Exam 9: Financial Reporting of State and Local Governments

Under GASB standards,the financial statements that report on business-type activities at the government-wide level include the statement of net position,statement of activities,and statement of cash flows.

What constitutes the basic financial statements of a government?

Which of the following is not a category found in the statistical section of the comprehensive annual financial report (CAFR)?

Popular reports provide condensed financial information that can be used by governments to communicate financial results to citizens.

Government-wide financial statements present the government's financial position using

Some governments provide to their citizens highly condensed financial information,budget summaries,and narrative descriptions.This report is called a

In converting from the modified accrual basis of accounting information in a governmental fund to accrual basis for the government-wide statements,capital assets acquired by a governmental fund are deducted from fund balance-governmental funds to arrive at net position of governmental activities.

Where should infrastructure assets and long-term liabilities issued to finance infrastructure be reported?

Describe what the government-wide statements are intended to convey to readers and contrast with the intent of the fund financial statements.

Describe some items requiring adjustments when modified accrual basis accounting information must be converted to accrual basis accounting in preparation of government-wide statements.

GASB Concepts Statement 4 identifies expenditures as a financial statement element.

One of the required reconciliations in converting governmental fund financial statements to governmental activities statements at the government-wide level is to adjust for internal service funds' assets,liabilities,operating income (loss),and transfers.

The comprehensive annual financial report (CAFR)of a government should contain a statement of revenues,expenses,and changes in net position for

Under GASB standards,only proprietary funds prepare a statement of cash flows.

A government is financially accountable for another entity if it appoints the voting majority of the entity's governing board.

Other comprehensive bases of accounting (OCBOA)are considered generally accepted accounting principles (GAAP)for state and local governments.

For the following items that require reconciliation between governmental funds financial statements and governmental activities financial statements at the government-wide level according to GASB standards,indicate whether the reconciliation will A)always be subtracted from fund balances-governmental funds,B)always be added to fund balances-governmental funds,or C)may be added to or subtracted from fund balances-governmental funds in arriving at net position of governmental activities. _____ 1.Capital assets used in governmental activities _____ 2.Long-term liabilities that are not payable in the current period _____ 3.Net position of internal service funds that are primarily governmental in nature _____ 4.Accrued interest payable not due in the current period

Which of the following is one of the three sections of a comprehensive annual financial report?

According to the guidance of GASB Concepts Statement 3,financial information can be communicated by recognition in the financial statements,disclosure in the notes to the financial statements,presentation as required supplementary information,or presentation as supplementary information.

The three sections of the comprehensive annual financial reports of state and local governments are (1)an introductory section, (2)a financial section,and (3)a supplemental section.