Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Under GASB Statement 35,public colleges and universities are permitted to report as special purpose governments engaged in:

Accepted Answer

A)  Business-type activities only. 
B)  Both governmental and business-type activities. 
C)  Governmental activities only. 
D)  Any one of the above. 
A)  Business-type activities only. 
B)  Both governmental and business-type activities. 
C)  Governmental activities only. 
D)  Any one of the above.

Question 4

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

Accepted Answer

A)  The proprietary funds Statement of Net Assets only. 
B)  The government-wide Statement of Net Assets only. 
C)  The government-wide Statement of Net Assets and the proprietary funds Statement of Net Assets. 
D)  The government-wide Statement of Net Assets and the RSI Schedule of Bonds Payable. 
A)  The proprietary funds Statement of Net Assets only. 
B)  The government-wide Statement of Net Assets only. 
C)  The government-wide Statement of Net Assets and the proprietary funds Statement of Net Assets. 
D)  The government-wide Statement of Net Assets and the RSI Schedule of Bonds Payable.

Question 5

Which of the following is true regarding fiduciary fund statements?

Accepted Answer

A)  Fiduciary fund statements include the Statement of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets. 
B)  Fiduciary fund statements are 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)  Fiduciary fund statements include the Statement of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets. 
B)  Fiduciary fund statements are 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 6

What are the five categories of fund balance on a Governmental Funds Balance Sheet?

Accepted Answer

Non-spendable Restri

Question 7

The total fund balances reported in the total column of the fund basis statements must be reconciled to the total net assets presented in the governmental activities column of the government-wide Statement of Net Assets.

Accepted Answer

A) True 
 B)False

Question 8

The Governmental Accounting Standards Board has established rules for determining when a government should include another entity in its financial statements.
a)Distinguish between a primary government and a component unit.Include one example of each.
b)GASB permits two methods of reporting component units in the financial reporting entity.Describe the two methods and indicate when each should be used.
c)The City of X is deciding whether or not to include a transit system in its financial report and how the transit system would be reported if a positive decision were made.The transit system is a legally separate entity,has its own governing board,not appointed by the city,has a different auditor,and issues its own financial report.The city has signed an agreement that,for the next ten years (the life of a bond issue related to transit operations),and it will make up the deficit of the transit system.During the last two years,the deficit has been $10 million,approximately 50% of the amount reported as a profit of its other enterprise operations.Make recommendations to the city,including whether or not to include the transit system and,if so,how to report it.

Accepted Answer

a)A primary government is a state or a g

Question 9

List the Government-wide financial statements required by GASB Statement 34.

Accepted Answer

Government

Question 10

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

Accepted Answer

A)  They both use the same measurement focus and basis of accounting (economic resources, accrual). 
B)  They both use the same measurement focus and basis of accounting (current financial resources, modified accrual). 
C)  They use a different measurement focus and basis of accounting. 
D)  They use a different measurement focus and basis of accounting 
A)  They both use the same measurement focus and basis of accounting (economic resources, accrual). 
B)  They both use the same measurement focus and basis of accounting (current financial resources, modified accrual). 
C)  They use a different measurement focus and basis of accounting. 
D)  They use a different measurement focus and basis of accounting

Question 11

In addition to the government-wide statements,governments are required to prepare fund financial statements for governmental,proprietary and fiduciary funds.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  The CAFR has three main sections: introductory, financial, and statistical. 
B)  Required Supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget (unless a statement is prepared). 
C)  Both of the above. 
D)  Neither of the above. 
A)  The CAFR has three main sections: introductory, financial, and statistical. 
B)  Required Supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget (unless a statement is prepared). 
C)  Both of the above. 
D)  Neither of the above.

Question 13

An example of an expenditure classification by function would be:

Accepted Answer

A)  Current. 
B)  Public safety. 
C)  Police Department. 
D)  Salaries. 
A)  Current. 
B)  Public safety. 
C)  Police Department. 
D)  Salaries.

Question 14

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 15

Funds other than the General Fund must be considered a major fund when

Accepted Answer

A)  total assets, liabilities, revenues, or expenditures/expenses of that fund constitute 10 percent of either the governmental or enterprise category. 
B)  total assets, liabilities, revenues, or expenditures/expenses of that fund are 5 percent of the total of the governmental and enterprise category. 
C)  conditions of either A or B exist. 
D)  conditions of both A and B exist. 
A)  total assets, liabilities, revenues, or expenditures/expenses of that fund constitute 10 percent of either the governmental or enterprise category. 
B)  total assets, liabilities, revenues, or expenditures/expenses of that fund are 5 percent of the total of the governmental and enterprise category. 
C)  conditions of either A or B exist. 
D)  conditions of both A and B exist.

Question 16

Which Statement is presented using the Accrual Basis of Accounting?

Accepted Answer

A)  Governmental Fund Balance Sheet 
B)  Government-Wide Statement of Activities 
C)  Statement of Revenues, Expenditure and changes in Fund Balances 
D)  A and C 
A)  Governmental Fund Balance Sheet 
B)  Government-Wide Statement of Activities 
C)  Statement of Revenues, Expenditure and changes in Fund Balances 
D)  A and C

Question 17

When preparing fund basis financial statements,any funds not reported separately are reported individually by function.

Accepted Answer

A) True 
 B)False

Question 18

Prior-year data may be presented but are not required on government-wide statements.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

With respect to fund basis financial statements,a government may designate any fund to be a major fund if reporting that fund separately would be useful.

Accepted Answer

A) True 
 B)False

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

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

Under GASB Statement 35,public colleges and universities are permitted to report as special purpose governments engaged in:

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 fiduciary fund statements?

What are the five categories of fund balance on a Governmental Funds Balance Sheet?

The total fund balances reported in the total column of the fund basis statements must be reconciled to the total net assets presented in the governmental activities column of the government-wide Statement of Net Assets.

List the Government-wide financial statements required by GASB Statement 34.

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

In addition to the government-wide statements,governments are required to prepare fund financial statements for governmental,proprietary and fiduciary funds.

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

An example of an expenditure classification by function would be:

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

Funds other than the General Fund must be considered a major fund when

Which Statement is presented using the Accrual Basis of Accounting?

When preparing fund basis financial statements,any funds not reported separately are reported individually by function.

Prior-year data may be presented but are not required on government-wide statements.

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

With respect to fund basis financial statements,a government may designate any fund to be a major fund if reporting that fund separately would be useful.

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

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

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

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

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

Under GASB Statement 35,public colleges and universities are permitted to report as special purpose governments engaged in:

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 fiduciary fund statements?

What are the five categories of fund balance on a Governmental Funds Balance Sheet?

The total fund balances reported in the total column of the fund basis statements must be reconciled to the total net assets presented in the governmental activities column of the government-wide Statement of Net Assets.

List the Government-wide financial statements required by GASB Statement 34.

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

In addition to the government-wide statements,governments are required to prepare fund financial statements for governmental,proprietary and fiduciary funds.

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

An example of an expenditure classification by function would be:

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

Funds other than the General Fund must be considered a major fund when

Which Statement is presented using the Accrual Basis of Accounting?

When preparing fund basis financial statements,any funds not reported separately are reported individually by function.

Prior-year data may be presented but are not required on government-wide statements.

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

With respect to fund basis financial statements,a government may designate any fund to be a major fund if reporting that fund separately would be useful.

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

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 Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters