Exam 15: Financial Reportingthe Comprehensive Annual Financial Report and the Financial Reporting Entity

Which of the following financial statements would not be reported anywhere in the fund financial statements presented as part of the basic financial statements?

Which of the following scenarios does not describe governing boards of a primary government and a potential component unit that are substantially the same?

If a state has three discretely presented component units, two of which are "governmental" in nature and one of which is "business-type" in nature, what is the minimum number of discretely presented component unit columns that can be reported in the government-wide statements?

The independent auditor's report is normally included within

The governing board of the City of Wheaton is also the governing board of Mosquito Abatement District, a business-type activity. A benefit or burden relationship exists between the city and the district. Which of the following statements regarding the financial reporting options is false?

In discrete presentation, component unit

How should information about each major discretely presented component unit be presented in the financial statements?

All of the following statistical tables should include ten individual years of trend information except

If a primary government reports a discretely presented component unit, then the primary government must

Blended and discretely presented component units may issue separate financial statements. Which of the following statements is false related to this provision in GAAP?

Which fund types report the results of operations using a Statement of Revenues, Expenditures, and Changes in Fund Balances?

A city has three related entities. Its finance and accounting staff is trying to determine which, if any, of those entities must be included in the city reporting entity. Also, for the entities that are included the staff must determine whether they are to be blended or discretely presented. Explain how each of the related entities should be treated and why. Situations: 1. The first entity is the city school district. The district has a separately elected board and is legally separate from the city. The school board can establish its own budget except that its property tax levy must be approved by the city council. The city does not guarantee the debt of the schools or have any other authority over the school district. 2. The second entity is the municipal gas utility. The city appoints the seven members of the utility governing board and can remove them at will. The city must approve the budget and the rate structure of the utility. The utility cannot issue bonded debt without the city council's prior approval. The city is entitled to, and regularly receives, the operating surpluses of the utility. 3. The third entity is the City Library Commission. According to the commission's charter, the commission board consists of the city mayor, the city finance director, and the superintendent of the city schools, and two other members of city council besides the mayor. City council consists of the mayor and four other council members. The library commission budget must be approved by the city council, and all long-term debt issued by the Library Commission is to be repaid by the city.

Britt County has seven discretely presented component units. Three of the component units are considered "governmental" in nature and the remaining four are considered "business-type" in nature. How many columns for the discretely presented component units would be reported on the General Fund balance sheet?

Whether or not to declare a fund as being major is not optional for

Which of the following is not part of the financial section of a comprehensive annual financial report?

Assume that a government has three nonmajor Enterprise Funds. Which of the following statements regarding the reporting requirements in a CAFR is false?

The City of Newport appointed the original governing board of the Newport Historical Association, at which point the board became self-sustaining. The city has historically but voluntarily provided funding for the Association for the past several years. The city of Newport should

A "dual opinion" audit is one where

In the statistical section, the required demographic and economic information includes all of the following except

The Mount Pilot Airport Authority is governed by a seven-member board. Four of the board members are appointed by the town of Mount Pilot and the remaining three are appointed by the governing board of Griffith County. Neither the town nor the county share in any profits, nor are required to fund any deficits, of the Authority. The town, however, does approve the Authority's proposed budget. The county may make budgetary recommendations to the Authority, but they are not required to approve the proposed budget. The Authority should be reported as