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

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 a

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

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 the Authority upon receiving an affirmative vote by a simple majority of the board.The Housing Authority would be considered a:

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

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.

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

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?

A related organization must be incorporated into the primary government's financial statements.

The auditor's report generally includes an opinion on which of the following sections of the CAFR?

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

Which of the following statements is not a required part of the General Basic Financial Statements of the City of Highland Hills?

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

The Marsh River 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.Marsh River School District would be considered a:

Which of the following is NOT a necessary characteristic of a component unit?

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

A Comprehensive Annual Financial Report for the City of Highland Hills need not include which of the following sections?