Question 1

With respect to MD & A, a government may discuss any issues it deems important to the completeness of the annual report

Accepted Answer

A) True 
 B)False

Question 2

Where in the CAFR would one find the long-term liability for revenue bonds (paid from the revenues of an enterprise fund)?

Accepted Answer

A)  The proprietary funds Statement of Net Assets only 
B)  The government-wide Statement of Net Assets only 
C)  The government-wide Statement of Net Assets and the proprietary funds Statement of Net Assets 
D)  The government-wide Statement of Net Assets and the RSI Schedule of Bonds Payable

Question 3

Which of the following is true regarding the composition of the Comprehensive Annual Financial Report (CAFR)?

Accepted Answer

A)  The CAFR is required in order to be in conformity with Generally Accepted Accounting Principles (GAAP) 
B)  The CAFR is to include both blended and discretely presented component units 
C)  The CAFR contains four major sections: introductory, financial, supplementary and statistical 
D)  All of the above are true

Question 4

The following information is available for the preparation of the government-wide financial statements of the City of Tall Oaks as of June 30, 2009:
 \[\begin{array} { l r } 
\text { Accounts payable, business-type activities } & \$ 210,000 \
\hline \text { Accounts payable, governmental activities } & 400,000 \
\hline \text { Capital assets, net, business-type activities } & 10,400,000 \
\hline \text { Capital assets, net, governmental activities } & 12,900,000 \
\hline \text { Cash and cash equivalents, business-type } & 900,000 \
\text { activities } & \
\text { Cash and cash equivalents, governmental } & 1,600,000 \
\text { activities } & \
\hline \text { Inventories, business-type activities } & 600,000 \
\hline \text { Net assets, restricted for debt service, } & 400,000 \
\text { business-type activities } & \
\text { Net assets, restricted for debt service, } & 650,000 \
\text { governmental activities } & 3,700,000 \
\text { Noncurrent liabilities, business-type } & \
\text { activities } & 5,640,000 \
\hline \text { Noncurrent liabilities, governmental } & \
\text { activities } & 1,330,000 \
\text { Receivables, business-type activities } & 500,000
\end{array}\] Assume all long-term liabilities were incurred in the acquisition of capital assets.
Required: From the information given above, prepare, in good form, a Statement of Net Assets for the City of Tall Oaks as of June 30, 2009. Include the unrestricted net assets, which is to be computed from the information presented above. Include a total column. Tall Oaks has no component units.

Accepted Answer

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

Question 5

Which of the following is not true regarding combining fund statements?

Accepted Answer

A)  Combining statements are part of other supplementary information 
B)  All nonmajor funds are included in the combining statements 
C)  Combining statements for nonmajor funds are required for governmental funds only 
D)  The total column in the combining statements is equal to the nonmajor funds column in the basic financial statements

Question 6

Special-purpose governments engaged in business type activities only are required to prepare both proprietary fund and government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 7

A budgetary comparison schedule is required for?

Accepted Answer

A)  The general fund 
B)  Each special revenue fund that has a legally adopted annual budget 
C)  Enterprise funds 
D)  (
A)  and (
B)  only

Question 8

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 9

In governmental fund statements revenues are reported by ________ and expenditures are reported by _______ and by _________.

Accepted Answer

A)  Source, character, function 
B)  Source, source, character 
C)  Function, character, source 
D)  Function, function, source

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Governmental accounting standards do not require the statistical section.

Accepted Answer

A) True 
 B)False

Question 12

Under GASB rules for the financial reporting entity:

Accepted Answer

A)  Component units are included if the primary government is financially accountable for their operations 
B)  Counties are component units of the State Government 
C)  Blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements 
D)  Component units must be reported in columns (discrete presentation) separate from the funds of a primary government

Question 13

A statement of Cash Flows is required for which type of Fund ?

Accepted Answer

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

Question 14

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 15

The fiduciary fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 16

According to GASB Statement No. 44, which of the following is not a recommended category for the CAFR's statistical section?

Accepted Answer

A)  Financial trends information 
B)  Debt capacity information 
C)  Comparative information 
D)  Operating information

Question 17

The basic financial statements of a state or local governmental unit include the MD&A, government-wide statements, fund statements and the notes.

Accepted Answer

A) True 
 B)False

Question 18

The government-wide financial statements are prepared using the economic resources measurement focus and accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 19

What statements are required in the Government-wide Financial Statements?

Accepted Answer

A)  Statement of Net Assets 
B)  Statement of Activities 
C)  Cash Flow Statement 
D)  Both A and B

Question 20

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

Accepted Answer

A)  Fiduciary fund financial statements include the Statement of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets 
B)  Fiduciary fund financial statements are prepared on the current financial resources measurement focus and modified accrual accounting 
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

With respect to MD & A, a government may discuss any issues it deems important to the completeness of the annual report

Where in the CAFR would one find the long-term liability for revenue bonds (paid from the revenues of an enterprise fund) ?

Which of the following is true regarding the composition of the Comprehensive Annual Financial Report (CAFR) ?

Which of the following is not true regarding combining fund statements?

Special-purpose governments engaged in business type activities only are required to prepare both proprietary fund and government-wide financial statements.

A budgetary comparison schedule is required for?

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

In governmental fund statements revenues are reported by ____ and expenditures are reported by _ and by _______.

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

Governmental accounting standards do not require the statistical section.

Under GASB rules for the financial reporting entity:

A statement of Cash Flows is required for which type of 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

The fiduciary fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.

According to GASB Statement No. 44, which of the following is not a recommended category for the CAFR's statistical section?

The basic financial statements of a state or local governmental unit include the MD&A, government-wide statements, fund statements and the notes.

The government-wide financial statements are prepared using the economic resources measurement focus and accrual basis of accounting.

What statements are required in the Government-wide Financial Statements?

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