Question 1

The introductory and statistical sections of a CAFR are required to be audited.

Accepted Answer

A) True 
 B)False  False

Question 2

The total fund balances reported in the total column of the fund basis statements must be reconciled to the total Net Position presented in the governmental activities column of the government-wide Statement of Net Position

Accepted Answer

A) True 
 B)False  True

Question 3

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

Accepted Answer

A)  The Fund Balance of governmental funds reports fund balance as reserved and unreserved. 
B)  Governmental funds include the General Fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. 
C)  Both (
A)  and (
B)  are true. 
D)  Neither (
A)  nor (
B)  is true. 
A)  The Fund Balance of governmental funds reports fund balance as reserved and unreserved. 
B)  Governmental funds include the General Fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. 
C)  Both (
A)  and (
B)  are true. 
D)  Neither (
A)  nor (
B)  is true. B

Question 4

Governmental accounting standards require the statistical section.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

A)  The government-wide financial statements include the Statement of Net Position and the Statement of Activities. 
B)  The government-wide financial statements are prepared using the current financial resources measurement focus and the modified accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The government-wide financial statements include the Statement of Net Position and the Statement of Activities. 
B)  The government-wide financial statements are prepared using the current financial resources measurement focus and the modified accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above.

Question 7

Which of the following items would likely appear in the reconciliation between the governmental fund financial statements and the governmental activities column in the government-wide financial statements?

Accepted Answer

A)  The inclusion of long-term liabilities in the government-wide financial statements and not in the governmental fund financial statements. 
B)  The inclusion of depreciation of capital assets in the governmental activities column of the government-wide financial statements and not in the governmental fund statements. 
C)  The additional accrual of some revenues and expenses in the government-wide financial statements that were not made in the governmental fund financial statements. 
D)  All of the above. 
A)  The inclusion of long-term liabilities in the government-wide financial statements and not in the governmental fund financial statements. 
B)  The inclusion of depreciation of capital assets in the governmental activities column of the government-wide financial statements and not in the governmental fund statements. 
C)  The additional accrual of some revenues and expenses in the government-wide financial statements that were not made in the governmental fund financial statements. 
D)  All of the above.

Question 8

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

Accepted Answer

A)  Management's Discussion and Analysis (MD&
A) . 
B)  Budgetary Comparison Schedule. 
C)  The Schedule of Funding Progress and Schedule of Employer Contributions when the government reports a pension trust fund. 
D)  All of the above. 
A)  Management's Discussion and Analysis (MD&
A) . 
B)  Budgetary Comparison Schedule. 
C)  The Schedule of Funding Progress and Schedule of Employer Contributions when the government reports a pension trust fund. 
D)  All of the above.

Question 9

A government may not selectively designate any fund to be a major fund even if reporting the fund separately would be useful.

Accepted Answer

A) True 
 B)False

Question 10

Notes to the financial statements must distinguish between the primary government and discretely presented component units.

Accepted Answer

A) True 
 B)False

Question 11

The government-wide financial statements present the government as a whole,including component units and including fiduciary activities.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not considered Required Supplementary Information (RSI)?

Accepted Answer

A)  Notes to the financial statements. 
B)  Budgetary Comparison Schedule. 
C)  Management's Discussion and Analysis. 
D)  None of the above; all are considered RSI. 
A)  Notes to the financial statements. 
B)  Budgetary Comparison Schedule. 
C)  Management's Discussion and Analysis. 
D)  None of the above; all are considered RSI.

Question 13

Proprietary funds are required to prepare a Statement of Cash Flows from operating activities using the direct method.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  Discrete Presentation 
B)  Blending 
C)  A and B 
D)  None of the above 
A)  Discrete Presentation 
B)  Blending 
C)  A and B 
D)  None of the above

Question 15

The three major sections of a CAFR are the Introductory,Financial,and Statistical sections.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is one of the criteria to determine if a governmental fund is considered to be a major fund?

