The concept of interperiod equity refers to whether

Government Accounting Q & A 2

https://app.schoology.com/assignment/369077793/assessment 1/2

Government and Non­Profit Accounting: FAL ...

Module 2: Mastery Exercise

Question 1 (1 point)

Periodic allocations of funds to departments or agencies are generally called _____.

a appropriations

b allotments

c allocations

d none of the above

Question 2 (1 point)

Which branch of local (city and county) government most commonly prepares the budget?

a executive branch

b legislative branch

c judicial branch

d none of the above

Question 3 (1 point)

If an entity elects to focus on all economic resources, then it should adopt a modified accrual basis of accounting.

True

False

Question 4 (1 point)

For fund financial statements, the measurement focus and basis of accounting used by governmental fund types are _____.

a current financial resources and modified accrual accounting

b economic resources and modified accrual accounting

c financial resources and full accrual accounting

d economic resources and full accrual accounting

Question 5 (1 point)

Under the modified accrual basis of accounting, investment revenues for the current period should include _____.

a only interest and dividends received

b all interest and dividends received during the period plus all accruals of interest and dividends earned

c all interest and dividends received plus gains and losses on securities that were sold during the period

d all interest and dividends received, all gains and losses on securities sold, and all changes in market values on securities held in the portfolio at year­end

Question 6 (1 point)

The modified accrual basis of accounting is used in presenting the fund financial statements of the governmental funds because _____.

a it is the superior method of accounting for the economic resources of any entity

b it provides information as to the extent the entity achieved inter­period equity

c it is budget oriented while facilitating comparisons among entities

d it results in accounting measurements based on the substance of transactions

Questions 1­10 of 10 | Page 1 of 1

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11/22/2015 Module 2: Mastery Exercise | Schoology

https://app.schoology.com/assignment/369077793/assessment 2/2

Question 7 (1 point)

Reserve for encumbrances accounts should be closed at year­end.

True

False

Question 8 (1 point)

As used in governmental accounting, inter­period equity refers to a concept of _____.

a providing the same level of services to citizens each year

b measuring whether current year revenues are sufficient to pay for current year services

c levying property taxes at the same rate each year

d requiring that general fund budgets be balanced each year

Question 9 (1 point)

For which of the following funds would flexible budgeting be most valuable?

a Special revenue fund

b Capital projects fund

c Agency fund

d Enterprise fund

Question 10 (1 point)

Under the modified accrual basis of accounting, the amount of property tax revenues that should be recognized by a government in the current year related to the current­year levy will be _____.

a the total amount of the levy

b the expected collectible portion of the levy

c the portion of the levy collected

d the portion of the levy collected in the current year or within sixty days after the end of the fiscal period

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