Question 1

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Fiduciary funds are reported in the fiduciary fund financial statements but not in the government-wide financial statements. 
B)  Agency funds would be reported in both the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds are reported in the fiduciary fund financial statements but not in the government-wide financial statements. 
B)  Agency funds would be reported in both the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. 
C)  Both of the above. 
D)  Neither of the above.

Question 2

Prior-year data may be presented but are not required on government-wide statements

Accepted Answer

A) True 
 B)False

Question 3

With respect to fund basis financial statements,governmental funds are considered to be a major fund when total assets,liabilities,revenues and expenditures combined are at least 10% of the total for the governmental funds category.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  The proprietary funds Statement of Net Position only. 
B)  The government-wide Statement of Net Position only. 
C)  The government-wide Statement of Net Position and the RSI Schedule of Bonds Payable. 
D)  The government-wide Statement of Net Position and the proprietary funds Statement of Net Position. 
A)  The proprietary funds Statement of Net Position only. 
B)  The government-wide Statement of Net Position only. 
C)  The government-wide Statement of Net Position and the RSI Schedule of Bonds Payable. 
D)  The government-wide Statement of Net Position and the proprietary funds Statement of Net Position.

Question 5

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

Accepted Answer

A)  The government-wide financial statements are not required to present prior-year data. 
B)  The government-wide financial statements include a Statement of Net Position and a Statement of Activities, but not a Statement of Cash Flows. 
C)  The government-wide financial statements include capital assets, including infrastructure, and reflect depreciation, except for infrastructure using the modified approach. 
D)  All of the above are true. 
A)  The government-wide financial statements are not required to present prior-year data. 
B)  The government-wide financial statements include a Statement of Net Position and a Statement of Activities, but not a Statement of Cash Flows. 
C)  The government-wide financial statements include capital assets, including infrastructure, and reflect depreciation, except for infrastructure using the modified approach. 
D)  All of the above are true.

Question 6

Entities which are determined to be component units of state and local governmental units must be discretely presented in the financial statements.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true regarding the Budgetary Comparison Schedule?

Accepted Answer

A)  The Budgetary Comparison Schedule compares the actual results to the original budget, but display of variances is optional. 
B)  The Budgetary Comparison Schedule is considered part of the basic financial statements. 
C)  The Budgetary Comparison Schedule must be prepared for the General Fund and each major special revenue fund that has a legally adopted budget. 
D)  Both (
A)  and (
C)  are true. 
A)  The Budgetary Comparison Schedule compares the actual results to the original budget, but display of variances is optional. 
B)  The Budgetary Comparison Schedule is considered part of the basic financial statements. 
C)  The Budgetary Comparison Schedule must be prepared for the General Fund and each major special revenue fund that has a legally adopted budget. 
D)  Both (
A)  and (
C)  are true.

Question 8

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 9

Which of the following is true regarding the composition of the Comprehensive Annual Financial Report (CAFR)?

Accepted Answer

A)  The CAFR is to include both blended and discretely presented component units. 
B)  The CAFR is required in order to be in conformity with Generally Accepted Accounting Principles (GAAP). 
C)  The CAFR contains four major sections: introductory, financial, supplementary, and statistical. 
D)  All of the above are true. 
A)  The CAFR is to include both blended and discretely presented component units. 
B)  The CAFR is required in order to be in conformity with Generally Accepted Accounting Principles (GAAP). 
C)  The CAFR contains four major sections: introductory, financial, supplementary, and statistical. 
D)  All of the above are true.

Question 10

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 Position, the Statement of Activities, and the Statement of Cash Flows. 
C)  Both (
A)  and (
B)  are true. 
D)  Neither (
A)  nor (
B)  is true. 
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 Position, the Statement of Activities, and the Statement of Cash Flows. 
C)  Both (
A)  and (
B)  are true. 
D)  Neither (
A)  nor (
B)  is true.

Question 11

The fiduciary fund financial statements are prepared using the economic financial resources measurement focus and accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 12

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 (
A)  and (
B)  are true. 
D)  Neither (
A)  nor (
B)  is true. 
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 (
A)  and (
B)  are true. 
D)  Neither (
A)  nor (
B)  is true.

