are not eliminated in the government-wide statements.
14) GASB requires the indirect method to determine cash flows from operating
activities.
15) If taxes and/or special assessments are levied specifically for payment of interest
and principal on long-term debt, those taxes are recognized as revenues of the debt
service fund.
16) Plant acquired by a private college with either unrestricted or restricted resources
may be (1) recorded initially as unrestricted OR (2) recorded initially as temporarily
restricted and then classified in accordance with the depreciation schedule.
17) When accounting for interest expenditures through debt service funds, interest is
required to be accrued at year-end.
18) As both the FASB and the GASB approved the