Question 1

Which of the following is true regarding the government-wide statements?

Accepted Answer

A)  The government-wide statements include a Statement of Net Position and a Statement of Activities. 
B)  The governmental activities portion of the government-wide statements is prepared using the current financial resources measurement focus and modified accrual basis of accounting. 
C)  Neither of the above. 
D)  Both of the above.

Question 2

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 3

Which of the following Sections of the CAFR is audited?

Accepted Answer

A)  Financial section 
B)  Statistical section 
C)  Management Discussion and Analysis section 
D)  Financial and statistical sections

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Public safety. 
B)  Capital outlay. 
C)  Salaries. 
D)  Debt service.

Question 6

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 7

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

Accepted Answer

A)  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. 
B)  Transfers between governmental and business type activities are eliminated and do not appear on the government-wide Statement of Activities. 
C)  The Statement of Activities includes depreciation expense. 
D)  Taxes levied, including those restricted to a particular purpose, are reported as program revenue.

Question 8

Which of the following is one of the criteria to determine if a governmental fund is considered to be a major fund?

Accepted Answer

A)  Total assets, liabilities, revenues or expenditures of the individual governmental fund constitutes 10 percent of the governmental funds category. 
B)  Total assets, liabilities, revenues or expenditures/expenses are 5 percent of the total of the governmental and enterprise category. Other funds may be designated major funds at the discretion of management. 
C)  Both A and B are required 
D)  Either A or B will qualify a fund to be a major fund

Question 9

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, non-major funds in total, and total. 
C)  Both of the above. 
D)  Neither of the above.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The introductory and statistical sections of a CAFR are required to be audited.

Accepted Answer

A) True 
 B)False

Question 12

Governmental accounting standards require the statistical section.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  The government-wide Statement of Activities may reflect expenses either by function general government, public safety, etc. or by object or natural classification salaries, supplies, etc.. 
B)  The government-wide Statement of Activities reflects taxes as general revenues. 
C)  The government-wide Statement of Activities is prepared using the modified accrual basis of accounting for governmental activities and using the accrual basis of accounting for business-type activities. 
D)  Indirect program expenses may not be allocated to the other functional areas.

Question 14

The following water and sewer information is available for the preparation of the financial statements for the County of Augusta for the year ended June 30, 2017:
 $\begin{array}{lr}
\text { Operating revenues-charges for services } & \$ 17,590,000 \
\text { Operating expenses: } & \
\text { Personal services } & 9,490,000 \
\text { Contractual services } & 1,822,000 \
\text { Utilities } & 880,000 \
\text { Repairs and maintenance } & 1,580,000 \
\text { Depreciation } & 2,640,000 \
\text { Interest revenue } & 130,000 \
\text { Interest expense } & 360,000 \
\text { Capital contributions } & 997,000 \
\text { Transfer to General Fund } & 950,000 \
\text { Net position, July 1,2016 } & 2,720,000
\end{array}$ 
Required: From the information given above, prepare, in good form, a Water and Sewer Fund column for the proprietary fund Statement of Revenues, Expenses, and Changes in Fund Net Position for the County of Augusta for the Year Ended June 30, 2017.

Accepted Answer

The answer of The following water and sewer information is...

Question 15

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 16

Governmental-type fund financial statements do not include a Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 17

In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental funds only.

Accepted Answer

A) True 
 B)False

Question 18

Because proprietary funds use a different basis of accounting than the government-wide statements, there must be a reconciliation between the two sets of statements.

Accepted Answer

A) True 
 B)False

Question 19

The government-wide financial statements present the government as a whole, including component units and including fiduciary activities.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true regarding the Comprehensive Annual Financial Report?

Accepted Answer

A)  The basic financial statements consist of the government-wide, the governmental fund, the proprietary fund, and the fiduciary fund financial statements and the notes to the financial statements. 
B)  The government-wide financial statements include the Statement of Net Position, the Statement of Activities, and the Statement of Cash Flows. 
C)  Both A and B are true. 
D)  Neither A nor B is true.

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

Which of the following is true regarding the government-wide statements?

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 Sections of the CAFR is audited?

Blending of financial information is done 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:

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

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

Which of the following is one of the criteria to determine if a governmental fund is considered to be a major fund?

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

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

The introductory and statistical sections of a CAFR are required to be audited.

Governmental accounting standards require the statistical section.

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

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?

Governmental-type fund financial statements do not include a Statement of Cash Flows.

In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental funds only.

Because proprietary funds use a different basis of accounting than the government-wide statements, there must be a reconciliation between the two sets of statements.

The government-wide financial statements present the government as a whole, including component units and including fiduciary activities.

Which of the following is true regarding the Comprehensive Annual Financial Report?