Question 13

In addition to the government-wide statements,governments are required to prepare fund financial statements for governmental,proprietary and fiduciary funds.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is false?

Accepted Answer

A)  With respect to fund basis financial statements, a government may designate any fund to be a major fund if reporting that fund separately would be useful. 
B)  When preparing fund basis financial statements, any funds not reported separately are reported by function. 
C)  When preparing fund basis financial statements, any funds not reported separately are aggregated and reported in a single column under the label non-major funds. 
D)  In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds. 
A)  With respect to fund basis financial statements, a government may designate any fund to be a major fund if reporting that fund separately would be useful. 
B)  When preparing fund basis financial statements, any funds not reported separately are reported by function. 
C)  When preparing fund basis financial statements, any funds not reported separately are aggregated and reported in a single column under the label non-major funds. 
D)  In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds.

Question 15

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

Accepted Answer

Governmental fund financial st

Question 16

The government-wide financial statements do not include a Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 17

Governmental fund statements are prepared using the economic financial resources measurement focus and modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 18

The basic financial statements of a state or local governmental unit include the MD&A,government-wide statements,fund statements,and the notes.

Accepted Answer

A) True 
 B)False

Question 19

GASB requires which of the following (if applicable)to be included in the Notes to Financial Statements?

Accepted Answer

A)  Outstanding encumbrances 
B)  The definition of cash and cash equivalents used in the statement of cash flows for proprietary funds. 
C)  Interfund receivables and payables. 
D)  All of the above. 
A)  Outstanding encumbrances 
B)  The definition of cash and cash equivalents used in the statement of cash flows for proprietary funds. 
C)  Interfund receivables and payables. 
D)  All of the above.

Question 20

Governmental-type fund financial statements do not include a Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Which of the following is true regarding fiduciary funds?

Prior-year data may be presented but are not required on government-wide statements

With respect to fund basis financial statements,governmental funds are considered to be a major fund when total assets,liabilities,revenues and expenditures combined are at least 10% of the total for the governmental funds category.

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 is true regarding the government-wide financial statements?

Entities which are determined to be component units of state and local governmental units must be discretely presented in the financial statements.

Which of the following is true regarding the Budgetary Comparison Schedule?

Which of the following is true regarding the composition of the Comprehensive Annual Financial Report (CAFR)?

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

The fiduciary fund financial statements are prepared using the economic financial resources measurement focus and accrual basis of accounting.

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

In addition to the government-wide statements,governments are required to prepare fund financial statements for governmental,proprietary and fiduciary funds.

Which of the following statements is false?

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

The government-wide financial statements do not include a Statement of Cash Flows.

Governmental fund statements are prepared using the economic financial resources measurement focus and modified accrual basis of accounting.

The basic financial statements of a state or local governmental unit include the MD&A,government-wide statements,fund statements,and the notes.

GASB requires which of the following (if applicable)to be included in the Notes to Financial Statements?

Governmental-type fund financial statements do not include 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 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

Which of the following is true regarding fiduciary funds?

Prior-year data may be presented but are not required on government-wide statements

With respect to fund basis financial statements,governmental funds are considered to be a major fund when total assets,liabilities,revenues and expenditures combined are at least 10% of the total for the governmental funds category.

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 is true regarding the government-wide financial statements?

Entities which are determined to be component units of state and local governmental units must be discretely presented in the financial statements.

Which of the following is true regarding the Budgetary Comparison Schedule?

Which of the following is true regarding the composition of the Comprehensive Annual Financial Report (CAFR)?

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

The fiduciary fund financial statements are prepared using the economic financial resources measurement focus and accrual basis of accounting.

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

In addition to the government-wide statements,governments are required to prepare fund financial statements for governmental,proprietary and fiduciary funds.

Which of the following statements is false?

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

The government-wide financial statements do not include a Statement of Cash Flows.

Governmental fund statements are prepared using the economic financial resources measurement focus and modified accrual basis of accounting.

The basic financial statements of a state or local governmental unit include the MD&A,government-wide statements,fund statements,and the notes.

GASB requires which of the following (if applicable)to be included in the Notes to Financial Statements?

Governmental-type fund financial statements do not include 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 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