Question 1

With respect to Government-wide financial statements which of the following is not required by GASB Statement 34?

Accepted Answer

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

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

The total fund balances presented in Governmental Funds Statements are different from the total net assets on the government-wide Statement of Net assets.Which of the following is not a reason for this difference?

Accepted Answer

A)   The two statements have different bases of accounting
B)   Capital assets used in government operations are not financial resources and therefore are not reported in the funds
C)   Some liabilities are not due and payable in the current period and are not reported in fund liabilities
D)   Receivables in the fund statements are reported on the statement of net assets as deferred revenue D

Question 4

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 5

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 6

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 7

The introductory and statistical sections of a CAFR are not audited.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following funds require a Statement of Cash Flows?

Accepted Answer

A)   Governmental funds
B)   Proprietary funds
C)   Fiduciary Funds
D)   Governmental and Fiduciary Funds

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

The General Fund is always considered to be a major fund when preparing fund basis financial statements.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

Proprietary FUND level financial statements include which of the following?

Accepted Answer

A)   Statement of net assets.
B)   Statement of revenues, expenses, and changes in fund net assets.
C)   Statement of cash flows.
D)   All of the above.

Question 15

Government activities which meet the tests and are determined to be component units of state and local governmental units must be discretely presented in the financial statements.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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

Question 17

The following information is available for the preparation of the government-wide financial statements for the Village of Twin Oaks for the year ended June 30,2012:
  Required:
 From the information given above,prepare,in good form,a Statement of Activities for the Village of Twin Oaks for the Year Ended June 30,2012.

Accepted Answer

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

Question 18

Identify three items often found in Required Supplementary Information.

Accepted Answer

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

Question 19

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 20

Management's Discussion and Analysis (MD&A)in the Comprehensive Annual Financial Report (CAFR)is part of the Introductory Section.

Accepted Answer

A) True 
 B)False

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

With respect to Government-wide financial statements which of the following is not required by GASB Statement 34?

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

The total fund balances presented in Governmental Funds Statements are different from the total net assets on the government-wide Statement of Net assets.Which of the following is not a reason for this difference?

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

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

The introductory and statistical sections of a CAFR are not audited.

Which of the following funds require a Statement of Cash Flows?

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

The General Fund is always considered to be a major fund when preparing fund basis financial statements.

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

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

Proprietary FUND level financial statements include which of the following?

Government activities which meet the tests and are determined to be component units of state and local governmental units must be discretely presented in the financial statements.

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

Identify three items often found in Required Supplementary Information.

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

Management's Discussion and Analysis (MD&A)in the Comprehensive Annual Financial Report (CAFR)is part of the Introductory Section.