Governmental funds use the:

Multiple Choice

• economic resources measurement focus and modified accrual basis of accounting.

• current financial resources measurement focus and modified accrual basis of accounting.

• economic resources measurement focus and accrual basis of accounting.

• current financial resources measurement focus and accrual basis of accounting.

Government-wide statements use the:

Multiple Choice

• current financial resources measurement focus and accrual basis of accounting.

• economic resources measurement focus and modified accrual basis of accounting.

• economic resources measurement focus and accrual basis of accounting.

• none of the choices are correct.

Governmental funds do not include:

Multiple Choice

• Custodial funds

• The General fund.

• Debt service funds.

• Special revenue funds.

According to the GASB, Capital assets:

Multiple Choice

• must be reported in government-wide statements but are not reported in any of the fund financial statements.

• must be reported in government-wide statements and in proprietary fund financial statements.

• are not to be reported in either government-wide or fund financial statements.

• are to be reported but not depreciated in government-wide and fund financial statements.

Long-term debt of a governmental unit would be reported in the:

Multiple Choice

• government-wide financial statements only.

• notes to the financial statements only.

• government-wide financial statements and proprietary fund financial statements.

• debt service funds of governmental fund financial statements and government-wide financial statements.

A city government collects local sales taxes legally restricted to pay for the construction of a new courthouse. Which fund should account for the receipt of the sales taxes?

Multiple Choice

• Special revenue fund

• General fund

• Private-purpose trust fund

• Capital projects fund