2-1. GASB Concepts Statement No. 3 discusses various methods of communicating financial accounting information to users....

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2-1. GASB Concepts Statement No. 3 discusses various methods of communicating financial accounting information to users. One method is using required supple- mentary information (RSI). What is RSI, and how does it differ from other supple- mentary information? Illustrate the difference using an example of each method. 2-2. What are the three activity categories the GASB indicates are common to most general purpose governments? What types of activities are performed in each category? 2-3. Explain differences between the government-wide statement of activities and the governmental fund statement of revenues, expenditures, and changes in fund balance. 2-4. How does the modified accrual basis of accounting differ from accrual accounting? Why is modified accrual used for governmental fund financial statements? 2-5. 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? 2-6. What is the primary reason government entities use funds for financial report- ing? How are funds established? 2-7. What is meant by the terms deferred outflows of resources and deferred inflows of resources? When are these accounts used? Where are they reported on the financial statements? 2-8. How do expenses and expenditures differ? 2-9. Identify the governmental fund balance classifications and give an example of what might be included in each classification identified. 2-10. Identify the criteria for determining if a governmental or enterprise fund must be reported as a major fund. What other funds should or may be reported as major funds? 2-1. GASB Concepts Statement No. 3 discusses various methods of communicating financial accounting information to users. One method is using required supple- mentary information (RSI). What is RSI, and how does it differ from other supple- mentary information? Illustrate the difference using an example of each method. 2-2. What are the three activity categories the GASB indicates are common to most general purpose governments? What types of activities are performed in each category? 2-3. Explain differences between the government-wide statement of activities and the governmental fund statement of revenues, expenditures, and changes in fund balance. 2-4. How does the modified accrual basis of accounting differ from accrual accounting? Why is modified accrual used for governmental fund financial statements? 2-5. 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? 2-6. What is the primary reason government entities use funds for financial report- ing? How are funds established? 2-7. What is meant by the terms deferred outflows of resources and deferred inflows of resources? When are these accounts used? Where are they reported on the financial statements? 2-8. How do expenses and expenditures differ? 2-9. Identify the governmental fund balance classifications and give an example of what might be included in each classification identified. 2-10. Identify the criteria for determining if a governmental or enterprise fund must be reported as a major fund. What other funds should or may be reported as major funds?

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Lets break down each question one by one 21 RSI vs Other Supplementary Information Required supplementary information RSI is financial information that GASB requires to be presented alongside the basi... View the full answer