Exam 17: Financial Reporting Issues

Under the requirements for a Statement of Cash Flow, what sections must be included in the statement? 1) Operating Cash Flows 2) Cash Flows from noncapital financing 3) Capital and related financing flows 4) Investing Cash Flows

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(Multiple Choice)

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Question 1

Correct Answer:

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GASB Statement No. 34 requires the reporting for internal service funds by

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Question 2

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Briefly discuss the minimum requirements of the Management Discussion and Analysis section in the comprehensive annual financial report.

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Question 3

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The management's discussion and analysis (MD&A) appears before the financial statements of a governmental unit and is provided to give an overview of the government's financial statements. The basic requirements include:
$\bullet$ A brief discussion of the basic financial statements including how they relate to each other and the significant differences in the information they provide.
$\bullet$ Condensed current and prior year financial information from the government wide financial statements
$\bullet$ Analysis of the government's overall financial position, results of operations, and important economic factors
$\bullet$ Analysis of individual fund financial information, including information on significant fund changes and projection of possible future limitations
$\bullet$ Variance analysis of original budget, final budget and actual amounts
$\bullet$ Capital asset changes
$\bullet$ Long-term liabilities changes
$\bullet$ Report on the condition of infrastructure assets
$\bullet$ Any other information on items that could have a material effect on the governmental unit's financial position

Which of the following is NOT a classification of the equity accounts of a proprietary fund?

(Multiple Choice)

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Question 4

Required supplementary information includes all of the following except for:

(Multiple Choice)

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Question 5

GASB Statement No. 34 requires a separate set of financials statements for each of the three categories of funds. Prepare an analysis of the basic types of fund categories, what the measurement focus is and the basis of accounting, and which basic financial statements are needed.

(Essay)

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Question 6

In the Comprehensive Annual Financial Report (CAFR) of a governmental unit, the account groups are included in

(Multiple Choice)

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Question 7

A quasi-external transaction such as the sale of power by the city utility fund to the general fund should be accounted for as

(Multiple Choice)

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Question 8

The most common difference between funds-based and government-wide financial statements is

(Multiple Choice)

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Question 9

In order to convert the governmental fund statement of revenues, expenditures, and changes in fund balances to a government wide statement of activities, which of the following activities is necessary? 1) Eliminate capital outlay expenditures 2) Reclassify revenues between program revenues and general revenues 3) Record bad debt expenses 4) Convert from Economic flow of resource method of account to current financial resources modified accrual based accounting

(Multiple Choice)

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Question 10

The City of Terrytown reports the following information: There are no business type activities for this city or other component units. Taxes raised for general revenues equal $200,000 and taxes raised for debt service equal $25,000. Other general revenues were generated through fines, fees, and permits that total $100,000. The city also sold a plot of land for a gain of $10,000. The beginning of the year net assets totaled $155,000. Required: Prepare a statement of activities schedule for the city.

(Essay)

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Question 11

Converting the governmental fund balance sheet to a government wide statement of net assets requires which of the following activities? 1) Add general fixed assets, net of accumulated depreciation 2) Add general long-term debt, using the effective interest method 3) Eliminate the assets and liabilities of most internal service funds (those whose primary customer is the general government) 4) Eliminate the fund balance and classify the net assets into invested in capital assets, restricted net assets, and unrestricted net assets

(Multiple Choice)

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Question 12

Reciprocal interfund activities include all but which of the following?

(Multiple Choice)

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Question 13

Which of the following combination of reports is needed on the statement of activities?

(Short Answer)

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Question 14

From the following information, prepare a statement of net assets for the city of Franklin as of June 30, 20X3:

(Essay)

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Question 15

The Single Audit Act requires that a governmental unit have a single audit if they

(Multiple Choice)

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Question 16

When operations of component units of government are blended with the primary government unit, they are reported by

(Multiple Choice)

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Question 17

The purpose of the Management Discussion and Analysis section is

(Multiple Choice)

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Question 18

Major funds are described as

(Multiple Choice)

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Question 19

Which of the following could be considered a component unit of a primary government unit?

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Question 20

Showing 1 - 20 of 29

Under the requirements for a Statement of Cash Flow, what sections must be included in the statement? 1) Operating Cash Flows 2) Cash Flows from noncapital financing 3) Capital and related financing flows 4) Investing Cash Flows

GASB Statement No. 34 requires the reporting for internal service funds by

Briefly discuss the minimum requirements of the Management Discussion and Analysis section in the comprehensive annual financial report.

Which of the following is NOT a classification of the equity accounts of a proprietary fund?

Required supplementary information includes all of the following except for:

GASB Statement No. 34 requires a separate set of financials statements for each of the three categories of funds. Prepare an analysis of the basic types of fund categories, what the measurement focus is and the basis of accounting, and which basic financial statements are needed.

In the Comprehensive Annual Financial Report (CAFR) of a governmental unit, the account groups are included in

A quasi-external transaction such as the sale of power by the city utility fund to the general fund should be accounted for as

The most common difference between funds-based and government-wide financial statements is

Reciprocal interfund activities include all but which of the following?

Which of the following combination of reports is needed on the statement of activities?

From the following information, prepare a statement of net assets for the city of Franklin as of June 30, 20X3:

The Single Audit Act requires that a governmental unit have a single audit if they

When operations of component units of government are blended with the primary government unit, they are reported by

The purpose of the Management Discussion and Analysis section is

Major funds are described as

Which of the following could be considered a component unit of a primary government unit?

Business Combinations: New Rules for a Long-Standing Business Practice

Consolidated Statements: Date of Acquisition

Consolidated Statements: Subsequent to Acquisition

Intercompany Transactions: Merchandise, Plant Assets, and Notes

Intercompany Transactions: Bonds and Leases

Cash Flow, Eps, and Taxation

Special Issues in Accounting for an Investment in a Subsidiary

Subsidiary Equity Transactions; Indirect and Mutual Holdings

The International Accounting Environment

Foreign Currency Transactions

Translation of Foreign Financial Statements

Interim Reporting and Disclosures About Segments of an Enterprise

Partnerships: Characteristics, Formation, and Accounting for Activities

Partnerships: Ownership Changes and Liquidations

Governmental Accounting: the General Fund and the Account Groups

Governmental Accounting: Other Governmental Funds, Proprietary Funds, and Fiduciary Funds

Accounting for Private Not-For-Profit Organizations

Accounting for Not-For-Profit Colleges and Universities and Health Care Organizations

Estates and Trusts: Their Nature and the Accountants Role

Debt Restructuring, Corporate Reorganizations, and Liquidations

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