72.Level “A” GAAP for The University of Virginia, a public institution, would be established by the:
A)Financial Accounting Standards Board.
B)Governmental Accounting Standards Board.
C)American Institute of Certified Public Accountants.
D)National Association of College and University Business Officers.
73.Under the modified accrual basis of accounting, expenditures should be recognized when:
A)they are authorized by the budget ordinance.
B)they are paid.
C)they are measurable and can be financed by the revenues of the current period.
D)the fund liability is incurred.
74.Fiduciary funds are to use the:
A)economic resources measurement focus and modified accrual basis of accounting.
B)current financial resources measurement focus and accrual basis of accounting.
C)economic resources measurement focus and accrual basis of accounting.
D)none of the above, the fiduciary funds have no revenues.
75.Proprietary funds use the:
A)current financial resources measurement focus and modified accrual basis of accounting
B)economic resources measurement focus and accrual basis of accounting.
C)economic resources measurement focus and modified accrual basis of accounting.
D)current financial resources measurement focus and accrual basis of accounting.
76.Governmental funds use the:
A)economic resources measurement focus and accrual basis of accounting.
B)current financial resources measurement focus and accrual basis of accounting.
C)economic resources measurement focus and modified accrual basis of accounting.
D) current financial resources measurement focus and modified accrual basis of accounting
77.Government-wide statements use the:
A)current financial resources measurement focus and accrual basis of accounting.
B) economic resources measurement focus and modified accrual basis of accounting.
C)economic resources measurement focus and accrual basis of accounting.
D)none of the above.
78.Governmental funds do
notinclude:
A) Special revenue funds
B) Agency funds
C) Debt service funds
D) The General fund
79.Which of the following organizations has authority to establish accounting and financial reporting standards for the federal government?
A)Federal Accounting Standards Advisory Board.
B)Office of Management and Budget.
C)Governmental Accounting Standards Board.
D)None of the above; no one has been granted authority to set standards for the federal government
80.Which of the following is most correct with regard to Management's Discussion and Analysis (MD&A)?
A)State and local governments are required to provide an MD&A.
B)Federal agency financial reports are required to provide an MD&A.
C)Both state and local governments and federal agencies are encouraged, but not required to provide an MD&A.
D)Both state and local governments and federal agencies are required to provide an MD&A.
81.GASB Concepts Statement No. 3,
Communication Methods in General Purpose External Financial Reports that Contain Basic Financial Statements, states that
A) notes to the financial statements may not include management’s objective explanations.
B) required supplementary information should be objectivebut may also include predictions or subjective assessments if management deems it necessary for understanding of the financial statements.
C) disclosure in the notes is not an adequate substitute for recognition in the financial statements.
D) All of the above are correct.