Exam 9: Financial Reporting of State and Local Governments

"Interim financial reports are needed for state and local governments even though external users of financial reports have no need to assess monthly or quarterly performance of the government." Do you agree? Why or why not?

Describe the alternative processes for capturing the financial accounting information required for government-wide financial statements.

The following are key terms in Chapter 9 that relate to the reporting entity: A.Component unit B.Financial reporting entity C.Financial accountability D.Joint venture E.Other stand-alone government F.Primary government For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.

The comprehensive annual financial report (CAFR)of a government should contain a statement of revenues,expenses,and changes in net position for :

Which of the following is a primary objective of financial reporting by state and local governments?

In reconciling the net change in fund balances to the change in net position of governmental activities which of the following would be added to the change in net position of governmental activities?

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

Which of the following circumstances would indicate that a potential component unit (PCU)should be included as part of the government financial reporting entity?

Popular reports provide condensed financial information that can be used by governments to communicate financial results to citizens.

The accounting system used by a state or local government must make it possible to prepare financial statements as required by the Financial Accounting Standards Board.

Which of the following would not be included within the financial section of the comprehensive annual financial report (CAFR)?

What constitutes the basic financial statements of a government?

Which of the following statements concerning interfund transfers is ?

Government-wide financial statements present the government's financial position using the:

Other comprehensive bases of accounting (OCBOA)are considered generally accepted accounting principles (GAAP)for state and local governments.

In your own words,describe the relationships between a component unit and a primary government.Provide some examples and describe the financial reporting for a component unit.

Which of the following are government-wide financial statements required by GASB standards?

The two methods for presenting component units in the financial statements are aggregated and disaggregated.

Where should infrastructure assets and long-term liabilities issued to finance infrastructure be reported?

Which of the following is not a category found in the statistical section of the comprehensive annual financial report (CAFR)?