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

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.First City has the ability to appoint five members of the seven-person governing body of the landfill.The appointees serve for six-year terms,cannot be reappointed,and can be removed only for cause.First City has no obligation to contribute to the landfill if the landfill revenues are insufficient to cover current operating costs.The landfill would be considered an)

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

The governor of the state appoints the members of the Game and Fish Commission.The members of the commission serve ten-year terms and can be removed only for cause.State law prohibits the reappointment of a commissioner.The commission receives no tax dollars.It is supported entirely by licenses and fees paid by hunters and anglers.The only bonds that can legally be issued by the commission are revenue bonds backed by the licenses and fees paid by the sportsmen.The Game and Fish Commission is not a 501c)3)organization and does not have separate legal status.The Game and Fish Commission is an example of a:

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.The authority would be considered an)

A government's financial condition

The financial reporting entity is composed of

For a government that depreciates infrastructure,RSI likely would not include which of the following?

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,and each has an equity interest in the arrangement.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 government-wide financial statements?

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

Which of the following is a necessary characteristic of a component unit?

A county commission appoints a voting majority of the members of the board of a particular organization.The county commission cannot impose its will upon the organization.There is no potential for the organization to provide any financial benefit to the county nor is there any potential for the organization to impose any financial burden on the county.The organization is an example of an):

The introductory section of a CAFR includes which of the following?

Of the following powers possessed by Government A,which is NOT an indication that Government B should be included as a component unit of Government A?

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.The county hospital would be considered an)

A special-purpose government that engages in more than one program or in both governmental-type and business-type programs

The city created a legally separate housing authority to provide low-income housing to residents of the city.The city issues debt for the housing authority in the name of the city,but the housing authority is responsible for repayment of the debt.The housing authority is governed by a board composed of all five members of the city council.The authority can take action based on the affirmative vote of a simple majority of the board.In what manner would the authority be included in the city's basic 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 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.The county hospital would be considered an)

When a component unit is blended into the financial statements of a primary government,the resulting fund financial statements will include two general funds.

The city created a legally separate housing authority to provide low-income housing to residents of the city.The city issues debt for the housing authority in the name of the city,but the housing authority is responsible for repayment of the debt.The housing authority is governed by a board composed of all five members of the city council.Actions can be taken by the authority upon receiving an affirmative vote by a simple majority of the board.The housing authority would be considered an):

The financial section of a CAFR includes: