Question 1

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 must be prepared for the General Fund and each major special revenue fund that has a legally adopted budget 
C)  The Budgetary Comparison Schedule is considered part of the basic financial statements 
D)  All of the above 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 must be prepared for the General Fund and each major special revenue fund that has a legally adopted budget 
C)  The Budgetary Comparison Schedule is considered part of the basic financial statements 
D)  All of the above are true

Question 2

The introductory and statistical sections of a CAFR are not audited.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true regarding the Budget-Actual Comparison Schedule?

Accepted Answer

A)  A Budget-Actual Comparison Schedule is required for the General Fund and all major special revenue funds that have a legally adopted annual budget 
B)  A Budget-Actual Comparison Statement may be prepared in lieu of the Schedule 
C)  Both of the above 
D)  Neither of the above 
A)  A Budget-Actual Comparison Schedule is required for the General Fund and all major special revenue funds that have a legally adopted annual budget 
B)  A Budget-Actual Comparison Statement may be prepared in lieu of the Schedule 
C)  Both of the above 
D)  Neither of the above

Question 4

Governmental fund financial statements include the Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

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

Question 7

Which of the following funds requires a Budgetary Comparison Schedule?

Accepted Answer

A)  Enterprise Funds 
B)  Internal Service Funds 
C)  Investment Trust Funds 
D)  General Fund 
A)  Enterprise Funds 
B)  Internal Service Funds 
C)  Investment Trust Funds 
D)  General Fund

Question 8

Which of the following is not true about the combining financial statements?

Accepted Answer

A)  They are required whenever there a nonmajor column is used in one of the fund financial statements 
B)  The total column in the combining statements is not always the same as the nonmajor funds column in the basic financial statements 
C)  Both of the above 
D)  Neither of the above 
A)  They are required whenever there a nonmajor column is used in one of the fund financial statements 
B)  The total column in the combining statements is not always the same as the nonmajor funds column in the basic financial statements 
C)  Both of the above 
D)  Neither of the above

Question 9

Government-wide statements are to be prepared using the economic resources measurement focus and accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 10

A complete CAFR includes combining financial statements to reflect major funds.

Accepted Answer

A) True 
 B)False

Question 11

The following general fund information is available for the preparation of the financial statements for the City of Lonesome Pines for the year ended December 31, 2009.
 $$\begin{array}{l}
\text { Revenues: }\
\begin{array} { l | r }

\end{array}
\end{array}$$

$\begin{array}{l}
\begin{array} { l } 
\text { Property taxes } &  \
\text { Sales taxes } & \
\text { Fines and forfeits } &  \
\text { Licenses and permits } & \
\text { Intergovernmental } &\
\text { Investment earnings } & \
\text { Expenditures: } & \
\text { Current: } &  \
\text { General government } &  \
\text { Public safety } & \
\text { Public works } & \
\text { Health and sanitation } & \
\text { Culture and recreation } &  \
\text { Other: } &\
\text { Encumbrances } & \
\text { Appropriations } &  \
\text { Estimated Revenues } & \
\text { Transfer to debt service fund } & \
\text { Special item-proceeds from sale of land } & \
\text { Fund balance, January } 1,2009 &
\end{array}
\begin{array} { l } 
\$ 26,800,000 \
10,150,000 \
1,320,000 \
1,840,000 \
890,000 \
660,000 \
\
\
8,200,000 \
20,980,000 \
6,300,000 \
1,200,000 \
2,160,000 \
\
100,000 \
41,000,000 \
42,000,000 \
1,130,000 \
620,000 \
3,200,000
\end{array}
\end{array}$
 Required: From the information given above, prepare, in good form, a General Fund Statement of Revenues, Expenditures and Changes in Fund Balances for the City of Lonesome Pines for the Year Ended December 31, 2009.

