1.1. Explain the purpose of operational accountability and the purpose of fiscal accountability. Which category of financial statements is most useful in reporting on each of these accountability concepts?
2. Under GASB guidance, when should an item be recognized on the face of the financial statements? Under what conditions would the GASB indicate that a note disclosure should accompany an item that has been recognized on the financial statements?
1. For which funds are budgetary comparison schedules or statements required? Should the actual revenues and expenditures on the budgetary comparison schedules be reported on the GAAP basis? Why or why not?
2. Explain why some transactions for governmental activities at the government-wide level are reported differently than transactions for the General Fund. Give some examples of transaction that would be recorded in the general journals of (a) only the General Fund, (b) only government activities at the government-wide level, and (c) both.