Assignment
1. What are the measurement focus and basis of accounting of governmental funds? What is the traditional rationale for this basis of accounting (used in governmental fund statements)-as opposed to a full accrual basis?
2. What is the difference between an exchange and a nonexchange transaction?
3. What are the main categories of revenues per GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions?
4. What criteria must be met before revenues can be recognized on a modified accrual basis? What is the rationale for these criteria?
5. What is the general rule for recognizing property taxes as revenues? How would property taxes be accounted for differently in the fund statements, as opposed to in the government-wide statements?
6. What is meant by "deferred inflow of resources?" Provide an example of when a government might credit such an account.
7. What is the earliest point in the sales tax collection process that revenue may be recognized? How can you justify recognizing revenue on the basis of this event?
8. What special problems do governments face in measuring the income taxes associated with a particular year?
9. What are nonrevenue sources of funding? Why are they not shown with revenues in the Statement of Revenues, Expenditures and Changes in Fund Balances?
10. What are fund balances and what classification of fund balances are available in the general fund?