Exam 11: Issues of Reporting, Disclosure, and Financial Analysis

The county created a legally separate county hospital authority.Members of the board of the county hospital are elected in county-wide elections.The county must approve the budget of the hospital,but the hospital receives no financial support from the county,except that the county pays the hospital bills for county indigents.All revenues of the hospital are user fees.In what manner would the hospital be included in the county's basic financial statements?

The typical audit is designed to cover all information included in the CAFR.

A city's Revenue from own sources/Median family income ratio is a measure of its

Eland City Council has adopted a policy of aggressively pursuing grants and other resource inflows from other levels of government.Over the past several years,the proportion of total city revenues that comes from other levels of government has steadily increased.As a consequence of these increased revenues,the city has begun offering a number of new services to citizens.In assessing the financial condition of the city,an analyst would conclude which of the following?

A related organization is a contractual arrangement whereby two or more participants agree to carry out a common activity and share its risks and rewards.

The Friends of the City Public Library Foundation is a legally separate,tax-exempt 501c)3)entity organized for the purpose of raising funds to provide financial assistance to the library.Members of the board of the foundation are elected by the existing foundation board members.The foundation provides financial assistance to the library,but the foundation receives no financial support from the library.If dissolved,all of the foundation assets would revert to the library.The foundation would be considered an)

Of the following powers possessed by Government A,which is an indication that Government A can impose its will on Government B? Government A:

Required notes are an essential element of the basic financial statements.

The Marigold School District,a legally separate school district that has a separately elected governing body,cannot enter into any debt agreements without the approval of the county commission.Marigold School District would be considered an):

A comprehensive annual financial report CAFR)for Homer City need not include which of the following sections?

Fund financial statements for fiduciary funds include which of the following?

Which of the following is generally considered to be a positive fiscal characteristic for a city?

The city created a legally separate port authority.Members of the board of the port authority are elected in general city elections.The port authority receives no tax dollars;it is supported entirely by user fees.The port authority determines its budget,sets user fees,and has the power to issue bonded debt.The authority would be considered an)

There are only two government-wide statements: the statement of net position and the statement of activities.

The auditor's report generally refers to information in which of the following sections of the CAFR?

It is unacceptable for a special-purpose government that is a component unit of a general-purpose government to issue its own "stand-alone" financial report.

Two cities entered into a contractual agreement to operate a landfill.The cities each contributed the necessary assets to operate the landfill in proportion to their populations.Each city has the ability to appoint two members of the governing body of the landfill.The assets contributed by First City were primarily in the form of property and equipment that had been used in general government activities.In what manner would the landfill be included in First City's fund financial statements?

The county created a legally separate county hospital authority.Members of the board of the county hospital are elected in county-wide elections.The hospital receives no financial support from the county,except that the county pays the hospital bills for county indigents.All revenues of the hospital are user fees.In what manner would the hospital be included in the county's basic financial statements?

Which of the following is necessary for a government to be considered fiscally independent?

The comprehensive annual financial report CAFR)is divided into three main sections: the table of contents section,the auditors' report section,and the financial section.