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State and local government concepts

FAR Chapter 6 · Area I · Blueprint I.C

Government accounting looks strange at first because one city reports the same year twice, using two different sets of rules. FAR tests only the concepts: which measurement focus and basis of accounting each statement uses, how the fund statements differ from the government-wide statements, and which fund a given activity belongs in. The detailed entries are tested in BAR. Learn the eleven fund types and the two bases and these are quick marks.

In this chapter

1. Why governments report differently
2. Measurement focus and basis of accounting
3. Which statements use which basis
4. Governmental funds: the five types
5. Proprietary funds: the two types
6. Fiduciary funds: the four types
7. Reconciling fund statements to government-wide statements

This chapter has 7 lessons, 50 practice MCQs with explanations and 10 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Measurement focus and basis of accounting
• fund and government-wide reporting
• choosing the right fund

Chapter 5: Not-for-profit financial statements · Chapter 7: Public company reporting and earnings per share