Exam 9: Financial Reporting of State and Local Governments

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?

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(Multiple Choice)

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Question 1

Correct Answer:

Verified

In reconciling between the governmental fund and government-wide statements,capital assets acquired by a governmental fund are deducted from fund balance-governmental funds to arrive at net position of governmental activities.

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(True/False)

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Question 2

Correct Answer:

Verified

False

Describe some items requiring adjustments when modified accrual basis accounting information must be converted to accrual basis accounting in preparation of government-wide statements.

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(Essay)

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Question 3

Correct Answer:

Verified

Items requiring adjustment when going from modified accrual basis of accounting to accrual basis of accounting include: (1)capital expenditures are reclassified as capital assets, (2)annual depreciation on capital assets is recognized, (3)other financing sources from bonds are reclassified as long-term liabilities, (4)interest on long-term debt is recorded, (5)internal service activity is moved from proprietary funds to be reported with governmental activities, (6)transfers and balances between funds are netted and balances between governmental and business-type activities are reported as internal balances,and (7)interfund transfers between governmental funds and internal service funds are eliminated.

A not-for-profit organization could be reported as a component unit of a primary government.

(True/False)

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Question 4

The GASB defines a component unit as any organization for which the primary government is financially accountable.

(True/False)

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Question 5

According to the guidance of GASB Concepts Statement 3,financial information can be communicated by recognition in the financial statements,disclosure in the notes to the financial statements,presentation as required supplementary information,or presentation as supplementary information.

(True/False)

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Question 6

Which of the following would increase the governmental activities balance in Net Position-Net Investment in Capital Assets?

(Multiple Choice)

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Question 7

The GASB requires that interim financial reports be prepared on a semi-annual basis at a minimum.

(True/False)

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Question 8

Which of the following factors would not indicate that a potential component unit (PCU)imposes a financial burden or provides a financial benefit to the primary government?

(Multiple Choice)

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Question 9

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

(True/False)

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Question 10

Which of the following statements concerning the reporting of expenses on the statement of activities is ?

(Multiple Choice)

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Question 11

Under GASB standards,the financial statements that report on business-type activities at the government-wide level include the statement of net position,statement of activities,and statement of cash flows.

(True/False)

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Question 12

Which of the following statements concerning the reporting of internal balances by a government at the end of its fiscal year is ?

(Multiple Choice)

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Question 13

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

(True/False)

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Question 14

Combining financial statements for nonmajor funds of a government should be included

(Multiple Choice)

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Question 15

Which of the following is not one of the methods recommended by the GASB Concepts Statement 3 for communicating information to external users of government financial reports?

(Multiple Choice)

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Question 16

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

(Multiple Choice)

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Question 17

Some governments provide to their citizens highly condensed financial information,budget summaries,and narrative descriptions.This report is called a(an)

(Multiple Choice)

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Question 18

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

(Multiple Choice)

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Question 19

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

(True/False)

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Question 20

Showing 1 - 20 of 65

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?

In reconciling between the governmental fund and government-wide statements,capital assets acquired by a governmental fund are deducted from fund balance-governmental funds to arrive at net position of governmental activities.

Describe some items requiring adjustments when modified accrual basis accounting information must be converted to accrual basis accounting in preparation of government-wide statements.

A not-for-profit organization could be reported as a component unit of a primary government.

The GASB defines a component unit as any organization for which the primary government is financially accountable.

According to the guidance of GASB Concepts Statement 3,financial information can be communicated by recognition in the financial statements,disclosure in the notes to the financial statements,presentation as required supplementary information,or presentation as supplementary information.

Which of the following would increase the governmental activities balance in Net Position-Net Investment in Capital Assets?

The GASB requires that interim financial reports be prepared on a semi-annual basis at a minimum.

Which of the following factors would not indicate that a potential component unit (PCU)imposes a financial burden or provides a financial benefit to the primary government?

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

Which of the following statements concerning the reporting of expenses on the statement of activities is ?

Under GASB standards,the financial statements that report on business-type activities at the government-wide level include the statement of net position,statement of activities,and statement of cash flows.

Which of the following statements concerning the reporting of internal balances by a government at the end of its fiscal year is ?

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

Combining financial statements for nonmajor funds of a government should be included

Which of the following is not one of the methods recommended by the GASB Concepts Statement 3 for communicating information to external users of government financial reports?

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

Some governments provide to their citizens highly condensed financial information,budget summaries,and narrative descriptions.This report is called a(an)

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

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

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

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts Budgetary Accounting

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activitiesagency and Trust Funds

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizationsregulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government Glossary

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