Section 3, Chapter 4

Question 1

What are principal financial statements?

Answer 1

provides the reader with information about the reporting entitys financial results of operations during the year, and financial position at the end of the year.

Question 2

What does it mean “to recognize?”

Answer 2

the process of formally recording or incorporating an item into the financial statements of an entity as an asset, liability, revenue or expense.

Question 3

What is a disclosure?

Answer 3

reporting information in notes or narrative regarded as an integral part of the principal financial statements

Question 4

What is a balance sheet?

Answer 4

presents, as of a specific time, resources that embody ecomonic benefits or services the federal government controls. Assets-liabilities = net position

Question 5

Where is the first place readers can see obligations incurred?

Answer 5

STatement of Budgetary Resources

Question 6

What does the statement of financing show?

Answer 6

the difference between an obligations based budgetary result (net obligations) and accrual based net cost.

Question 7

What three differences does the Statemetn of Financing show?

Answer 7

1. ) net costs may be funded by nonbudgetary resources such as donations
2. ) financing sources may fund items that are not part of net cost such as capital asset acquisitions
3. ) net cost may contain items that do not require or generate resources in the current period, such as depreciation.

Question 8

What three subcategories make up RSSI?

Answer 8

1.) stewardship property, plant and equipment
2,) stewardship investments
3.) Stewardship responsibilities

Question 9

What are the 2 major classes of stewardship PP&E?

Answer 9

1. ) stewardship land

2. ) heritage assets

Question 10

What are the 3 items reported for stewardship land?

Answer 10

1. ) # of physical units (acres) of land by major use
2. ) acquisitions and withdrawls
3. ) condition of the land

Question 11

What are the 4 items reported for heritage assets??

Answer 11

1. ) description of each major class of heritage asset
2. ) # of physical units added and withdrawn from the period and begining and ending balances.
3. ) description of the methods of acquisition and withdrawl
4. ) the condition of heritage assets.

Question 12

What are stewardship investments?

Answer 12

investments made by the federal government that will increase the nation’s productive capacity and well being.

Question 13

What are the 3 types of stewardship investments?

Answer 13

1,) human capital

2. ) research and development
3. ) nonfederal physical property

Question 14

Stewardship reporting requires that federal reporting provide what 2 pieces of information?

Answer 14

1. ) whether the governments financial position improved or deteriorated over the period.
2. ) whether future budgetary resources will likely be sufficient to sustain public services and to meet obligations as they come due.

Question 15

What does MD&A provide a vehivle for?

Answer 15

1. ) communicating managers insights about the reporting entity
2. ) increasing the understandability and usefulness of the general purpose federal financial report
3. ) providing understandable and accessible information about the entity and its operations, service levels, successes, challengs and future.

Question 16

What 4 additional items are required supplementary information?

Answer 16

1. ) statement of budgetary resource
2. ) defferred maintenance
3. ) Intragovernmental amounts
4. ) segment information

Question 17

What are intragovernmental amounts?

Answer 17

include transactions between federal entities included in the government-wide financial statements.

Question 18

Who is required to report segment information?

Answer 18

1. ) franchise funds

2. ) intragovernmental support revolving fund no seperatly reported