Question 1

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 considered to be a major fund when preparing fund basis financial statements if it bears a financial benefit or burden to the primary government. 
C)  The General Fund is always 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 considered to be a major fund when preparing fund basis financial statements if it bears a financial benefit or burden to the primary government. 
C)  The General Fund is always 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 2

A Comprehensive Annual Financial Report for a state or local governmental unit should contain an introductory section, a financial section, and a statistical section

Accepted Answer

A) True 
 B)False

Question 3

List the basic financial statements required by GASB for fiduciary type funds.

Accepted Answer

Fiduciary fund financial statements:
Sta

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  A reporting entity primary government plus component units total column is required. 
B)  The government-wide Statement of Net Position reflects capital assets, net of accumulated depreciation, for both governmental and business-type activities. 
C)  The government-wide Statement of Net Position must be prepared in a classified format; that is, both assets and liabilities must be separated between current and long-term categories. 
D)  The government-wide Statement of Net Position includes all resources entrusted to the government; including governmental, proprietary, and fiduciary. 
A)  A reporting entity primary government plus component units total column is required. 
B)  The government-wide Statement of Net Position reflects capital assets, net of accumulated depreciation, for both governmental and business-type activities. 
C)  The government-wide Statement of Net Position must be prepared in a classified format; that is, both assets and liabilities must be separated between current and long-term categories. 
D)  The government-wide Statement of Net Position includes all resources entrusted to the government; including governmental, proprietary, and fiduciary.

Question 6

When performing an audit of the CAFR, auditors review the material to establish that it is not misleading in relation to the basic statements but do not include the MD&A in the scope of the audit.

Accepted Answer

A) True 
 B)False

Question 7

Combining statements are required whenever a non-major column is used in one of the fund financial statements.

Accepted Answer

A) True 
 B)False

Question 8

State and local governments are not required to prepare a CAFR.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not correct with respect to major enterprise funds?

Accepted Answer

A)  Any funds not reported separately are aggregated and reported in a single column under the label nonmajor funds. 
B)  A government may designate any fund as a major fund if reporting that fund separately would be useful. 
C)  The general fund is not classified as a major fund if it does not meet the 10% and 5% tests for a major fund. 
D)  If the reporting government is preparing a complete CAFR, a schedule showing the detail of nonmajor funds is provided in the other supplementary information section. 
A)  Any funds not reported separately are aggregated and reported in a single column under the label nonmajor funds. 
B)  A government may designate any fund as a major fund if reporting that fund separately would be useful. 
C)  The general fund is not classified as a major fund if it does not meet the 10% and 5% tests for a major fund. 
D)  If the reporting government is preparing a complete CAFR, a schedule showing the detail of nonmajor funds is provided in the other supplementary information section.

Question 10

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 Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows. 
B)  The proprietary funds include enterprise, internal service, and permanent funds. 
C)  Both A and Bare true. 
D)  Neither A nor B is true. 
A)  The proprietary fund financial statements include the Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows. 
B)  The proprietary funds include enterprise, internal service, and permanent funds. 
C)  Both A and Bare true. 
D)  Neither A nor B is true.

Question 11

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 on the current financial resources measurement focus and modified accrual basis of accounting. 
C)  The governmental fund Balance Sheet reflects the residual equity as Fund Balance. 
D)  All of the above are true. 
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 on the current financial resources measurement focus and modified accrual basis of accounting. 
C)  The governmental fund Balance Sheet reflects the residual equity as Fund Balance. 
D)  All of the above are true.

Question 12

According to the GASB, a primary government can only be a state or a general-purpose local government, such as a city or county.

Accepted Answer

A) True 
 B)False

Question 13

Fund balance is an account title used only in governmental funds to indicate the excess of assets over liabilities.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is false?

Accepted Answer

A)  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. 
B)  When preparing fund basis financial statements, any funds not reported separately are reported by function. 
C)  When preparing fund basis financial statements, any funds not reported separately are aggregated and reported in a single column under the label non-major funds. 
D)  In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds. 
A)  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. 
B)  When preparing fund basis financial statements, any funds not reported separately are reported by function. 
C)  When preparing fund basis financial statements, any funds not reported separately are aggregated and reported in a single column under the label non-major funds. 
D)  In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds.

Question 15

Which of the following is false regarding major fund reporting for governmental funds?

Accepted Answer

A)  The General Fund is always a major fund. 
B)  Each fund that is considered major must be reported in a separate column in the governmental funds financial statements. 
C)  A government may designate any fund as major if it feels that reporting that fund in the basic financial statements would be useful. 
D)  None of the above, all are true. 
A)  The General Fund is always a major fund. 
B)  Each fund that is considered major must be reported in a separate column in the governmental funds financial statements. 
C)  A government may designate any fund as major if it feels that reporting that fund in the basic financial statements would be useful. 
D)  None of the above, all are true.

Question 16

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 Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows. 
B)  The proprietary fund financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The proprietary fund financial statements include the Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows. 
B)  The proprietary fund financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above.

Question 17

The Comprehensive Annual Financial Report CAFR contains four major sections: introductory, financial, supplementary, and statistical.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Fiduciary funds are reported in the fiduciary fund financial statements but not in the government-wide financial statements. 
B)  Agency funds would be reported in both the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds are reported in the fiduciary fund financial statements but not in the government-wide financial statements. 
B)  Agency funds would be reported in both the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. 
C)  Both of the above. 
D)  Neither of the above.

Question 20

Prior year balances are required to be presented in government-wide statements.

Accepted Answer

A) True 
 B)False

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

A Comprehensive Annual Financial Report for a state or local governmental unit should contain an introductory section, a financial section, and a statistical section

List the basic financial statements required by GASB for fiduciary type funds.

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

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

When performing an audit of the CAFR, auditors review the material to establish that it is not misleading in relation to the basic statements but do not include the MD&A in the scope of the audit.

Combining statements are required whenever a non-major column is used in one of the fund financial statements.

State and local governments are not required to prepare a CAFR.

Which of the following is not correct with respect to major enterprise funds?

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

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

According to the GASB, a primary government can only be a state or a general-purpose local government, such as a city or county.

Fund balance is an account title used only in governmental funds to indicate the excess of assets over liabilities.

Which of the following statements is false?

Which of the following is false regarding major fund reporting for governmental funds?

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

The Comprehensive Annual Financial Report CAFR contains four major sections: introductory, financial, supplementary, and statistical.

Which of the following is true regarding fiduciary funds?

Prior year balances are required to be presented in government-wide 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 Funds, Interfund Transactions

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 with respect to the General Fund

A Comprehensive Annual Financial Report for a state or local governmental unit should contain an introductory section, a financial section, and a statistical section

List the basic financial statements required by GASB for fiduciary type funds.

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

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

When performing an audit of the CAFR, auditors review the material to establish that it is not misleading in relation to the basic statements but do not include the MD&A in the scope of the audit.

Combining statements are required whenever a non-major column is used in one of the fund financial statements.

State and local governments are not required to prepare a CAFR.

Which of the following is not correct with respect to major enterprise funds?

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

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

According to the GASB, a primary government can only be a state or a general-purpose local government, such as a city or county.

Fund balance is an account title used only in governmental funds to indicate the excess of assets over liabilities.

Which of the following statements is false?

Which of the following is false regarding major fund reporting for governmental funds?

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

The Comprehensive Annual Financial Report CAFR contains four major sections: introductory, financial, supplementary, and statistical.

Which of the following is true regarding fiduciary funds?

Prior year balances are required to be presented in government-wide 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 Funds, Interfund Transactions

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