Exam 9: Financial Reporting of State and Local Governments

The accounting system used by a state or local government must make it possible to prepare financial statements as required by the Financial Accounting Standards Board.

Which of the following is evidence of fiscal independence for the purpose of considering whether one legally separate organization is a component unit of another?

The government-wide financial statements required by GASB standards are a

In reconciling the net change in fund balances to the change in net position of governmental activities which of the following would increase the balance of change in net position of governmental activities?

A discretely presented component unit is presented as a major fund on the governmental fund financial statements.

Which of the following items are typically reported differently between the governmental fund statements and the Governmental Activities column of the government-wide statements?

Describe the objectives of financial reporting by state and local governments.

Which of the following is not one of the methods recommended by the GASB for communicating information to external users of government financial reports?

The General Fund data for a blended component unit should be reported as a special revenue fund of the primary government.

"Interim financial reports are needed for state and local governments even though external users of financial reports have no need to assess monthly or quarterly performance of the government." Do you agree? Why or why not?

Statistical tables included in comprehensive annual financial reports should provide social and economic data,in addition to financial data,to assist financial statement users in better understanding the activities and condition of the government.

Which of the following actions is not required to convert data from the governmental fund financial statements to enable preparation of the government-wide financial statements?

Which of the following would not be included within the financial section of the comprehensive annual financial report (CAFR)?

Both a general purpose and a special purpose government could be considered examples of primary governments under GAAP.

The following are key terms in Chapter 9 that relate to the reporting entity: A.Component units B.Financial reporting entity C.Financial accountability D.Joint venture E.Other stand-alone governments F.Primary governments For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition

State and local governments should prepare only those financial reports required by law-generally year-end financial statements.

Which of the following is a required program revenue category in the government-wide statement of activities?

Describe the alternative processes for capturing the financial accounting information required for government-wide financial statements.