Question 1

Which of the following kinds of information would not be provided by management's discussion and analysis (MD&A)?

Accepted Answer

A)  A narrative explanation of the contents of the CAFR. 
B)  A description of the government's financial condition. 
C)  A forecast of revenues and expenditures for the next three fiscal years. 
D)  A discussion of economic factors and the budget and tax rates approved for the next year. 
A)  A narrative explanation of the contents of the CAFR. 
B)  A description of the government's financial condition. 
C)  A forecast of revenues and expenditures for the next three fiscal years. 
D)  A discussion of economic factors and the budget and tax rates approved for the next year.

Question 2

A financial reporting entity is defined as a primary government,as well as all other organizations that have an operational relationship with the primary government.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a primary objective of financial reporting by state and local governments?

Accepted Answer

A)  To provide information that can be used for capital allocation decisions made by external investors. 
B)  To report on the legal requirements imposed on the government by its elected officials. 
C)  To provide information that can be used to assess a government's accountability. 
D)  To fulfill the government's statutory duty to report on cash received and cash disbursed. 
A)  To provide information that can be used for capital allocation decisions made by external investors. 
B)  To report on the legal requirements imposed on the government by its elected officials. 
C)  To provide information that can be used to assess a government's accountability. 
D)  To fulfill the government's statutory duty to report on cash received and cash disbursed.

Question 4

A city received resources that the state indicates can only be used for public works projects,such as road construction.Assuming the resources have not been expended by year end,how would the resources the city received be shown in the city's fund balances?

Accepted Answer

A)  Spendable-Designated Fund Balance. 
B)  Spendable-Committed Fund Balance. 
C)  Spendable-Restricted Fund Balance. 
D)  Spendable-Assigned Fund Balance. 
A)  Spendable-Designated Fund Balance. 
B)  Spendable-Committed Fund Balance. 
C)  Spendable-Restricted Fund Balance. 
D)  Spendable-Assigned Fund Balance.

Question 5

Explain why other comprehensive bases of accounting (OCBOA)may be used by a state or local government instead of GASB standards which are generally accepted accounting principles (GAAP).

Accepted Answer

The answer of Explain why other comprehensive bases of accounting...

Question 6

Similar in purpose to the International Accounting Standard Board (IASB),there is also an International Public Sector Accounting Standards Board.

Accepted Answer

A) True 
 B)False

Question 7

What is meant by the term "reporting entity" in accounting for state and local governments?

Accepted Answer

The answer of What is meant by the term "reporting...

Question 8

Which of the following circumstances would indicate that a potential component unit (PCU)should be included as part of the governmental financial reporting entity?

Accepted Answer

A)  The primary government is entitled to the resources of the PCU. 
B)  Officials of the primary government appoint a majority of the members of the governing board of the PCU. 
C)  The primary government significantly influences the programs and activities of the PCU. 
D)  Officials of the primary government appoint a majority of the members of the PCU's governing board and the primary government is able to impose its will on the PCU. 
A)  The primary government is entitled to the resources of the PCU. 
B)  Officials of the primary government appoint a majority of the members of the governing board of the PCU. 
C)  The primary government significantly influences the programs and activities of the PCU. 
D)  Officials of the primary government appoint a majority of the members of the PCU's governing board and the primary government is able to impose its will on the PCU.

Question 9

Which of the following factors would not indicate that a potential component unit (PCU)imposes a financial burden or provides a financial benefit to the primary government?

Accepted Answer

A)  The primary government is entitled to its share of any dividends distributed by the PCU. 
B)  The primary government is obligated to provide financial support to the PCU. 
C)  The primary government is obligated for the PCU's debt. 
D)  The primary government is entitled to the PCU's resources. 
A)  The primary government is entitled to its share of any dividends distributed by the PCU. 
B)  The primary government is obligated to provide financial support to the PCU. 
C)  The primary government is obligated for the PCU's debt. 
D)  The primary government is entitled to the PCU's resources.

Question 10

GASB standards require that governmental fund financial statements include which of the following?

Accepted Answer

A)  Balance sheet. 
B)  Statement of activities. 
C)  Statement of cash flows. 
D)  Both A and B. 
A)  Balance sheet. 
B)  Statement of activities. 
C)  Statement of cash flows. 
D)  Both A and B.

