Question 1

List the fund financial statements required by GASB Statement 34 for governmental type funds.

Accepted Answer

Governmental fund financial statements:
•Balance Sheet
•Statement of Revenues,Expenditures,and Changes in Fund Balances

Question 2

Which of the following is true regarding the reporting of major funds in the governmental funds financial statements?

Accepted Answer

A)  The General Fund is always considered a major fund. 
B)  A fund is considered major if its revenues, expenditures, assets, or liabilities exceed 10% of the total governmental fund categories and if the same element (revenues, expenditures, assets, or liabilities) exceeds 5% of the governmental and enterprise funds combined. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The General Fund is always considered a major fund. 
B)  A fund is considered major if its revenues, expenditures, assets, or liabilities exceed 10% of the total governmental fund categories and if the same element (revenues, expenditures, assets, or liabilities) exceeds 5% of the governmental and enterprise funds combined. 
C)  Both of the above. 
D)  Neither of the above. C

Question 3

Which of the following is true regarding the Comprehensive Annual Financial Report?

Accepted Answer

A)  The basic financial statements consist of the government-wide, the governmental fund, the proprietary fund, and the fiduciary fund financial statements (and the notes to the financial statements). 
B)  The government-wide financial statements include the Statement of Net Assets, the Statement of Activities, and the Statement of Cash Flows. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The basic financial statements consist of the government-wide, the governmental fund, the proprietary fund, and the fiduciary fund financial statements (and the notes to the financial statements). 
B)  The government-wide financial statements include the Statement of Net Assets, the Statement of Activities, and the Statement of Cash Flows. 
C)  Both of the above. 
D)  Neither of the above. A

Question 4

Management's Discussion and Analysis (MD&A)in The Comprehensive Annual Financial Report (CAFR)is part of the Introductory Section

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true regarding the proprietary funds statements?

Accepted Answer

A)  Major enterprise and internal service funds are reported in separate columns; a column is presented for all non-major enterprise and internal service funds (combined), and a total column is presented. 
B)  Financial statements include a Statement of Net Assets (or balance sheet), Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Major enterprise and internal service funds are reported in separate columns; a column is presented for all non-major enterprise and internal service funds (combined), and a total column is presented. 
B)  Financial statements include a Statement of Net Assets (or balance sheet), Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows. 
C)  Both of the above. 
D)  Neither of the above.

Question 6

The government-wide financial statements include a Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true regarding Government-wide financial statements?

Accepted Answer

A)  A Statement of Cash Flows is not required for Government-wide statements. 
B)  Prior year data must be presented 
C)  Depreciation can be reported in the statements or disclosed in footnotes. 
D)  Fiduciary activities are only reported if they qualify as a major fund. 
A)  A Statement of Cash Flows is not required for Government-wide statements. 
B)  Prior year data must be presented 
C)  Depreciation can be reported in the statements or disclosed in footnotes. 
D)  Fiduciary activities are only reported if they qualify as a major fund.

Question 8

A reconciliation from Enterprise funds statements to government-wide statements is not necessary because …

Accepted Answer

A)  They both use the same measurement focus and basis of accounting (economic resources, accrual) 
B)  They both use the same measurement focus and basis of accounting (current financial resources, modified accrual) 
C)  They use a different measurement focus and basis of accounting 
D)  They use a different measurement focus and basis of accounting. 
A)  They both use the same measurement focus and basis of accounting (economic resources, accrual) 
B)  They both use the same measurement focus and basis of accounting (current financial resources, modified accrual) 
C)  They use a different measurement focus and basis of accounting 
D)  They use a different measurement focus and basis of accounting.

Question 9

Fund balance is an account title used only in governmental funds to indicate the excess of assets over liabilities.

Accepted Answer

A) True 
 B)False

Question 10

An example of an expenditure classification by function would be:

Accepted Answer

A)  Current. 
B)  Public safety. 
C)  Police Department. 
D)  Salaries. 
A)  Current. 
B)  Public safety. 
C)  Police Department. 
D)  Salaries.

Question 11

When preparing fund basis financial statements,any funds not reported separately are reported individually by function.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true regarding GASB's definition of the financial reporting entity?

Accepted Answer

A)  The financial reporting entity might include a primary government, component units, joint ventures, or a jointly governed organization. 
B)  Primary governments may be general-purpose governments (such as states, cities, and counties) or special-purpose governments that have separately elected governing bodies, are legally separate and are fiscally independent of other state or local governments. 
C)  Blending is used to incorporate component units when those component units are, in substance, part of the primary government. 
D)  All of the above are true. 
A)  The financial reporting entity might include a primary government, component units, joint ventures, or a jointly governed organization. 
B)  Primary governments may be general-purpose governments (such as states, cities, and counties) or special-purpose governments that have separately elected governing bodies, are legally separate and are fiscally independent of other state or local governments. 
C)  Blending is used to incorporate component units when those component units are, in substance, part of the primary government. 
D)  All of the above are true.

