Problem: This activity focuses on various aspects of financial reporting in government accounting. It covers the accounting basis used for government activities in financial statements and the required fundamental financial statements. The classifications for reporting net position, major fund reporting, and fund type reporting are explained. Additionally, it discusses the differentiation between government and business-related activities, general revenues and program revenues, and the minimum classifications for program revenues. The activity also addresses the reporting of service charges, restricted grants, and contributions. Furthermore, it explores the level of functional detail required in the government-wide statement of activities and identifies expenses to be reported as discrete line items. Lastly, it touches upon reporting pension and OPEB plans in financial statements.
Answer the following questions:
1. What accounting basis(s) are used to report government activities in government-wide financial statements?
2. What fundamental financial statements are required by Statement No. 34?
3. Which classifications must be utilized to report net position in the government-wide statement of net position? In the statement of net position of the fund?
4. What does "major fund reporting" entail? How does this differ from fund type reporting? For what categories of funds is reporting required? What types of funds necessitate fund type reporting?
5. How does the government determine which funds are the most important? How does the government determine which private funds are the largest?
6. Differentiate between government and business-related activities. Give specific examples of each.
7. Differentiate between general revenues and program revenues. Give numerous examples of each.
8. What are the minimum classifications that program revenues of a specific function must fall under?
9. What determines the function under which service charges must be reported? What dictates the purpose for reporting restricted grants and contributions?
10. What is the minimum level of functional detail that must be included in the government-wide statement of activities for governmental activities? For business-related pursuits?
11. What expenses should be reported as discrete line items in the government-wide statement of activities rather than classified by function?
12. How are pension and OPEB plans to be reported in government-wide and fund financial statements?