Question 1

Which of the following is true regarding the government-wide Statement of Net Assets?

Accepted Answer

A)  Discretely presented component units are included in a separate column (or columns). 
B)  Net assets are broken down into three categories: invested in capital assets, reserved, and unreserved. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Discretely presented component units are included in a separate column (or columns). 
B)  Net assets are broken down into three categories: invested in capital assets, reserved, and unreserved. 
C)  Both of the above. 
D)  Neither of the above.

Question 2

A budgetary comparison schedule is required for?

Accepted Answer

A)  The General Fund. 
B)  Each special revenue fund that has a legally adopted annual budget. 
C)  Enterprise funds. 
D)  (
A)  and (
B)  only. 
A)  The General Fund. 
B)  Each special revenue fund that has a legally adopted annual budget. 
C)  Enterprise funds. 
D)  (
A)  and (
B)  only.

Question 3

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

Accepted Answer

A)  The Governmental Funds Balance Sheet does not reflect capital assets or long-term debt. 
B)  The Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances reports columns for major funds, non-major funds (in total), and total. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The Governmental Funds Balance Sheet does not reflect capital assets or long-term debt. 
B)  The Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances reports columns for major funds, non-major funds (in total), and total. 
C)  Both of the above. 
D)  Neither of the above.

Question 4

The statistical section of the CAFR contains the combining schedules of non-major funds.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Blending of financial information is done only when component units and the primary government are so intertwined that they are essentially the same.

Accepted Answer

A) True 
 B)False

Question 7

State and local governments are required to prepare a CAFR.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

A)  The proprietary fund financial statements include the Statement of Net Assets, the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and the Statement of Cash Flows. 
B)  The proprietary funds include enterprise, internal service, and permanent funds. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The proprietary fund financial statements include the Statement of Net Assets, the Statement of Revenues, Expenses, and Changes in Fund Net Assets, and the Statement of Cash Flows. 
B)  The proprietary funds include enterprise, internal service, and permanent funds. 
C)  Both of the above. 
D)  Neither of the above.

Question 10

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

Accepted Answer

A)  Special purpose governments are to prepare the same financial statements as general-purpose governments, in all cases. 
B)  Special purpose governments that are governmental in nature and have more than one governmental program are allowed to prepare the governmental fund financial statements only. 
C)  Special purpose governments that are governmental in nature and have only one governmental program are permitted to combine the government-wide statements and the governmental fund statements. 
D)  All of the above are true. 
A)  Special purpose governments are to prepare the same financial statements as general-purpose governments, in all cases. 
B)  Special purpose governments that are governmental in nature and have more than one governmental program are allowed to prepare the governmental fund financial statements only. 
C)  Special purpose governments that are governmental in nature and have only one governmental program are permitted to combine the government-wide statements and the governmental fund statements. 
D)  All of the above are true.

Question 11

Governmental fund statements are prepared using:

Accepted Answer

A)  Economic resources measurement focus and modified accrual basis of accounting. 
B)  Current financial resources measurement focus and modified accrual basis of accounting. 
C)  Economic resources measurement focus and accrual basis of accounting. 
D)  Current financial resources measurement focus and accrual basis of accounting. 
A)  Economic resources measurement focus and modified accrual basis of accounting. 
B)  Current financial resources measurement focus and modified accrual basis of accounting. 
C)  Economic resources measurement focus and accrual basis of accounting. 
D)  Current financial resources measurement focus and accrual basis of accounting.

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

The three major sections are introductor

Question 14

Which of the following is true with respect to the General Fund.

Accepted Answer

A)  The General Fund is considered to be a major fund if the combined total of assets, liabilities, revenues and expenses exceeds 10 of the total of all governmental funds. 
B)  The General Fund is always considered to be a major fund when preparing fund basis financial statements. 
C)  The General Fund is never considered to be a major fund when preparing fund basis financial statements. 
D)  The General Fund is not reported as part of the CAFR. 
A)  The General Fund is considered to be a major fund if the combined total of assets, liabilities, revenues and expenses exceeds 10 of the total of all governmental funds. 
B)  The General Fund is always considered to be a major fund when preparing fund basis financial statements. 
C)  The General Fund is never considered to be a major fund when preparing fund basis financial statements. 
D)  The General Fund is not reported as part of the CAFR.

Question 15

What is the rule for determining whether a governmental fund,other than the General Fund,is a major fund?

Accepted Answer

A governmental fund is considered major

Question 16

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

Accepted Answer

A)  The basic financial statements consist of the government-wide, the governmental fund, the proprietary fund, and the fiduciary fund financial statements (and the notes to the financial statements). 
B)  The government-wide financial statements include the Statement of Net Assets, the Statement of Activities, and the Statement of Cash Flows. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The basic financial statements consist of the government-wide, the governmental fund, the proprietary fund, and the fiduciary fund financial statements (and the notes to the financial statements). 
B)  The government-wide financial statements include the Statement of Net Assets, the Statement of Activities, and the Statement of Cash Flows. 
C)  Both of the above. 
D)  Neither of the above.

Question 17

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 using the current financial resources measurement focus and the modified accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above. 
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 using the current financial resources measurement focus and the modified accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true regarding component units?

Accepted Answer

A)  Component units could include towns, school districts, counties, and municipalities. 
B)  Component units may be reported discretely in the government-wide statements or may be blended as a fund in the fund financial statements (and thus also included in the government-wide financial statements). 
C)  Both of the above. 
D)  Neither of the above. 
A)  Component units could include towns, school districts, counties, and municipalities. 
B)  Component units may be reported discretely in the government-wide statements or may be blended as a fund in the fund financial statements (and thus also included in the government-wide financial statements). 
C)  Both of the above. 
D)  Neither of the above.

Question 20

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, 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, 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.

Which of the following is true regarding the government-wide Statement of Net Assets?

A budgetary comparison schedule is required for?

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

The statistical section of the CAFR contains the combining schedules of non-major funds.

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

Blending of financial information is done only when component units and the primary government are so intertwined that they are essentially the same.

State and local governments are required to prepare a CAFR.

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

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

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

Governmental fund statements are prepared using:

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

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

Which of the following is true with respect to the General Fund.

What is the rule for determining whether a governmental fund,other than the General Fund,is a major fund?

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

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

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

Which of the following is true regarding component units?

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

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

Which of the following is true regarding the government-wide Statement of Net Assets?

A budgetary comparison schedule is required for?

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

The statistical section of the CAFR contains the combining schedules of non-major funds.

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

Blending of financial information is done only when component units and the primary government are so intertwined that they are essentially the same.

State and local governments are required to prepare a CAFR.

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

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

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

Governmental fund statements are prepared using:

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

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

Which of the following is true with respect to the General Fund.

What is the rule for determining whether a governmental fund,other than the General Fund,is a major fund?

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

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

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

Which of the following is true regarding component units?

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

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