1. What are the measurement focus and basis of accounting of governmental funds? What is the traditional rationale for this basis of accounting (used in governmental fund statements)as opposed to a full accrual basis?

2. What is the difference between an exchange and a nonexchange transaction?

3. What are the main categories of revenues per GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions?

4. What criteria must be met before revenues can be recognized on a modified accrual basis? What is the rationale for these criteria?

5. What is the general rule for recognizing property taxes as revenues? How would property taxes be accounted for differently in the fund statements, as opposed to in the government-wide statements?