[PleaseDontDeleteThanks]

This is an actual MCQ in my review. This is hilarious.

Which of the following characteristics of service efforts and accomplishments is the most difficult to report for a governmental entity?

A. Comparability

B. Timeliness

C. Consistency

D. Relevance

D is correct.

Okay…so, the AICPA admits that governmental accounting is NOT even remotely relevant. Why do they test it?

I’m scoring mid-50’s on gov’t MCQ’s, and mid-70’s/80’s on all the others. So, I’m just angry about learning this BS.

FAR 72, 89
BEC 80
REG 90
AUD 79

[EuroAddict]

I'm pretty sure the Q isn't saying gov't acc'ting isn't relevant.

-----------------------------
BEC - 77, 03/2015 (first try)
FAR - 79, 05/2015 (second try)
REG - 83, 12/2015 (first try)
AUD - 84, 03/2015 (first try)

I got 99 problems but the CPA ain't one.

[PleaseDontDeleteThanks]

I agree, and that's what's funny. The AICPA also agrees that gov't accounting is useless and irrelevant….but they still test it. Thanks for your response.

FAR 72, 89
BEC 80
REG 90
AUD 79

[TheHoundThatRides]

Is there an explanation for the answer? I don't think it's saying it's useless for a government entity to show its financials. But it's hard to pinpoint that certain amounts of money are actually benefiting that entity's goals.

At the end of the day though, we DO need to see where the money flowed.

BEC - 78 (August 2015)
FAR - 80 (November 2015)
AUD - 73, 67. (Ok I gotta confess I was even more lazy this time around)
REG - August 27th, 2016

[Biff-1955-Tannen]

“I agree, and that's what's funny. The AICPA also agrees that gov't accounting is useless and irrelevant….but they still test it. Thanks for your response.”

lol I'm dying

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[PleaseDontDeleteThanks]

We have a guy that talks to GASB members. He says they're all hung-up on “interperiod equity,” and how financial statements are can be representative of one single taxpayer's contribution for a given period, rather than looking at the gov't activities over the long run.

They're stuck on themselves, and I wish that the AICPA would just eliminate gov't accounting on the exam. GASB is absolutely ruining the basic concepts of accounting.

FAR 72, 89
BEC 80
REG 90
AUD 79

[Jdn9201]

What I laugh at is the explanation in Roger's book about how government is accountable to taxpayers and expenditures should match what is collected in revenue. 🙂

I don't think the AICPA is saying Gov't Accounting is irrelevant. You have to look at what relevant means by GAAP standards – it has predictive value, confirmatory or feedback value, and is material. Someone else alluded to the fact that Gov't Accounting by nature focuses on a single period using the intra-period equity concept, so that lessens its ability to have confirmatory, predictive, and feedback value because it's one period in time. I have to say I didn't like Gov't Accounting when I first started studying it a week ago, because I'd never been exposed to it in college. I pulled up the annual report for my city (Jacksonville, FL) and it was neat to be able to apply what I was learning to practice. It's just too bad our actual government is so bad at applying the principle of having expenditures matching revenue, and our government not respecting the fact that it answers to the taxpayers.

BEC - 88 8/29/15
REG - 82 11/14/15
AUD - 83 1/8/16
FAR - 80 2/29/16

[PleaseDontDeleteThanks]

@jdn9201 Yeah, you're right about AICPA's referring to FASB relevance (predictive, confirming, or material). But still, they should be irrelevant in testing an accountant for licensing.

Even in governmental circles, accountants just point and laugh at GASB. Fund financials…scoff. Even full accrual financials are misleading. Look at GASBS 65, Items Previously Reported as Assets and Liabilities. They took certain receivables and deferrals, and renamed them based on very strict criteria. I think it's ridiculous that it's even considered accounting at this point.

FAR 72, 89
BEC 80
REG 90
AUD 79

[PleaseDontDeleteThanks]

Hey AICPA, watch this video. https://www.youtube.com/watch?v=yY96hTb8WgI

Low scores from governmental questions aren't coming from the lack of candidates' experience, it's from faulty design, flawed concepts, and bad management.

STOP TESTING THIS USELESS BS. Thank you.

FAR 72, 89
BEC 80
REG 90
AUD 79

[Anonymous]

What JDN said..but that seriously is not a very difficult question…

Relevance pertains to predictive and confirmintory value…gov accounting is based off cash based funds and budgets..and those budgets are only good for the year they service in most instances…soooooo its pretty hard to have forward looking statements when you only budget for the current year and are not allowed to technically hold surpluses on the books due to interperiod equity..

I do agree its pretty stupid and should just follow GAAP

[Author]

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