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

A Management's Discussion and Analysis is required for state and local governmental units, but not the federal government.

GASB Concepts Statement No. 3, Communication Methods in General Purpose External Financial Reports that Contain Basic Financial Statements, states that

The ___________ is the government's official annual report prepared and published as a matter of public record.

The Financial Accounting Standards Board sets financial reporting standards for private sector organizations, except nongovernmental, not-for-profit organizations.

The GASB is under the oversight of:

The Federal Accounting Standards Advisory Board requires less extensive reports than does the FASB or GASB.

An organization is presumed to be governmental if it has the ability to issue directly debt that is exempt from federal taxes.

Fiduciary funds are to use the:

Governmental activities fund statements must be changed to the accrual basis from the modified accrual basis when preparing government-wide financial statements.

A city government sells police cars no longer in use. No restrictions have been placed on the proceeds. Which fund should account for the receipt?

One objective of the Governmental Accounting Standards Board is to help users determine compliance with finance-related laws, rules and regulations

The Governmental Accounting Standards Board considers the financial reporting entity to include the primary government and its component units.

Which of the following is true regarding fund classifications?

Contrast the economic resources measurement focus and the current financial resources measurement focus with regard to the accounting treatment of capital assets.

Permanent funds can be either a governmental fund or a fiduciary fund where only income on donated assets may be spent.