Question 1

In addition to the government-wide statements,governments are required to prepare fund financial statements for which of the following category of funds?

Accepted Answer

A)  Proprietary funds 
B)  Governmental type funds 
C)  Fiduciary funds 
D)  All of the above

Question 2

What are the five categories of fund balance on a Governmental Funds Balance Sheet?

Accepted Answer

The answer of What are the five categories of fund...

Question 3

In addition to government-wide statements,governments are required to prepare fund financial statements within which three categories of funds?

Accepted Answer

The answer of In addition to government-wide statements,governments are required...

Question 4

Funds other than the General Fund must be considered a major fund when

Accepted Answer

A)  Total assets, liabilities, revenues, or expenditures/expenses of that fund constitute 10 percent of either the governmental or enterprise category. 
B)  Total assets, liabilities, revenues, or expenditures/expenses of that fund are 5 percent of the total of the governmental and enterprise category. 
C)  Conditions of either A or B exist. 
D)  Conditions of both A and B exist.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

The General Fund is not always considered to be a major fund when preparing fund basis financial statements.

Accepted Answer

A) True 
 B)False

Question 8

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 (
B)  are true. 
D)  Neither (
A)  nor (
B)  is true.

Question 9

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

Accepted Answer

A)  General revenues include items such as charges for services and program fees. 
B)  Fiduciary activities are included. 
C)  Both of the above. 
D)  Neither of the above.

Question 10

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 11

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 12

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.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true regarding the reporting of Budget-Actual Comparisons?

Accepted Answer

A)  A Budget-Actual Comparison Schedule is required for the General Fund and all major special revenue funds that have a legally adopted annual budget. 
B)  A Budget-Actual Comparison Statement may be prepared in lieu of the Schedule. 
C)  Both (
A)  and (
B)  are true. 
D)  Neither (
A)  nor (
B)  is true.

Question 14

Prior-year data are required to be presented on government-wide statements

Accepted Answer

A) True 
 B)False

Question 15

Blending of financial information is done only when component units and the primary government are so intertwined that they are essentially the same.

Accepted Answer

A) True 
 B)False

Question 16

An example of an expenditure classification by function for a governmental fund would be:

Accepted Answer

A)  Current. 
B)  Salaries. 
C)  Police Department. 
D)  Public safety.

Question 17

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

Accepted Answer

A)  Fiduciary fund financial statements include the Statement of Fiduciary Net Position, the Statement of Changes in Fiduciary Net Position, and the Statement of Cash Flows prepared on the direct method. 
B)  Fiduciary fund financial statements are prepared on the current financial resources measurement focus and modified accrual accounting. 
C)  Both (
A)  and (
B)  are true. 
D)  Neither (
A)  nor (
B)  is true.

Question 18

What are the three major sections of the Comprehensive Annual Financial Report?

Accepted Answer

A)  Introductory Section, Financial Section, Budgetary Comparison 
B)  Introductory Section, Financial Section, Management Discussion and Analysis. 
C)  Introductory Section, Financial Section, Statistical Section 
D)  Introductory Section, Financial Section, Reporting Infrastructure

Question 19

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

Accepted Answer

A)  Discretely presented component units are included in a separate column (or columns). 
B)  Net Position is displayed in three categories: net investment in capital assets, reserved, and unreserved. 
C)  Both of the above. 
D)  Neither of the above.

Question 20

With respect to Government-wide financial statements,which of the following is not required by GASB?

Accepted Answer

A)  Statement of Cash Flow 
B)  Statement of Net Position 
C)  Statement of Activities 
D)  All of the above are required by GASB Statement 34

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

In addition to the government-wide statements,governments are required to prepare fund financial statements for which of the following category of funds?

What are the five categories of fund balance on a Governmental Funds Balance Sheet?

In addition to government-wide statements,governments are required to prepare fund financial statements within which three categories of funds?

Funds other than the General Fund must be considered a major fund when

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

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

The General Fund is not always considered to be a major fund when preparing fund basis financial statements.

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

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

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

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?

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.

Which of the following is true regarding the reporting of Budget-Actual Comparisons?

Prior-year data are required to be presented on government-wide statements

Blending of financial information is done only when component units and the primary government are so intertwined that they are essentially the same.

An example of an expenditure classification by function for a governmental fund would be:

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

What are the three major sections of the Comprehensive Annual Financial Report?

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

With respect to Government-wide financial statements,which of the following is not required by GASB?