Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Governments who prepare government-wide statements are not required to prepare separate fund-level financial statements within the three categories of funds: governmental, proprietary, and fiduciary.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)   The Fund Balance of governmental funds reports fund balance as reserved and unreserved.
B)   Governmental funds include the General Fund, special revenue funds, capital projects funds, debt service funds, and permanent funds.
C)   Both A and B are true.
D)   Neither A nor B is true.

Question 5

Proprietary funds are required to prepare a Statement of Cash Flows from operating activities using the direct method.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is notone of the major sections of the Comprehensive Annual Financial Report CAFR?

Accepted Answer

A)   Budgetary
B)   Financial
C)   Introductory
D)   Statistical

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A Comprehensive Annual Financial Report CAFRwould 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 9

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 10

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

Accepted Answer

A) True 
 B)False  True

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

A) True 
 B)False  True

Question 14

Internal service funds typically are not included in the governmental activities column on the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   The government-wide financial statements include the Statement of Net Position and the Statement of Activities.
B)   The government-wide 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

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

Accepted Answer

The three major sections are introductory, financial and statistical. The introductory section includes a letter of transmittal, organization chart, and list of principal officials. The financial section includes the auditor's report, MD&A, the basic financial statements including the footnotes, other RSI, combining statements for non-major funds not reported separately in the basic financial statements, and schedules. The statistical section includes certain statistical tables indicating financial trends, revenue and debt capacity, demographic and economic information and operating information. Data is generally presented for the past 10 years.
Explanation: The three major sections are introductory, financial and statistical. The introductory section includes a letter of transmittal, organization chart, and list of principal officials. The financial section includes the auditor's report, MD&A, the basic financial statements including the footnotes, other RSI, combining statements for non-major funds not reported separately in the basic financial statements, and schedules. The statistical section includes certain statistical tables indicating financial trends, revenue and debt capacity, demographic and economic information and operating information. Data is generally presented for the past 10 years.

Question 17

With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues and expenditures combined are at least 10% of the total for the governmental funds category.

Accepted Answer

A) True 
 B)False

Question 18

Which Statement is presented using the accrual basis of accounting?

Accepted Answer

A)   Governmental Fund Balance Sheet
B)   Government-Wide Statement of Activities
C)   Statement of Revenues, Expenditure and changes in Fund Balances
D)   A and C

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

A)   The CAFR has three main sections: introductory, financial, and statistical.
B)   Required supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget unless a statement is prepared.
C)   Both of the above.
D)   Neither of the above.

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?

Correct Answer
verified

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

Correct Answer
verified

Governments who prepare government-wide statements are not required to prepare separate fund-level financial statements within the three categories of funds: governmental, proprietary, and fiduciary.

Correct Answer
verified

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

Correct Answer
verified

Proprietary funds are required to prepare a Statement of Cash Flows from operating activities using the direct method.

Correct Answer
verified

Which of the following is notone of the major sections of the Comprehensive Annual Financial Report CAFR?

Correct Answer
verified

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

Correct Answer
verified

A Comprehensive Annual Financial Report CAFRwould 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.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
True

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
True

Internal service funds typically are not included in the governmental activities column on the government-wide statements.

Correct Answer
verified

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

Correct Answer
verified

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

With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues and expenditures combined are at least 10% of the total for the governmental funds category.

Correct Answer
verified

Which Statement is presented using the accrual basis of accounting?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Governments who prepare government-wide statements are not required to prepare separate fund-level financial statements within the three categories of funds: governmental, proprietary, and fiduciary.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Proprietary funds are required to prepare a Statement of Cash Flows from operating activities using the direct method.

Correct AnswerverifiedShow Answer

Which of the following is notone of the major sections of the Comprehensive Annual Financial Report CAFR?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A Comprehensive Annual Financial Report CAFRwould 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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

Internal service funds typically are not included in the governmental activities column on the government-wide statements.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues and expenditures combined are at least 10% of the total for the governmental funds category.

Correct AnswerverifiedShow Answer

Which Statement is presented using the accrual basis of accounting?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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True

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True

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