Question 13

The Governmental Accounting Standards Board has established rules for determining when a government should include another entity in its financial statements.
a)Distinguish between a primary government and a component unit.Include one example of each.
b)GASB permits two methods of reporting component units in the financial reporting entity.Describe the two methods and indicate when each should be used.
c)The City of X is deciding whether or not to include a transit system in its financial report and how the transit system would be reported if a positive decision were made.The transit system is a legally separate entity,has its own governing board,not appointed by the city,has a different auditor,and issues its own financial report.The city has signed an agreement that,for the next ten years (the life of a bond issue related to transit operations),and it will make up the deficit of the transit system.During the last two years,the deficit has been $10 million,approximately 50% of the amount reported as a profit of its other enterprise operations.Make recommendations to the city,including whether or not to include the transit system and,if so,how to report it.

Accepted Answer

a)A primary government is a state or a g

Question 14

The governmental fund statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 15

Under GASB rules for the financial reporting entity:

Accepted Answer

A)  component units are included if the primary government is financially accountable for their operations. 
B)  counties are component units of the State Government. 
C)  blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements. 
D)  component units must be reported in columns (discrete presentation) separate from the funds of a primary government. 
A)  component units are included if the primary government is financially accountable for their operations. 
B)  counties are component units of the State Government. 
C)  blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements. 
D)  component units must be reported in columns (discrete presentation) separate from the funds of a primary government.

Question 16

In addition to government-wide statements,governments are required to prepare fund financial statements within which three categories of funds?

Accepted Answer

Government

Question 17

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

Accepted Answer

A)  MD&A is not considered part of Required Supplementary Information (RSI). 
B)  MD&A takes the place of footnotes. 
C)  MD&A should present an analysis of significant variations between the original and final budget. 
D)  All of the above are true. 
A)  MD&A is not considered part of Required Supplementary Information (RSI). 
B)  MD&A takes the place of footnotes. 
C)  MD&A should present an analysis of significant variations between the original and final budget. 
D)  All of the above are true.

Question 18

Which of the following is true regarding component units?

Accepted Answer

A)  Component units could include towns, school districts, counties, and municipalities. 
B)  Component units may be reported discretely in the government-wide statements or may be blended as a fund in the fund financial statements (and thus also included in the government-wide financial statements). 
C)  Both of the above. 
D)  Neither of the above. 
A)  Component units could include towns, school districts, counties, and municipalities. 
B)  Component units may be reported discretely in the government-wide statements or may be blended as a fund in the fund financial statements (and thus also included in the government-wide financial statements). 
C)  Both of the above. 
D)  Neither of the above.

Question 19

Which of the following is not one of the major sections of the Comprehensive Annual Financial Report (CAFR)?

Accepted Answer

A)  Budgetary 
B)  Financial 
C)  Introductory 
D)  Statistical 
A)  Budgetary 
B)  Financial 
C)  Introductory 
D)  Statistical

Question 20

Which of the following funds require a Statement of Cash Flows?

Accepted Answer

A)  Governmental funds 
B)  Proprietary funds 
C)  Fiduciary Funds 
D)  Governmental and Fiduciary Funds 
A)  Governmental funds 
B)  Proprietary funds 
C)  Fiduciary Funds 
D)  Governmental and Fiduciary Funds

List the fund financial statements required by GASB Statement 34 for governmental type funds.

Which of the following is true regarding the reporting of major funds in the governmental funds financial statements?

Which of the following is true regarding the Comprehensive Annual Financial Report?

Management's Discussion and Analysis (MD&A)in The Comprehensive Annual Financial Report (CAFR)is part of the Introductory Section

Which of the following is true regarding the proprietary funds statements?

The government-wide financial statements include a Statement of Cash Flows.

Which of the following is true regarding Government-wide financial statements?

A reconciliation from Enterprise funds statements to government-wide statements is not necessary because …

Fund balance is an account title used only in governmental funds to indicate the excess of assets over liabilities.

An example of an expenditure classification by function would be:

When preparing fund basis financial statements,any funds not reported separately are reported individually by function.

Which of the following is true regarding GASB's definition of the financial reporting entity?

The governmental fund statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.

Under GASB rules for the financial reporting entity:

In addition to government-wide statements,governments are required to prepare fund financial statements within which three categories of funds?

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

Which of the following is true regarding component units?

Which of the following is not one of the major sections of the Comprehensive Annual Financial Report (CAFR)?

Which of the following funds require a Statement of Cash Flows?

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

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 2: Overview of Financial Reporting for State and Local Governments

List the fund financial statements required by GASB Statement 34 for governmental type funds.

Which of the following is true regarding the reporting of major funds in the governmental funds financial statements?

Which of the following is true regarding the Comprehensive Annual Financial Report?

Management's Discussion and Analysis (MD&A)in The Comprehensive Annual Financial Report (CAFR)is part of the Introductory Section

Which of the following is true regarding the proprietary funds statements?

The government-wide financial statements include a Statement of Cash Flows.

Which of the following is true regarding Government-wide financial statements?

A reconciliation from Enterprise funds statements to government-wide statements is not necessary because …

Fund balance is an account title used only in governmental funds to indicate the excess of assets over liabilities.

An example of an expenditure classification by function would be:

When preparing fund basis financial statements,any funds not reported separately are reported individually by function.

Which of the following is true regarding GASB's definition of the financial reporting entity?

The governmental fund statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.

Under GASB rules for the financial reporting entity:

In addition to government-wide statements,governments are required to prepare fund financial statements within which three categories of funds?

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

Which of the following is true regarding component units?

Which of the following is not one of the major sections of the Comprehensive Annual Financial Report (CAFR)?

Which of the following funds require a Statement of Cash Flows?

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

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters