Question 1

Which statement is false regarding the Balance Sheet for Governmental Fund Financial Statements?

Accepted Answer

A) The Balance Sheet for Governmental Fund Financial Statements measures only current financial resources of the governmental entity. 
B) The Balance Sheet for Governmental Fund Financial Statements uses the modified accrual method for timing purposes. 
C) Capital Assets are not reported on the Balance Sheet for Governmental Fund Financial Statements. 
D) The Balance Sheet for Governmental Fund Financial Statements measures only long-term financial resources of the governmental entity. 
E) Long-term debts are not reported on the Balance Sheet for Governmental Fund Financial Statements. 
A) The Balance Sheet for Governmental Fund Financial Statements measures only current financial resources of the governmental entity. 
B) The Balance Sheet for Governmental Fund Financial Statements uses the modified accrual method for timing purposes. 
C) Capital Assets are not reported on the Balance Sheet for Governmental Fund Financial Statements. 
D) The Balance Sheet for Governmental Fund Financial Statements measures only long-term financial resources of the governmental entity. 
E) Long-term debts are not reported on the Balance Sheet for Governmental Fund Financial Statements.

Question 2

What information is required in the introductory section of a state or local government's CAFR?

Accepted Answer

A letter of transmittal from a

Question 3

Which of the following is true regarding Management's Discussion and Analysis (MD&A)?

Accepted Answer

A) MD&A should provide an objective analysis of the financial activities based on currently known facts, decisions, or conditions. 
B) MD&A should disclose total assets and liabilities for all substantial component units. 
C) Management should provide a cash flow projection for at least three consecutive fiscal years in MD&A. 
D) MD&A is optional for city governments. 
E) MD&A is the final element of the introductory section of the comprehensive annual financial report (CAFR). 
A) MD&A should provide an objective analysis of the financial activities based on currently known facts, decisions, or conditions. 
B) MD&A should disclose total assets and liabilities for all substantial component units. 
C) Management should provide a cash flow projection for at least three consecutive fiscal years in MD&A. 
D) MD&A is optional for city governments. 
E) MD&A is the final element of the introductory section of the comprehensive annual financial report (CAFR).

Question 4

Which one of the following is a criterion for identifying a primary government?

Accepted Answer

A) it has an appointed board of directors. 
B) it is fiscally dependent. 
C) it is a local government. 
D) it has a separately elected governing board. 
E) it must prepare financial statements. 
A) it has an appointed board of directors. 
B) it is fiscally dependent. 
C) it is a local government. 
D) it has a separately elected governing board. 
E) it must prepare financial statements.

Question 5

Which criteria must be met to be considered a special purpose government?(1.)Have a separately elected governing body.(2.)Be legally independent.(3.)Be fiscally independent.

Accepted Answer

A) 1 only. 
B) 1 and 2. 
C) 2 and 3. 
D) 1 and 3. 
E) 1, 2, and 3. 
A) 1 only. 
B) 1 and 2. 
C) 2 and 3. 
D) 1 and 3. 
E) 1, 2, and 3.

Question 6

According to the GASB (Governmental Accounting Standards Board), which one of the following is not a criterion for determining whether a government is legally separate?

Accepted Answer

A) The government can determine its own budget. 
B) The government can issue bonded debt. 
C) The government has corporate powers including the right to sue and be sued. 
D) The government has the power to levy taxes. 
E) The government can issue preferred stock. 
A) The government can determine its own budget. 
B) The government can issue bonded debt. 
C) The government has corporate powers including the right to sue and be sued. 
D) The government has the power to levy taxes. 
E) The government can issue preferred stock.

Question 7

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021.
   Prepare a Statement of Activities for the year ended December 31, 2021.

Accepted Answer

The answer of The Town of Portsmouth has at the...

