Exam 9: Reporting Principles and Preparation of Fund Financial Statements

The amounts reported for assets and liabilities in the total column for the combining balance sheet for nonmajor governmental funds are also reported in the other governmental funds column of the governmental funds balance sheet.

Which of the following is a required note disclosure regarding long-term debt?

Which of the following are attributes of a special purpose government that is considered a primary government? -Able to levy taxes if approved by another government

Only general-purpose governments, like states, cities, counties, towns, and villages can be primary governments. Special purpose governmental entities, like school districts and hospitals, can never be primary governments.

Which of the following major captions are not found in the proprietary funds statement of revenues, expenses, and changes in fund net position?

The relationships between two primary governments and a third organization may be such that the third organization can be a component unit of both primary governments.

Required supplementary information for a state or local government may include budgetary comparisons, pension and other employee benefit information, and combining fund financial statements.

In Management's Discussion and Analysis (MD&A), what is the basic purpose of analyzing the government's overall financial position and results of operations?

A discussion of accounting policies regarding individual assets and liabilities is included in the significant accounting policies section of the notes to the financial statements.

To what extent should matters affecting the government's future financial position and operating results be discussed in MD&A?

Governments should prepare financial statements by major funds in both governmental and proprietary funds.

Which of the following is not listed by the GASB as an objective of governmental financial reporting?

Notes are an integral part of the financial statements because they contain information needed for fair presentation of the basic financial statements that is not displayed on the face of the statements.

Budgetary comparison schedules for the General Fund and each Special Revenue Fund that has a legally adopted budget must be presented as required supplementary information.

In the debt capacity section of the Statistical tables, which of the following ratios is not considered a valid measure of the ability of the taxpayers to finance the government's outstanding debt?

What are the GASB's requirements concerning the preparation of a statistical section of a financial report?

The GASB requires certain note disclosures regarding cash deposits. Under what circumstances are a government's deposits with financial institutions considered to be exposed to custodial credit risk?

The GASB considers accountability as an important objective of financial reporting.

How is the financial information for individual nonmajor funds displayed in the fund financial statements?

Management's Discussion & Analysis, one of several items of required supplementary information, requires a government's financial managers to provide an objective analysis of the government's financial activities and financial position.