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

With respect to MD & A, a government may discuss any issues it deems important to the completeness of the annual report

Where in the CAFR would one find the long-term liability for revenue bonds (paid from the revenues of an enterprise fund)?

Which of the following is true regarding the composition of the Comprehensive Annual Financial Report (CAFR)?

The following information is available for the preparation of the government-wide financial statements of the City of Tall Oaks as of June 30, 2009: Accounts payable, business-type activities \ 210,000 Accounts payable, governmental activities 400,000 Capital assets, net, business-type activities 10,400,000 Capital assets, net, governmental activities 12,900,000 Cash and cash equivalents, business-type 900,000 activities Cash and cash equivalents, governmental 1,600,000 activities Inventories, business-type activities 600,000 Net assets, restricted for debt service, 400,000 business-type activities Net assets, restricted for debt service, 650,000 governmental activities 3,700,000 Noncurrent liabilities, business-type activities 5,640,000 Noncurrent liabilities, governmental activities 1,330,000 Receivables, business-type activities 500,000 Assume all long-term liabilities were incurred in the acquisition of capital assets. Required: From the information given above, prepare, in good form, a Statement of Net Assets for the City of Tall Oaks as of June 30, 2009. Include the unrestricted net assets, which is to be computed from the information presented above. Include a total column. Tall Oaks has no component units.

Which of the following is not true regarding combining fund statements?

Special-purpose governments engaged in business type activities only are required to prepare both proprietary fund and government-wide financial statements.

A budgetary comparison schedule is required for?

List the five categories outlined in GASB Statement 44 to be included in the statistical section of the CAFR.

In governmental fund statements revenues are reported by ________ and expenditures are reported by _______ and by _________.

Notes to the financial statements must distinguish between the primary government and discretely presented component units.

Governmental accounting standards do not require the statistical section.

Under GASB rules for the financial reporting entity:

A statement of Cash Flows is required for which type of Fund ?

A Comprehensive Annual Financial Report for a state or local governmental unit should contain an introductory section, a financial section and a statistical section

The fiduciary fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.

According to GASB Statement No. 44, which of the following is not a recommended category for the CAFR's statistical section?

The basic financial statements of a state or local governmental unit include the MD&A, government-wide statements, fund statements and the notes.

The government-wide financial statements are prepared using the economic resources measurement focus and accrual basis of accounting.

What statements are required in the Government-wide Financial Statements?

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