ACCT 567 Week 1 Exercise 2-3 and 2-5

1.  Activities of a general purpose government that provide the basis for GASB’s financial accounting and reporting framework consist of governmental, business-type, and fiduciary.  True

2.  The permanent fund is one of the several types of governmental funds.  True

3.  Government-wide financial statements report financial transactions related to the governmental, business-type, and fiduciary activities of the government.  False, because fiduciary activities are omitted from the government-wide financial statements and only reported in the fiduciary fund financial statements.

4.  A statement of revenues, expenditures, and changes in fund balances is used to report the inflows and outflows of current financial resources of governmental funds.  True

5.  The accounting system for proprietary funds should provide for integration of budgetary accounts.  False, because propriety funds are designed for business-type activities where fees are associated.  Therefore it is not suggested for propriety funds
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