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

Based on the data from the general fund presented below, assess (as best you can) the financial/fiscal condition of Karla city. As much as possible, justify your answer with quantitative data. (000's omitted)

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?

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

Eland City Council 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 steadily increased. As a consequence of these increased revenues, the city has begun offering a number of new services to citizens. In assessing the financial condition of the city, an analyst would conclude which of the following?

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

The Marigold 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. Marigold School District would be considered a(n):

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 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 501(c)(3) organization and does not have separate legal status. The Game and Fish Commission is an example of a:

A comprehensive annual financial report (CAFR) for Homer City need not include which of the following sections?

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 a(n):

The auditor's report generally refers to information in which of the following sections of the CAFR?

The financial section of a CAFR includes:

Which of the following is necessary for a government to be considered fiscally independent?

Government colleges and universities have several reporting options under GAAP. What are they? What financial statements would be presented under each? What basis of accounting would be used?

Discrete presentation requires combining the unit's transactions and balances as if they were part of the primary government for reporting.

Government-wide financial statements include which of the following?

Parsley City joined with two other cities to create a regional landfill authority. The initial cash investment by each community was as follows: The landfill will be governed by a seven-member board-two members chosen by each mayor and one member chosen by majority vote of the six mayoral appointees. During the first year of operation the landfill, which receives no tax dollars, generated an excess of revenues over expenses of $120,000. REQUIRED: Record the journal entries Parsley City should make under each of the mutually exclusive situations listed below, assuming that all participants have an equal equity interest in the authority. Indicate in which fund the entry is being made. a) Assume that Parsley City appropriates the $15 million contribution from its general fund resources. b) Assume that Parsley City uses the resources available in its city utility enterprise fund to make the contribution.

A special-purpose government that engages only in a single governmental-type program

A comprehensive annual financial report (CAFR) includes a statistical section. What kinds of information are found in the statistical section? To what use would a reader put the information found in the statistical section? In your opinion, is the statistical section worth the effort put into its preparation?