Section 1: 30–40%1C2
Purpose of Funds
Governmental accounting organizes resources into separate 'funds' — each with its own financial statements and purpose. The CPA exam tests which fund is appropriate for specific government activities, which basis of accounting applies, and which financial statements each type produces.
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