Question 1

Which of the following statements is not a required part of the basic financial statements of Carlton City?

Accepted Answer

A) Government-wide statement of net position. 
B) Statement of revenues,expenditures,and changes in fund balances for all governmental funds. 
C) Statement of revenues,expenses,and changes in net assets for all fiduciary funds. 
D) Statement of cash flows for all proprietary funds. 
A) Government-wide statement of net position. 
B) Statement of revenues,expenditures,and changes in fund balances for all governmental funds. 
C) Statement of revenues,expenses,and changes in net assets for all fiduciary funds. 
D) Statement of cash flows for all proprietary funds.

Question 2

With regard to combining statements,which of the following statements is true?

Accepted Answer

A) Combining statements for nonmajor governmental funds are optional. 
B) Combining statements for nonmajor governmental funds are required. 
C) Combining statements for nonmajor internal service funds are optional. 
D) Combining statements for all internal service funds are optional. 
A) Combining statements for nonmajor governmental funds are optional. 
B) Combining statements for nonmajor governmental funds are required. 
C) Combining statements for nonmajor internal service funds are optional. 
D) Combining statements for all internal service funds are optional.

Question 3

A primary government can impose its will on a potential component unit if it has the authority to modify or approve the unit's budget.

Accepted Answer

A) True 
 B)False

Question 4

The State has a legally separate State Building Authority which has a board appointed by the governor.The authority issues debt in its own name,holds title to buildings in its own name,and leases its building exclusively to the state.In what manner would the authority be included in the State's basic financial statements?

Accepted Answer

A) Blended. 
B) Discretely presented. 
C) Note disclosure only. 
D) Not included in any manner. 
A) Blended. 
B) Discretely presented. 
C) Note disclosure only. 
D) Not included in any manner.

Question 5

Government-wide financial statements include which of the following?

Accepted Answer

A) Balance sheet and income statement. 
B) Balance sheet,income statement,and statement of cash flows. 
C) Statement of net position and statement of activities. 
D) Statement of net position,statement of activities,and statement of cash flows. 
A) Balance sheet and income statement. 
B) Balance sheet,income statement,and statement of cash flows. 
C) Statement of net position and statement of activities. 
D) Statement of net position,statement of activities,and statement of cash flows.

Question 6

Internal service funds are presented in a single column in the proprietary fund financial statements,even if one or more of them is a major fund.

Accepted Answer

A) True 
 B)False

Question 7

When a government's Unassigned fund balance/Total operating revenues ratio is high

Accepted Answer

A) It is a sign of fiscal strength. 
B) It indicates the government is spending too little. 
C) It indicates the government is taxing too much. 
D) Any of the above may be indicated. 
A) It is a sign of fiscal strength. 
B) It indicates the government is spending too little. 
C) It indicates the government is taxing too much. 
D) Any of the above may be indicated.

Question 8

The city created a legally separate entity to operate a county hospital.The city council appoints a voting majority of the board of the hospital.The city cannot impose its will on the hospital and there is no potential for a financial benefit or financial burden to the city.In what manner would the hospital be included in the city's basic financial statements?

Accepted Answer

A) Blended. 
B) Discretely presented. 
C) Only by note disclosure of the relationship. 
D) Not included in any manner. 
A) Blended. 
B) Discretely presented. 
C) Only by note disclosure of the relationship. 
D) Not included in any manner.

Question 9

The State University Foundation is a legally separate,tax-exempt 501c)3)entity organized for the purpose of raising funds to provide scholarships only to academically qualified students at the State University.The existing university foundation board members elect new members of the board.The foundation provides scholarships to students of the State University,but the foundation receives no financial support from the university.The Foundation is an example of:

Accepted Answer

A) Primary government. 
B) Related organization. 
C) Affiliated organization. 
D) None of the above. 
A) Primary government. 
B) Related organization. 
C) Affiliated organization. 
D) None of the above.

Question 10

The Hospital Foundation is a legally separate,tax-exempt 501c)3)entity organized for the purpose of raising funds to provide scholarships only to academically qualified students at the Hospital Medical School.Members of the board of the Hospital Foundation are elected by the existing board of trustees.The foundation provides scholarships to students of the Hospital Medical School,but the foundation receives no financial support from the hospital.The foundation would be considered an)

Accepted Answer

A) Primary government. 
B) Component unit. 
C) Related organization. 
D) Affiliated organization. 
A) Primary government. 
B) Component unit. 
C) Related organization. 
D) Affiliated organization.

Question 11

Required supplementary information RSI)is considered part of the basic financial statements.

Accepted Answer

A) True 
 B)False

Question 12

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.In what manner would the port authority be included in the city's basic financial statements?

