Section 1: 30–40%1C2
Purpose of Funds
Government-wide statements and fund statements coexist — and AICPA loves to ask which one reports which number. The trap: capital assets and long-term debt appear on government-wide statements (full accrual) but NOT in governmental fund statements (modified accrual). A question showing a building purchase and asking 'how is this reported' is testing exactly that difference.
What AICPA Wants You to Know
- 1Name and describe the three categories of governmental funds and their subtypes
- 2Identify the basis of accounting used by each fund category
- 3Match government activities to the correct fund type
- 4Distinguish enterprise funds from internal service funds
- 5Identify the four types of fiduciary funds