Question 1

Capital assets must be itemized on governmental fund balance sheets.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

GASB provides which method(s)for including component unit financial information with that of the primary government?

Accepted Answer

A)  Discrete Presentation 
B)  Blending 
C)  A and B 
D)  None of the above

Question 5

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.

Question 6

Which of the following is true regarding financial reporting of governmental funds?

Accepted Answer

A)  Governmental funds include the General Fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. 
B)  The Fund Balance of governmental funds reports fund balance as reserved and unreserved. 
C)  Both of the above. 
D)  Neither of the above.

Question 7

The following General Fund information is available for the preparation of the financial statements for the City of Pine Cove for the year ended December 31,2012.
  Required:
 From the information given above,prepare,in good form,a General Fund Statement of Revenues,Expenditures,and Changes in Fund Balances for the City of Pine Cove for the Year Ended December 31,2012.

Accepted Answer

The answer of The following General Fund information is available...

Question 8

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

Accepted Answer

A)  The governmental fund statements include discretely presented component units that are governmental in nature. 
B)  The governmental fund statements are prepared using the current financial resources measurement focus and modified accrual accounting. 
C)  Both of the above. 
D)  Neither of the above.

Question 9

Special-purpose governments that have only business-type activities should report which of the following?

Accepted Answer

A)  Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows 
B)  Statement of Net Assets, Statement of Revenues, Expenses and Changes in Fund Net Assets 
C)  MD&A, Statement of Net Assets, Statement of Revenues, Expenses and Changes in Fund Net Assets, Notes to the Financial Statements, and RSI, other than MD&A as appropriate 
D)  Statement of Net Assets, Statement of Revenues, Expenses and Changes in Fund Net Assets, and RSI

Question 10

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 non-major 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 11

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 12

Governmental type funds label the excess of assets over liabilities on the balance sheet as:

Accepted Answer

A)  Net Assets 
B)  Net Fund Balance and Liabilities 
C)  Fund Balance 
D)  Assets Net of Liabilities

Question 13

Which of the following is true about the combining financial statements?

Accepted Answer

A)  They are used whenever a non-major column is used in one of the fund financial statements 
B)  The total column in the combining statements is not always the same as the non-major funds column in the basic financial statements 
C)  Both of the above 
D)  Neither of the above

Question 14

Governmental-wide financial statements use the economic resources measurement focus and the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

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

Question 16

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 17

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

Accepted Answer

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

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

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 20

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

Accepted Answer

A) True 
 B)False

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

Capital assets must be itemized on governmental fund balance sheets.

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

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

GASB provides which method(s) for including component unit financial information with that of the primary government?

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

Which of the following is true regarding financial reporting of governmental funds?

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

Special-purpose governments that have only business-type activities should report which of the following?

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

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

Governmental type funds label the excess of assets over liabilities on the balance sheet as:

Which of the following is true about the combining financial statements?

Governmental-wide financial statements use the economic resources measurement focus and the accrual basis of accounting.

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

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?

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

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

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

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