Accepted Answer

@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&CITY OF LONESOME PINES
@#LAT-DLM&@#LAT-DLM&GENERAL FUND STAT

Question 12

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

Accepted Answer

A)  The government-wide statements include a Statement of Net Assets and a Statement of Activities 
B)  The governmental activities portion of the government-wide statements is prepared using the current financial resources measurement focus and modified accrual basis of accounting 
C)  Both of the above 
D)  Neither of the above 
A)  The government-wide statements include a Statement of Net Assets and a Statement of Activities 
B)  The governmental activities portion of the government-wide statements is prepared using the current financial resources measurement focus and modified accrual basis of accounting 
C)  Both of the above 
D)  Neither of the above

Question 13

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 Fund Balances as reserved and unreserved 
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 Fund Balances as reserved and unreserved 
D)  All of the above are true

Question 14

Government-wide statements are to be prepared using the current financial resources measurement focus and modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 15

Which Statement is presented using Accrual Basis of Accounting?

Accepted Answer

A)  Governmental Fund Statements 
B)  Government-Wide Financial Statements 
C)  Statement of Revenues, Expenditure and changes in Fund Balances 
D)  A and C 
A)  Governmental Fund Statements 
B)  Government-Wide Financial Statements 
C)  Statement of Revenues, Expenditure and changes in Fund Balances 
D)  A and C

Question 16

Governmental-Wide financial statements use the economic resources measurement focus and the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 17

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 of the above 
D)  Neither of the above 
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 of the above 
D)  Neither of the above

Question 18

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

Accepted Answer

A)  The Statement of Net Assets (or Balance Sheet) reflects equity as contributed equity and retained earnings 
B)  Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements 
C)  Statements include the Statement of Net Assets (or Balance Sheet), Statement of Revenues, Expenses and Changes in Fund Net Assets and Statement of Cash Flows 
D)  The Statement of Cash Flows may be prepared using either the direct or indirect methods 
A)  The Statement of Net Assets (or Balance Sheet) reflects equity as contributed equity and retained earnings 
B)  Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements 
C)  Statements include the Statement of Net Assets (or Balance Sheet), Statement of Revenues, Expenses and Changes in Fund Net Assets and Statement of Cash Flows 
D)  The Statement of Cash Flows may be prepared using either the direct or indirect methods

Question 19

Combining statements are required whenever a nonmajor column is used in
one of the fund financial statements.

Accepted Answer

A) True 
 B)False

Question 20

Prior-year data are required to be presented on government-wide statements

Accepted Answer

A) True 
 B)False

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

The introductory and statistical sections of a CAFR are not audited.

Which of the following is true regarding the Budget-Actual Comparison Schedule?

Governmental fund financial statements include the Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances.

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

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

Which of the following funds requires a Budgetary Comparison Schedule?

Which of the following is not true about the combining financial statements?

Government-wide statements are to be prepared using the economic resources measurement focus and accrual basis of accounting.

A complete CAFR includes combining financial statements to reflect major funds.

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

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

Government-wide statements are to be prepared using the current financial resources measurement focus and modified accrual basis of accounting.

Which Statement is presented using Accrual Basis of Accounting?

Governmental-Wide financial statements use the economic resources measurement focus and the accrual basis of accounting.

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

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

Combining statements are required whenever a nonmajor column is used in one of the fund financial statements.

Prior-year data are required to be presented on government-wide statements

Overview of Financial Reporting for State and Local Governments

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 Trust Funds

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

Filters

Exam 1: Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

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

The introductory and statistical sections of a CAFR are not audited.

Which of the following is true regarding the Budget-Actual Comparison Schedule?

Governmental fund financial statements include the Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances.

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

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

Which of the following funds requires a Budgetary Comparison Schedule?

Which of the following is not true about the combining financial statements?

Government-wide statements are to be prepared using the economic resources measurement focus and accrual basis of accounting.

A complete CAFR includes combining financial statements to reflect major funds.

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

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

Government-wide statements are to be prepared using the current financial resources measurement focus and modified accrual basis of accounting.

Which Statement is presented using Accrual Basis of Accounting?

Governmental-Wide financial statements use the economic resources measurement focus and the accrual basis of accounting.

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

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

Combining statements are required whenever a nonmajor column is used in one of the fund financial statements.

Prior-year data are required to be presented on government-wide statements

Overview of Financial Reporting for State and Local Governments

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 Trust Funds

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

Filters