Question 8

All of the following about tax abatement agreements must be disclosed by state and local governments except:

Accepted Answer

A) The purpose of the tax abatement program. 
B) The type of tax being abated. 
C) Identify the companies receiving the abatements. 
D) Dollar amount of taxes abated. 
E) Commitments made by the government or other party. 
A) The purpose of the tax abatement program. 
B) The type of tax being abated. 
C) Identify the companies receiving the abatements. 
D) Dollar amount of taxes abated. 
E) Commitments made by the government or other party.

Question 9

Which of the following is false regarding defined benefit pension plans provided to employees by a state or local government?

Accepted Answer

A) Defined benefit pension plans are fully funded by the employees of a state or local government. 
B) Pension requirements create a huge financial obligation for many governments across the United States. 
C) Many state and local governments establish pension trust funds to accumulate and invest monetary resources and to pay out pension benefits. 
D) Pension trusts are classified as fiduciary funds. 
E) Pension trusts are not included in reporting government-wide financial statements. 
A) Defined benefit pension plans are fully funded by the employees of a state or local government. 
B) Pension requirements create a huge financial obligation for many governments across the United States. 
C) Many state and local governments establish pension trust funds to accumulate and invest monetary resources and to pay out pension benefits. 
D) Pension trusts are classified as fiduciary funds. 
E) Pension trusts are not included in reporting government-wide financial statements.

Question 10

All of the following are true about the modified approach to infrastructure depreciation except:

Accepted Answer

A) If specific guidelines are met, a government can choose to expense all maintenance costs each year in lieu of recording depreciation. 
B) The modified approach specifically excludes infrastructure assets within a network or subsystem of a network. 
C) If specific guidelines are met, additions and improvements must be capitalized. 
D) For eligible assets, the government must establish a minimum acceptable condition level. 
E) The government must have an asset management system in place to monitor the eligible assets. 
A) If specific guidelines are met, a government can choose to expense all maintenance costs each year in lieu of recording depreciation. 
B) The modified approach specifically excludes infrastructure assets within a network or subsystem of a network. 
C) If specific guidelines are met, additions and improvements must be capitalized. 
D) For eligible assets, the government must establish a minimum acceptable condition level. 
E) The government must have an asset management system in place to monitor the eligible assets.

Which statement is false regarding the Balance Sheet for Governmental Fund Financial Statements?

What information is required in the introductory section of a state or local government's CAFR?

Which of the following is true regarding Management's Discussion and Analysis (MD&A)?

Which one of the following is a criterion for identifying a primary government?

Which criteria must be met to be considered a special purpose government?(1.)Have a separately elected governing body.(2.)Be legally independent.(3.)Be fiscally independent.

According to the GASB (Governmental Accounting Standards Board), which one of the following is not a criterion for determining whether a government is legally separate?

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021. Prepare a Statement of Activities for the year ended December 31, 2021.

All of the following about tax abatement agreements must be disclosed by state and local governments except:

Which of the following is false regarding defined benefit pension plans provided to employees by a state or local government?

All of the following are true about the modified approach to infrastructure depreciation except:

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidationssubsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments Part 1

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Exam 12: Accounting for State and Local Governments Part 2

Which statement is false regarding the Balance Sheet for Governmental Fund Financial Statements?

What information is required in the introductory section of a state or local government's CAFR?

Which of the following is true regarding Management's Discussion and Analysis (MD&A)?

Which one of the following is a criterion for identifying a primary government?

Which criteria must be met to be considered a special purpose government?(1.)Have a separately elected governing body.(2.)Be legally independent.(3.)Be fiscally independent.

According to the GASB (Governmental Accounting Standards Board), which one of the following is not a criterion for determining whether a government is legally separate?

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021. Prepare a Statement of Activities for the year ended December 31, 2021.

All of the following about tax abatement agreements must be disclosed by state and local governments except:

Which of the following is false regarding defined benefit pension plans provided to employees by a state or local government?

All of the following are true about the modified approach to infrastructure depreciation except:

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidationssubsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments Part 1

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