Question 1

A reconciliation from Proprietary funds statements to government-wide statements is not necessary because …

Accepted Answer

A)  They both use the same measurement focus and basis of accounting (economic resources, accrual). 
B)  They both use the same measurement focus and basis of accounting (current financial resources, modified accrual) 
C)  They use a different measurement focus and basis of accounting. 
D)  They use a different measurement focus and basis of accounting

Question 2

Separate financial information is required to be presented for all funds.

Accepted Answer

A) True 
 B)False

Question 3

Identify three items often found in Required Supplementary Information.

Accepted Answer

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

Question 4

The three major sections of a CAFR are the Introductory, Financial and Statistical sections.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true regarding Government-wide financial statements?

Accepted Answer

A)  Statement of Cash Flows is not required for Government-wide statements 
B)  Prior year data must be presented 
C)  Depreciation can be reported in the statements or disclosed in footnotes 
D)  Fiduciary activities are only reported if they qualify as a major fund

Question 6

The General Fund is always a major fund for purposes of financial reporting.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true regarding the reporting of special purpose governments?

Accepted Answer

A)  Special purpose governments are to prepare the same financial statements as general-purpose governments, in all cases 
B)  Special purpose governments that are governmental in nature and have more than one governmental program are allowed to prepare the governmental fund financial statements only 
C)  Special purpose governments that are governmental in nature and have only one governmental program are permitted to combine the government-wide statements and the governmental fund statements 
D)  All of the above are true

Question 8

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

Accepted Answer

A)  The Governmental Funds Balance Sheet does not reflect capital assets or long-term debt 
B)  The Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances reports columns for major funds, nonmajor funds (in total) and total 
C)  Both of the above 
D)  Neither of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The following information is available for the preparation of the government-wide financial statements for the Village of Warm Springs for the year ended June 30, 2009:
 $\begin{array}{l|r}

&
\end{array}$

\(\begin{array}{l}
\begin{array} { l } 
\text { Expenses: } & \
\text { General government } &  \
\text { Public safety } &  \
\text { Public works } & \
 \text { Health and sanitation } &\
\text { Culture and recreation } &  \
\text { Water and sewer system } &\
\text { Parking system } & \
\text { Revenues: } &  \
\text { Charges for services, general government } &\
\text { Charges for services, public safety } & \
\text { Operating grant, public safety } &  \
\text { Charges for services, health and sanitation } &  \
\text { Operating grant, health and sanitation } &  \
\text { Charges for services, culture and recreation } & \
\text { Charges for services, water and sewer } & \
\text { Charges for services, parking system } &  \
\text { Property taxes } & \
\text { Sales taxes }  \
\text { Other: } &  \
\text { Special item - gain on sale of park land } &  \
\text { Transfer from business-type activities to governmental } & \
\text { Net assets, July 1, 2008 - governmental activities } & \
\text { Net assets, July 1, 2008 - business-type activities } & \
\end{array}
\begin{array} { l } 
\$ 21,200,000 \
18,800,000 \
12,300,000 \
6,300,000 \
4,200,000 \
8,100,000 \
420,000 \
\
1,200,000 \
300,000 \
670,000 \
3,000,000 \
1,110,000 \
2,200,000 \
11,900,000 \
802,000 \
27,300,000 \
25,400,000 \
\
1,210,000 \
300,000 \
13,210,000 \
14,666,000\
\end{array}
\end{array}\)

Required: From the information given above, prepare, in good form, a Statement of Activities for the Village of Warm Springs for the Year Ended June 30, 2009.

Accepted Answer

The answer of The following information is available for the...

Question 11

List and describe the three major sections of the Comprehensive Annual Financial Report and indicate briefly what is in each.

Accepted Answer

The answer of List and describe the three major sections...

Question 12

Funds other than the General Fund must be considered major 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 13

Which of the following sections of the CAFR is audited?

Accepted Answer

A)  Introductory section 
B)  Financial section 
C)  Statistical section 
D)  Management section

Question 14

CAFR stands for:

Accepted Answer

A)  Comprehensive Annual Financial Report 
B)  Comprehensive Annual Fiscal Report 
C)  Cumulative Annual Financing Report 
D)  Comprehensive Accounting Financial Report

Question 15

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 using the current financial resources measurement focus and the modified accrual basis of accounting 
C)  Both of the above 
D)  Neither of the above

Question 16

Which of the following is true regarding the proprietary funds statements?

Accepted Answer

A)  Major enterprise and internal service funds are reported in separate columns; a column is presented for all nonmajor enterprise and internal service funds (combined) and a total column is presented 
B)  Financial statements include a Statement of Net Assets (or balance sheet), Statement of Revenues, Expenses and Changes in Fund Net Assets and Statement of Cash Flows 
C)  Both of the above 
D)  Neither of the above

Question 17

Which part of the financial section of the CAFR is considered "Required Supplementary Information?"

Accepted Answer

A)  Auditor's Report 
B)  Management's Discussion and Analysis 
C)  Government-Wide Financial Statements 
D)  Fund Financial Statements

Question 18

According to 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 19

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 20

Which of the following is true regarding component units?

Accepted Answer

A)  Component units could include park districts, school districts, counties and mosquito abatement districts 
B)  Component units may be reported discretely in the government-wide statements or may be blended as a fund in the fund financial statements (and thus also included in the government-wide financial statements) 
C)  Both of the above 
D)  Neither of the above

Exam 1: Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

A reconciliation from Proprietary funds statements to government-wide statements is not necessary because …

Separate financial information is required to be presented for all funds.

Identify three items often found in Required Supplementary Information.

The three major sections of a CAFR are the Introductory, Financial and Statistical sections.

Which of the following is true regarding Government-wide financial statements?

The General Fund is always a major fund for purposes of financial reporting.

Which of the following is true regarding the reporting of special purpose governments?

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

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

List and describe the three major sections of the Comprehensive Annual Financial Report and indicate briefly what is in each.

Funds other than the General Fund must be considered major when

Which of the following sections of the CAFR is audited?

CAFR stands for:

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

Which of the following is true regarding the proprietary funds statements?

Which part of the financial section of the CAFR is considered "Required Supplementary Information?"

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

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.

Which of the following is true regarding component units?