Question 1

A Comprehensive Annual Financial Report (CAFR)would include an introductory section,management's discussion and analysis,basic financial statements,required supplementary information other than MD&A,combining and individual fund statements,narrative explanations,and statistical section.

Accepted Answer

A) True 
 B)False

Question 2

The Government-wide financial statements include separate columns for discretely presented component units.

Accepted Answer

A) True 
 B)False

Question 3

The modified approach for infrastructure requires schedules and disclosures to be included in which part of the CAFR?

Accepted Answer

A)  Notes to the Financial Statements 
B)  Required Supplementary Information 
C)  Other Supplementary Information 
D)  Proprietary Fund Statements

Question 4

Fiduciary funds are required to prepare a Statement of Cash Flows using the direct method.

Accepted Answer

A) True 
 B)False

Question 5

Notes to the financial statements must distinguish between the primary government and discretely presented component units.

Accepted Answer

A) True 
 B)False

Question 6

In addition to a Statement of Net Assets,what statements are required in the government-wide Financial Statements?

Accepted Answer

A)  Statement of Activities. 
B)  Statement of Cash Flows. 
C)  Both of the above. 
D)  Neither of the above.

Question 7

Which of the following is one of the criteria to determine if a governmental fund is considered to be a major fund?

Accepted Answer

A)  Total assets, liabilities, revenues or expenditures of the individual governmental fund constitutes 10 percent of the governmental funds category. 
B)  Total assets, liabilities, revenues or expenditures/expenses are 5 percent of the total of the governmental and enterprise category. Other funds may be designated major funds at the discretion of management. 
C)  Both A and B are required 
D)  Either A or B will qualify a fund to be a major fund

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

The fund balance reported in the Governmental Funds Balance Sheet must be reconciled to the total net assets in the governmental activities column of the government-wide Statements of Net Assets.

Accepted Answer

A) True 
 B)False

Question 10

The statistical section typically presents ____ years of information in each table or schedule.

Accepted Answer

A)  3 
B)  5 
C)  10 
D)  12

Question 11

The fund balance reported in the Governmental Funds Balance Sheet must equal the total net assets in the governmental activities column of the government-wide Statements of Net Assets.

Accepted Answer

A) True 
 B)False

Question 12

List the fund financial statements required by GASB Statement 34 for proprietary type funds.

Accepted Answer

The answer of List the fund financial statements required by...

Question 13

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

Accepted Answer

A)  The Statement of Activities includes depreciation expense. 
B)  Transfers between governmental and business type activities are eliminated and do not appear on the government-wide Statement of Activities. 
C)  In the government-wide Statement of Activities, "special items" are those items that are both unusual and infrequent and are not under the control of management. 
D)  Taxes levied for specific functions may be reported as program revenue.

Question 14

With respect to the preparation of fund basis financial statements,governmental funds other than the major fund are considered to be major when which of the following conditions exist?

Accepted Answer

A)  With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of the individual governmental fund under consideration constitutes 25% of the total for the governmental fund category. 
B)  With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of individual governmental or enterprise fund under consideration are 15% of the total of the governmental and enterprise categories, combined. 
C)  Both A and B are required for a governmental fund to be a major fund. 
D)  Neither A nor B are correct.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

List the five categories outlined in GASB Statement 44 to be included in the statistical section of the CAFR.

Accepted Answer

The answer of List the five categories outlined in GASB...

Question 17

With respect to the preparation of fund basis financial statements,governmental funds other than the General Fund are considered to be major when which of the following conditions exist?

Accepted Answer

A)  With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of that individual governmental fund constitutes 10% of the total for the governmental fund category. 
B)  With respect to fund basis financial statements. governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of that individual governmental or enterprise fund are 5% of the total of the governmental and enterprise categories, combined. 
C)  Both A and B are required for a governmental fund to be a major fund. 
D)  Either A or B would fulfill the requirements.

Question 18

GASB Statement 34 requires supplementary information (RSI)for what two major areas?

Accepted Answer

The answer of GASB Statement 34 requires supplementary information (RSI)for...

Question 19

Identify three items often found in Required Supplementary Information.

Accepted Answer

The answer of Identify three items often found in Required...

Question 20

Governmental fund financial statements include a Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Exam 2: Overview of Financial Reporting for State and Local Governments

A Comprehensive Annual Financial Report (CAFR)would include an introductory section,management's discussion and analysis,basic financial statements,required supplementary information other than MD&A,combining and individual fund statements,narrative explanations,and statistical section.

The Government-wide financial statements include separate columns for discretely presented component units.

The modified approach for infrastructure requires schedules and disclosures to be included in which part of the CAFR?

Fiduciary funds are required to prepare a Statement of Cash Flows using the direct method.

Notes to the financial statements must distinguish between the primary government and discretely presented component units.

In addition to a Statement of Net Assets,what statements are required in the government-wide Financial Statements?

Which of the following is one of the criteria to determine if a governmental fund is considered to be a major fund?

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.

The fund balance reported in the Governmental Funds Balance Sheet must be reconciled to the total net assets in the governmental activities column of the government-wide Statements of Net Assets.

The statistical section typically presents ____ years of information in each table or schedule.

The fund balance reported in the Governmental Funds Balance Sheet must equal the total net assets in the governmental activities column of the government-wide Statements of Net Assets.

List the fund financial statements required by GASB Statement 34 for proprietary type funds.

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

With respect to the preparation of fund basis financial statements,governmental funds other than the major fund are considered to be major when which of the following conditions exist?

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

List the five categories outlined in GASB Statement 44 to be included in the statistical section of the CAFR.

With respect to the preparation of fund basis financial statements,governmental funds other than the General Fund are considered to be major when which of the following conditions exist?

GASB Statement 34 requires supplementary information (RSI)for what two major areas?

Identify three items often found in Required Supplementary Information.

Governmental fund financial statements include a Statement of Cash Flows.