Accepted Answer

A) Blended. 
B) Discretely presented. 
C) Note disclosure only. 
D) Not included in any manner. 
A) Blended. 
B) Discretely presented. 
C) Note disclosure only. 
D) Not included in any manner.

Question 13

Which of the following is NOT a primary government?

Accepted Answer

A) A state government. 
B) A general-purpose local government with the ability to determine its own budget. 
C) A general-purpose local government whose tax levies must be approved by the state. 
D) A special-purpose local government whose tax levies must be approved by the state. 
A) A state government. 
B) A general-purpose local government with the ability to determine its own budget. 
C) A general-purpose local government whose tax levies must be approved by the state. 
D) A special-purpose local government whose tax levies must be approved by the state.

Question 14

Governments must combine their discretely presented component units into both the fund and the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 15

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.In what manner should the foundation be presented in the financial statements of the library?

Accepted Answer

A) Blended. 
B) Discretely presented. 
C) Note disclosure only. 
D) Not included in any manner. 
A) Blended. 
B) Discretely presented. 
C) Note disclosure only. 
D) Not included in any manner.

Question 16

Public colleges and universities must adhere to the same GASB pronouncements as other types of governments.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is necessary for a special-purpose local government to be considered a primary government?

Accepted Answer

A) It must operate for a single purpose. 
B) It must have a separately elected governing body. 
C) It must tax its citizens with ad valorem taxes. 
D) It must be fiscally dependent on another government. 
A) It must operate for a single purpose. 
B) It must have a separately elected governing body. 
C) It must tax its citizens with ad valorem taxes. 
D) It must be fiscally dependent on another government.

Question 18

A special-purpose government that engages only in a single governmental-type program

Accepted Answer

A) Need not prepare fund financial statements. 
B) May combine fund and government-wide statements into a single statement. 
C) May present a government-wide income statement in a business format showing expenses deducted from revenues. 
D) Should be reported upon as a blended component unit of a general-purpose government. 
A) Need not prepare fund financial statements. 
B) May combine fund and government-wide statements into a single statement. 
C) May present a government-wide income statement in a business format showing expenses deducted from revenues. 
D) Should be reported upon as a blended component unit of a general-purpose government.

Question 19

The Hospital Foundation is a legally separate,tax-exempt 501c)3)entity organized for the purpose of raising funds to provide scholarships only to academically qualified students at the Hospital Medical School.Members of the board of the Hospital Foundation are elected by the existing board of trustees.The foundation provides scholarships to students of the Hospital Medical School,but the foundation receives no financial support from the Hospital.In what manner would the Hospital include the foundation in its financial statements?

Accepted Answer

A) Blended. 
B) Discretely presented. 
C) Consolidated. 
D) Note disclosure only. 
A) Blended. 
B) Discretely presented. 
C) Consolidated. 
D) Note disclosure only.

Question 20

One ratio measure of fiscal effort is Revenue from own sources/Intergovernmental revenues.

Accepted Answer

A) True 
 B)False

Which of the following statements is not a required part of the basic financial statements of Carlton City?

With regard to combining statements,which of the following statements is true?

A primary government can impose its will on a potential component unit if it has the authority to modify or approve the unit's budget.

Government-wide financial statements include which of the following?

Internal service funds are presented in a single column in the proprietary fund financial statements,even if one or more of them is a major fund.

When a government's Unassigned fund balance/Total operating revenues ratio is high

Required supplementary information RSI)is considered part of the basic financial statements.

Which of the following is NOT a primary government?

Governments must combine their discretely presented component units into both the fund and the government-wide statements.

Public colleges and universities must adhere to the same GASB pronouncements as other types of governments.

Which of the following is necessary for a special-purpose local government to be considered a primary government?

A special-purpose government that engages only in a single governmental-type program

One ratio measure of fiscal effort is Revenue from own sources/Intergovernmental revenues.

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters

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

Which of the following statements is not a required part of the basic financial statements of Carlton City?

With regard to combining statements,which of the following statements is true?

A primary government can impose its will on a potential component unit if it has the authority to modify or approve the unit's budget.

Government-wide financial statements include which of the following?

Internal service funds are presented in a single column in the proprietary fund financial statements,even if one or more of them is a major fund.

When a government's Unassigned fund balance/Total operating revenues ratio is high

Required supplementary information RSI)is considered part of the basic financial statements.

Which of the following is NOT a primary government?

Governments must combine their discretely presented component units into both the fund and the government-wide statements.

Public colleges and universities must adhere to the same GASB pronouncements as other types of governments.

Which of the following is necessary for a special-purpose local government to be considered a primary government?

A special-purpose government that engages only in a single governmental-type program

One ratio measure of fiscal effort is Revenue from own sources/Intergovernmental revenues.

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Fiduciary Funds and Permanent Funds

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters