Questions -
1. Identify and briefly describe the three broad categories of service activities that most general purpose governments perform.
2. Describe how the reporting objectives for government-wide and governmental fund financial statements are different.
3. Explain the modified accrual basis of accounting. Why is it used for governmental fund financial statements?
4. What are the three categories of funds prescribed by GASB standards and which fund types are included in each? Which basis of accounting is used by each category?
5. What is the primary reason that governmental entities need to use funds for financial reporting? How are funds established?