Exam 9: Financial Reporting of State and Local Governments

Explain why other comprehensive bases of accounting (OCBOA)may be used by a state or local government instead of GASBS 34 standards which are generally accepted accounting principles (GAAP).

Which of the following is an objective of financial reporting by state and local governments?

Which of the following would increase the balance in net assets-invested in capital assets,net of related debt?

Which of the following circumstances would indicate that a potential component unit (PCU)should be included as part of the governmental financial reporting entity?

Balsam City's library board is appointed by the city council which has agreed to subsidize the operating costs of the library at a material amount to be determined each year.In addition,the city is paying debt service on general obligation bonds issued to construct the library.Based on generally accepted accounting principles (GAAP)criteria for defining the reporting entity:

The comprehensive annual financial report (CAFR)of a government should contain a statement of revenues,expenses,and changes in net assets for

What constitutes the basic financial statements of a government?

Describe the objectives of financial reporting by state and local governments.

Describe the alternative processes for capturing the financial accounting information required for government-wide financial statements.

The accounting system used by a state or local government must make it possible to prepare financial statements as required by the Financial Accounting Standards Board.

State and local governments should prepare only those financial reports required by law-generally year-end financial statements.

Under GASB standards,the financial statements that report on business-type activities at the government-wide level include the statement of net assets,statement of activities,and statement of cash flows.

Which of the following actions is not required to convert data from the governmental fund financial statements to enable preparation of the government-wide financial statements?

A component unit is dependent on the primary government if the primary government is obligated for its debt.

Which of the following best describes the GASB financial reporting model for state and local governments?

Which of the following is not one of the methods recommended by the GASB for communicating information to external users of government financial reports?

Other comprehensive bases of accounting (OCBOA)are considered generally accepted accounting principles (GAAP)for state and local governments.

Which of the following items are typically reported differently between the governmental fund statements and the Governmental Activities column of the government-wide statements?

Which of the following is a required program revenue category in the government-wide statement of activities?

Which of the following would not be included within the financial section of the comprehensive annual financial report (CAFR)?