GOVERNMENTAL ACCOUNTING EXAM 3 - CHAPTERS 8 THRU 10 Select the best answer for each question and enter your answers on the answer sheet sent with the exam. Submit only the completed answer sheet‚ not the entire exam. Please write your name on the answer sheet. 1. General long-term debt of a governmental entity includes a) All future financial obligations. b) All future financial obligations that result from past transactions. c) All future financial obligations
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16. Which of the following federal officials is a "principal" of the Joint Financial Management Improvement Program who considers and approves or disapproves accounting and reporting standards recommended by the Federal Accounting Standards Advisory Board? A. Chair of the Federal Accounting Standards Advisory Board. B. Secretary of the Interior. C. Comptroller General. D. All of the above. Content: Concept Level: Easy Wilson - Chapter 12 #16 17. FASAB has identified four major
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According to the accounting practice in business‚ companies will always be levied by the federal through the income tax payable that will become the company’s income tax expense when it is paid. The tax net includes the personal profit‚ business income‚ and the capital gain. Referring to Australian Accounting Standard Board (AASB) 112‚ the income tax expense (income) is not merely equal to current tax liability (asset)‚ but also the function of the deferred tax liabilities and assets (Leo‚ Hoggett
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Chapter 2: The Use of Funds in Governmental Accounting Multiple Choice 1. To what does basis of accounting refer? a. whether an entity is trying to measure the excess of inflows over outflows b. how much cash an entity received in a particular reporting period c. the timing of recognition of assets‚ liabilities‚ revenues‚ and expenditures/expenses in financial statements d. the ownership of the assets‚ liabilities‚ and equities reported in a balance sheet Answer: c
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(c) 1. Relative to the pension fund the term “funded” refers to the relationship between pension fund assets and the present value of expected future pension benefit payments; thus‚ the pension fund may be fully funded or under funded. Relative to the employer‚ the term “funded” refers to the relationship of the contributions made by the employer to the pension fund and the pension expense accrued by the employer; if the employer contributes annually to the pension fund an amount equal to the pension
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Governmental Acct. Chapter 1 Homework 1-1) What justifies the different accounting & financial reporting practices of gvmt. & not-for-profit organizations as compared with business organizations? The fact that governments may have a monopoly on the services that they provide and the taxpayers must provide resources to them regardless of what they are‚ and efficiency is hard to measure as well as the quantity or quality of the services. 1-2) Describe the principal differences that distinguish
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CASE 3: FLIGHT OF FUNDS A. Problems Mr. Idris bin Junid appointed as the new Chief Executive Officer of Travel Investment Holdings Bhd. (TIH) on 1 April 2010. TIH suffered major losses due to the global economic downturn in 2009. As the CEO‚ Idris had to identify the cause of the major losses‚ he had to focus on the bottom line and cash flow of the organization. Idris has noticed that there had been an investment made by a subsidiary Malaysia Travels Sdn. Bhd. (MTSB) in 2006 which had shown no
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relatively permanent but also compulsory and does not guarantee a direct relationship between the amount contributed by a citizen and the extent of the government services provided to him or her. Taxation is the only practical means of raising the revenue used to finance government spending on the goods and services that most of the people demand. Taxation as a practice dates back to early civilization. In Biblical times for example‚ people were required to pay one tenth of their crops to the king
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CHAPTER 18 Revenue Recognition ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief | | | Concepts | |Topics |Questions |Exercises |Exercises |Problems |for Analysis | |*1. Realization and recognition; sales |1‚ 2‚ 3‚ 4‚ |1‚ 2‚ 3‚ |1‚ 2‚ 3‚ 4‚
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Chapter 1 The Government and Not-For-Profit Environment TRUE/FALSE (CHAPTER 1) 1. The main objective of a typical governmental or not-for-profit entity is to earn a profit. 2. A government’s budget may be backed by the force of law. 3. Governmental entities have no need for an accounting system. 4. A government’s internal managers rely on general purpose financial statements for a considerable amount of information about their government. 5. Governments and not-for-profits
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