Problem 3: True or False questions

A. The issue of when resources should be reported in the financial statements of funds is a basis of accounting concern.

B. The Certificate of Achievement for Excellence in Financial Reporting is awarded to a state or local government by the Government Finance Officers Association.

C. A statement of cash flows is reported for enterprise and internal service funds.

D. The government-wide financial statements report the economic resources measurement focus and the accrual basis of accounting.

E. Resources flowing into and out of a fund means that the fund is an accounting entity.

F. On the government-wide financial statements, three types of activities are reported: governmental, business-type, and fiduciary type.

G. The issue of what resources should be reported in the financial statements of funds is a measurement focus concern.

H. According to the Governmental Accounting Standards Board, there are three fund categories and eleven fund types.

I. Under the accrual basis of accounting, revenues are recognized when they are both measureable and available to finance expenditures of the current period.

J. In Illinois, 25% of the 6.25% state sales tax is remitted back to cities, villages, and counties in Illinois.