Accepted Answer

A)  Total assets, liabilities, revenues or expenditures of the individual governmental fund constitutes 10 percent of the governmental funds category. 
B)  Total assets, liabilities, revenues or expenditures/expenses are 5 percent of the total of the governmental and enterprise category. Other funds may be designated major funds at the discretion of management. 
C)  Both A and B are required 
D)  Either A or B will qualify a fund to be a major fund 
A)  Total assets, liabilities, revenues or expenditures of the individual governmental fund constitutes 10 percent of the governmental funds category. 
B)  Total assets, liabilities, revenues or expenditures/expenses are 5 percent of the total of the governmental and enterprise category. Other funds may be designated major funds at the discretion of management. 
C)  Both A and B are required 
D)  Either A or B will qualify a fund to be a major fund

Question 17

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

Accepted Answer

A)  The governmental fund financial statements include the Balance Sheet, and the Statement of Revenues, Expenditures, and Changes in Fund Balances. 
B)  The governmental fund financial statements are prepared on the current financial resources measurement focus and modified accrual basis of accounting. 
C)  The governmental fund Balance Sheet reflects the difference of assets minus liabilities as Fund Balance. 
D)  All of the above are true. 
A)  The governmental fund financial statements include the Balance Sheet, and the Statement of Revenues, Expenditures, and Changes in Fund Balances. 
B)  The governmental fund financial statements are prepared on the current financial resources measurement focus and modified accrual basis of accounting. 
C)  The governmental fund Balance Sheet reflects the difference of assets minus liabilities as Fund Balance. 
D)  All of the above are true.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true regarding component units?

Accepted Answer

A)  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). 
B)  Component units could include towns, school districts, counties, and municipalities. 
C)  Both of the above. 
D)  Neither of the above. 
A)  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). 
B)  Component units could include towns, school districts, counties, and municipalities. 
C)  Both of the above. 
D)  Neither of the above.

Question 20

The statistical section of the CAFR contains the combining schedules of non-major funds.

Accepted Answer

A) True 
 B)False

The introductory and statistical sections of a CAFR are required to be audited.

The total fund balances reported in the total column of the fund basis statements must be reconciled to the total Net Position presented in the governmental activities column of the government-wide Statement of Net Position

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

Governmental accounting standards require the statistical section.

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

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

Which of the following items would likely appear in the reconciliation between the governmental fund financial statements and the governmental activities column in the government-wide financial statements?

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

A government may not selectively designate any fund to be a major fund even if reporting the fund separately would be useful.

Notes to the financial statements must distinguish between the primary government and discretely presented component units.

The government-wide financial statements present the government as a whole,including component units and including fiduciary activities.

Which of the following is not considered Required Supplementary Information (RSI)?

Proprietary funds are required to prepare a Statement of Cash Flows from operating activities using the direct method.

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

The three major sections of a CAFR are the Introductory,Financial,and Statistical sections.

Which of the following is one of the criteria to determine if a governmental fund is considered to be a major fund?

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

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

Which of the following is true regarding component units?

The statistical section of the CAFR contains the combining schedules of non-major funds.

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 Funds, Inter-fund Transactions

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

The introductory and statistical sections of a CAFR are required to be audited.

The total fund balances reported in the total column of the fund basis statements must be reconciled to the total Net Position presented in the governmental activities column of the government-wide Statement of Net Position

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

Governmental accounting standards require the statistical section.

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

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

Which of the following items would likely appear in the reconciliation between the governmental fund financial statements and the governmental activities column in the government-wide financial statements?

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

A government may not selectively designate any fund to be a major fund even if reporting the fund separately would be useful.

Notes to the financial statements must distinguish between the primary government and discretely presented component units.

The government-wide financial statements present the government as a whole,including component units and including fiduciary activities.

Which of the following is not considered Required Supplementary Information (RSI)?

Proprietary funds are required to prepare a Statement of Cash Flows from operating activities using the direct method.

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

The three major sections of a CAFR are the Introductory,Financial,and Statistical sections.

Which of the following is one of the criteria to determine if a governmental fund is considered to be a major fund?

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

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

Which of the following is true regarding component units?

The statistical section of the CAFR contains the combining schedules of non-major funds.

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 Funds, Inter-fund Transactions

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