Question 11

In your own words,describe the relationships between a component unit and a primary government.Provide some examples and describe the financial reporting for a component unit.

Accepted Answer

The answer of In your own words,describe the relationships between...

Question 12

Fiduciary activities are not reported in the government-wide financial statements under GASB standards.

Accepted Answer

A) True 
 B)False

Question 13

Under GASB standards,where are nonmajor funds are reported?

Accepted Answer

A)  In the management's discussion and analysis preceding the financial statements. 
B)  In aggregate amounts in a single column in the fund financial statements. 
C)  In a note disclosure following the financial statements. 
D)  In the government-wide financial statements. 
A)  In the management's discussion and analysis preceding the financial statements. 
B)  In aggregate amounts in a single column in the fund financial statements. 
C)  In a note disclosure following the financial statements. 
D)  In the government-wide financial statements.

Question 14

Which of the following statements concerning the reporting of internal balances by a government at the end of its fiscal year is true?

Accepted Answer

A)  The internal balances amounts reported in the balance sheet columns represent activity among governmental funds. 
B)  The internal balances amounts reported in the statement of net position columns represent activity between governmental activities and business-type activities. 
C)  The internal balances amounts are reported in both the asset and liability sections on the statement of net position. 
D)  The internal balances amounts reported represent the difference between interfund transfers in and interfund transfers out. 
A)  The internal balances amounts reported in the balance sheet columns represent activity among governmental funds. 
B)  The internal balances amounts reported in the statement of net position columns represent activity between governmental activities and business-type activities. 
C)  The internal balances amounts are reported in both the asset and liability sections on the statement of net position. 
D)  The internal balances amounts reported represent the difference between interfund transfers in and interfund transfers out.

Question 15

Balsam City's library board is appointed by the city council which has agreed to subsidize the operating costs of the library at a material amount to be determined each year.In addition,the city is paying debt service on general obligation bonds issued to construct the library.Based on generally accepted accounting principles (GAAP)criteria for defining the reporting entity:

Accepted Answer

A)  The library is a component unit. 
B)  The library is a special purpose government. 
C)  The library is a joint venture. 
D)  The library is a jointly governed organization. 
A)  The library is a component unit. 
B)  The library is a special purpose government. 
C)  The library is a joint venture. 
D)  The library is a jointly governed organization.

Question 16

Combining financial statements for nonmajor funds of a government should be included

Accepted Answer

A)  In the basic financial statements. 
B)  In the notes to the financial statements. 
C)  As a part of the financial section of the comprehensive annual financial report (CAFR). 
D)  As part of the statistical section of the comprehensive annual financial report (CAFR). 
A)  In the basic financial statements. 
B)  In the notes to the financial statements. 
C)  As a part of the financial section of the comprehensive annual financial report (CAFR). 
D)  As part of the statistical section of the comprehensive annual financial report (CAFR).

Question 17

Under GASB standards which of the following funds can report a positive amount for unassigned fund balance?

Accepted Answer

A)  Capital projects fund. 
B)  Special revenue fund. 
C)  General Fund. 
D)  All of the above. 
A)  Capital projects fund. 
B)  Special revenue fund. 
C)  General Fund. 
D)  All of the above.

Question 18

Which of the following would be reported as a nonspendable fund balance?

Accepted Answer

A)  Inventory. 
B)  Restricted assets. 
C)  Assets whose use is limited. 
D)  Capital assets. 
A)  Inventory. 
B)  Restricted assets. 
C)  Assets whose use is limited. 
D)  Capital assets.

Question 19

Under GASB standards,if a government only has six governmental funds and two enterprise funds how many basic financial statements would it prepare?

Accepted Answer

A)  Five. 
B)  Six. 
C)  Seven. 
D)  Nine. 
A)  Five. 
B)  Six. 
C)  Seven. 
D)  Nine.

Question 20

Which of the following would increase the governmental activities balance in Net Position-Net Investment in Capital Assets?

