Exam 9: Financial Reporting of State and Local Governments

In converting from the modified accrual basis of accounting information in a governmental fund to accrual basis for the government-wide statements,capital assets acquired by a governmental fund are deducted from fund balance-governmental funds to arrive at net assets of governmental activities.

Which of the following factors would not indicate that a potential component unit (PCU)is dependent on the primary government?

Describe what the government-wide statements are intended to convey to readers and contrast with the intent of the fund financial statements.

The Clinton school district is a legally separate organization,but two of its seven board members are also city council members and the district is financially dependent upon the city.The school district should be reported as a

Government-wide financial statements present the government's financial position using

In your own words,describe the relationships between a component unit and a primary government.Provide some examples and describe the financial reporting for a component unit.

According to the guidance of GASB Concepts Statement 3,financial information can be communicated by recognition in the financial statements,disclosure in the notes to the financial statements,presentation as required supplementary information,or presentation as supplementary information.

Fiduciary activities are not reported in the government-wide financial statements under GASB standards.

Describe some items requiring adjustments when modified accrual basis accounting information must be converted to accrual basis accounting in preparation of government-wide statements.

Which of the following is one of the three sections of a comprehensive annual financial report?