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

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

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 an

The Friends of the City Public Library Foundation is a legally separate, tax-exempt 501c3 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.The Foundation would be considered an

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 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

Fund financial statements include which of the following for a governmental fund?

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?

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

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

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

The University Foundation is a legally separate, tax-exempt 501c3 entity organized for the purpose of raising funds to provide scholarships only to academically qualified students at State University.Members of the board of the University Foundation are elected by the existing Board of Trustees.The Foundation provides scholarships to students of State University, but the Foundation receives no financial support from the University.The Foundation would be considered an

Government-wide financial statements include which of the following?

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

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 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?

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 501c3 organization and does not have separate legal status.The Game and Fish Commission is an example of a:

The city council of the City of Highland Hills has adopted a policy of aggressively pursuing grants and other resource inflows from other levels of government.Over the past several years, the proportion of total City revenues that comes from other levels of government has been steadily increasing.As a consequence of these increased revenues, the City has begun offering a number of new services to the citizens of the City.In assessing the financial condition of the City of Highland Hills, an analyst would conclude 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.The Authority would be considered an

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?

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