Accepted Answer

A)  Acquisition of a building to be used by the police department. 
B)  Issuance of long-term debt to be used to acquire equipment for the police department. 
C)  A gift of land to the city restricted by the donor to be used by the city airport,which is accounted for as an enterprise fund. 
D)  Recording annual depreciation on capital assets. 
A)  Acquisition of a building to be used by the police department. 
B)  Issuance of long-term debt to be used to acquire equipment for the police department. 
C)  A gift of land to the city restricted by the donor to be used by the city airport,which is accounted for as an enterprise fund. 
D)  Recording annual depreciation on capital assets.

Which of the following kinds of information would not be provided by management's discussion and analysis (MD&A)?

A financial reporting entity is defined as a primary government,as well as all other organizations that have an operational relationship with the primary government.

Which of the following is a primary objective of financial reporting by state and local governments?

A city received resources that the state indicates can only be used for public works projects,such as road construction.Assuming the resources have not been expended by year end,how would the resources the city received be shown in the city's fund balances?

Explain why other comprehensive bases of accounting (OCBOA)may be used by a state or local government instead of GASB standards which are generally accepted accounting principles (GAAP).

Similar in purpose to the International Accounting Standard Board (IASB),there is also an International Public Sector Accounting Standards Board.

What is meant by the term "reporting entity" in accounting for state and local governments?

Which of the following circumstances would indicate that a potential component unit (PCU)should be included as part of the governmental financial reporting entity?

Which of the following factors would not indicate that a potential component unit (PCU)imposes a financial burden or provides a financial benefit to the primary government?

GASB standards require that governmental fund financial statements include which of the following?

In your own words,describe the relationships between a component unit and a primary government.Provide some examples and describe the financial reporting for a component unit.

Fiduciary activities are not reported in the government-wide financial statements under GASB standards.

Under GASB standards,where are nonmajor funds are reported?

Which of the following statements concerning the reporting of internal balances by a government at the end of its fiscal year is true?

Combining financial statements for nonmajor funds of a government should be included

Under GASB standards which of the following funds can report a positive amount for unassigned fund balance?

Which of the following would be reported as a nonspendable fund balance?

Under GASB standards,if a government only has six governmental funds and two enterprise funds how many basic financial statements would it prepare?

Which of the following would increase the governmental activities balance in Net Position-Net Investment in Capital Assets?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities-Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities-Agency and Trust Funds

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters

Exam 9: Financial Reporting of State and Local Governments

Which of the following kinds of information would not be provided by management's discussion and analysis (MD&A)?

A financial reporting entity is defined as a primary government,as well as all other organizations that have an operational relationship with the primary government.

Which of the following is a primary objective of financial reporting by state and local governments?

A city received resources that the state indicates can only be used for public works projects,such as road construction.Assuming the resources have not been expended by year end,how would the resources the city received be shown in the city's fund balances?

Explain why other comprehensive bases of accounting (OCBOA)may be used by a state or local government instead of GASB standards which are generally accepted accounting principles (GAAP).

Similar in purpose to the International Accounting Standard Board (IASB),there is also an International Public Sector Accounting Standards Board.

What is meant by the term "reporting entity" in accounting for state and local governments?

Which of the following circumstances would indicate that a potential component unit (PCU)should be included as part of the governmental financial reporting entity?

Which of the following factors would not indicate that a potential component unit (PCU)imposes a financial burden or provides a financial benefit to the primary government?

GASB standards require that governmental fund financial statements include which of the following?

In your own words,describe the relationships between a component unit and a primary government.Provide some examples and describe the financial reporting for a component unit.

Fiduciary activities are not reported in the government-wide financial statements under GASB standards.

Under GASB standards,where are nonmajor funds are reported?

Which of the following statements concerning the reporting of internal balances by a government at the end of its fiscal year is true?

Combining financial statements for nonmajor funds of a government should be included

Under GASB standards which of the following funds can report a positive amount for unassigned fund balance?

Which of the following would be reported as a nonspendable fund balance?

Under GASB standards,if a government only has six governmental funds and two enterprise funds how many basic financial statements would it prepare?

Which of the following would increase the governmental activities balance in Net Position-Net Investment in Capital Assets?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities-Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities-Agency and Trust Funds

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

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