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

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?

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 5 members of the City Council.Actions can be taken by Authority upon receiving an affirmative vote by a simple majority of the board.In what manner would the Authority be included in the City's Basic Financial Statements?

The 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 is any potential for the organization to impose any financial burden on the county.The organization is an example of a:

Government-wide financial statements include which of the following?

Fund Financial Statements include which of the following for a proprietary fund?

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

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.The County Hospital would be a

Which of the following is NOT a necessary condition for a governmental entity to be considered fiscally independent?

The introductory section of a CAFR does NOT include which of the following?

Fund financial statements for Fiduciary Funds include which of the following?

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?

Which of the following is NOT a primary government?

Which of the following is NOT required for a special purpose local government to be considered a primary government?

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 a

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 a

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 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?

The financial section of a CAFR does not include:

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

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