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

The Comprehensive Annual Financial Report (CAFR)contains four major sections: introductory,financial,supplementary,and statistical.

The following information is available for the preparation of the government-wide financial statements of the City of Aurora as of June 30,2014: Assume all long-term liabilities were incurred in the acquisition of capital assets. Required: From the information given above,prepare,in good form,a Statement of Net Assets for the City of Aurora as of June 30,2014.Include the unrestricted net assets,which is to be computed from the information presented above.Include a total column.Aurora has no component units.

Which of the following is true with respect to the General Fund

Which of the following is true regarding the government-wide Statement of Activities?

A statement of Cash Flows is required for which type of Fund?

Government-wide financial statements use the economic resources measurement focus and the accrual basis of accounting.

Where in the CAFR would one find the long-term liability for revenue bonds (paid from the revenues of an enterprise fund)?

Which of the following sections of the CAFR is audited?

GASB provides which method(s)for including component unit financial information with that of the primary government?

Funds other than the General Fund must be considered a major fund when

In addition to the government-wide statements,governments are required to prepare fund financial statements for which of the following category of funds?

Which of the following is true regarding the proprietary fund financial statements?

Governmental fund financial statements include columns for the General Fund and all other "major" governmental funds.

Which of the following is true regarding the proprietary fund financial statements?

Government-wide statements are to be prepared using the economic resources measurement focus and accrual basis of accounting.

Which of the following is not true regarding the Statement of Cash Flows for proprietary funds?

Governmental fund statements are prepared using:

Blending of financial information is done only when component units and the primary government are so intertwined that they are essentially the same.

What is the rule for determining whether a governmental fund,other than the General Fund,is a major fund?

Which of the following is considered Required Supplementary Information (RSI)?