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True Falseġ3. The Governmental Accounting Standards Board is assigned responsibility for setting accounting and financial reporting standards for A. Governments such as federal agencies, states, cities, counties, villages, and townships. True Falseġ2. The basis of accounting under which revenues are recognized when measurable and available for spending and expenses when resources are consumed is the modified accrual basis of accounting.
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True Falseġ1. The governmental fund financial statements are intended to report on fiscal accountability. True Falseġ0. The statement of net assets and the statement of activities are the two government-wide financial statements required by GASBS 34. True Falseĩ. The minimum requirements for general purpose external financial reporting are (1) management's discussion and analysis (MD&A), (2) the basic financial statements, including the notes to the financial statements, and (3) combining and individual fund financial statements. True FalseĨ. Interperiod equity refers to the concept that current-year revenues are sufficient to pay for services provided that year, so that future taxpayers will not be required to assume the burden for services previously provided. True Falseħ. The FASB, GASB, and FASAB all focus their standards on both internal and external financial reporting. True FalseĦ. The Federal Accounting Standards Advisory Board (FASAB) recommends accounting principles and standards for the federal government and its agencies and departments. True Falseĥ. The needs of users of governmental financial reports are the same as those of users of business financial reports.
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True FalseĤ. A characteristic common to governmental and not-for-profit organizations is operating purposes that are other than to provide goods or services at a profit or profit equivalent. True Falseģ. The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all state and local governments, both general purpose and special purpose. True FalseĢ. Examples of special purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide. Some manufacturing industries are now required to keep cost records under the Companies Act.Introduction to Accounting and Financial Reporting for Governmentalġ. General purpose governments generally provide a wider range of services to their residents than do special purpose governments. However, cost accounts are generally kept voluntarily to meet the requirements of management. (2) Financial accounts are kept as required by the Companies Act, Income-tax Act, and other laws. Cost accounting, on the other hand, provides management with useful information for planning, operating, controlling, and making decisions. Information is provided to various parties, such as shareholders or partners, present or prospective creditors, etc. (1) Financial accounting is designed to safeguard the interests of businesses, their owners, and others associated with them. Here are the main differences between financial accounting and cost accounting: While financial accounting reveals the profits and losses of a business as a whole during a given period, cost accounting displays, by analysis and localisation, the unit costs and profits and losses of different product lines. Both financial accounting and cost accounting deal with systematically recording and presenting financial information.