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

A reconciliation from Proprietary funds statements to government-wide statements is not necessary because …

Separate financial information is required to be presented for all funds.

Identify three items often found in Required Supplementary Information.

The three major sections of a CAFR are the Introductory, Financial and Statistical sections.

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

The General Fund is always a major fund for purposes of financial reporting.

Which of the following is true regarding the reporting of special purpose governments?

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

The Government-wide financial statements include separate columns for discretely presented component units.

The following information is available for the preparation of the government-wide financial statements for the Village of Warm Springs for the year ended June 30, 2009: Expenses: General government Public safety Public works Health and sanitation Culture and recreation Water and sewer system Parking system Revenues: Charges for services, general government Charges for services, public safety Operating grant, public safety Charges for services, health and sanitation Operating grant, health and sanitation Charges for services, culture and recreation Charges for services, water and sewer Charges for services, parking system Property taxes Sales taxes Other: Special item - gain on sale of park land Transfer from business-type activities to governmental Net assets, July 1, 2008 - governmental activities Net assets, July 1, 2008 - business-type activities \ 21,200,000 18,800,000 12,300,000 6,300,000 4,200,000 8,100,000 420,000 1,200,000 300,000 670,000 3,000,000 1,110,000 2,200,000 11,900,000 802,000 27,300,000 25,400,000 1,210,000 300,000 13,210,000 14,666,000 Required: From the information given above, prepare, in good form, a Statement of Activities for the Village of Warm Springs for the Year Ended June 30, 2009.

List and describe the three major sections of the Comprehensive Annual Financial Report and indicate briefly what is in each.

Funds other than the General Fund must be considered major when

Which of the following sections of the CAFR is audited?

CAFR stands for:

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

Which of the following is true regarding the proprietary funds statements?

Which part of the financial section of the CAFR is considered "Required Supplementary Information?"

According to GASB, a primary government can only be a state or a general-purpose local government, such as a city or county.

A Comprehensive Annual Financial Report (CAFR) would include an introductory section, management's discussion and analysis, basic financial statements, required supplementary information other than MD&A, combining and individual fund statements, narrative explanations and statistical section.

Which of the following is true regarding component units?