Exam 2: Principles of Accounting and Financial Reporting for State and Local Governments

Because budgetary accounts are used by governments,their financial statements can never be said to be in accord with generally accepted accounting principles.

Individual fund financial information is reported in separate columns of governmental and proprietary fund financial statements for only those funds that meet the GASB size-related criteria as major funds.

All capital assets acquired by or used by a fund should be reported in the fund balance sheet or statement of net assets.

Capital assets used by an enterprise fund should be accounted for in the

Which of the following funds would be used to account for an activity that provides centralized purchasing and sales of goods or services to other departments or agencies of the governmental,or to other governments,on a cost-reimbursement basis?

List the seven fund financial statements that are required as part of the basic financial statements by GASB standards.What measurement focus and basis of accounting should be used in preparing each of these statements?

Governmental funds are identical to governmental activities,proprietary funds are identical to business-type activities,and fiduciary funds are identical to fiduciary activities of a government.

Distinguish between a blended presentation of financial data for a component unit and a discrete presentation.

Which of the following is not a characteristic of a fund as defined by GASB standards?

Describe the comprehensive annual financial report (CAFR)described in the Annual Financial Reports principle.What are the sections of the report and which components of the organization should it include? Is a CAFR required?