Exam 9: Financial Reporting of State and Local Governments

The three sections of the comprehensive annual financial reports of state and local governments are (1) an introductory section, (2) a financial section, and (3) a supplemental section.

The two methods for presenting component units in the financial statements are aggregated and disaggregated.

According to the Bureau of Census, which of the following would be considered a special district?

To be reported as a major component unit, a component unit must meet the same 10 percent and 5 percent size requirements as major funds.

The General Fund data for a blended component unit should be reported as a special revenue fund of the primary government.

The GASB requires that interim financial reports be prepared on a semiannual basis at a minimum.

In your own words, describe the relationships between a component unit and a primary government. Provide some examples and describe the financial reporting for a component unit.

Which of the following items are typically reported differently between the governmental fund statements and the Governmental Activities column of the government-wide statements?

Which of the following would decrease the governmental activities balance in Net Position-Net Investment in Capital Assets?

Statistical tables included in comprehensive annual financial reports should provide social and economic data, in addition to financial data, to assist financial statement users in better understanding the activities and condition of the government.

Which of the following statements concerning the reporting of expenses on the statement of activities is True?

Both a general purpose and a special purpose government could be considered examples of primary governments under GAAP.

In accordance with GASB standards, both a general purpose government and a special purpose government can be considered primary governments if certain criteria are met.

In reconciling the net change in fund balances to the change in net position of governmental activities which of the following would be added to the change in net position of governmental activities?

Which of the following would not be provided by management's discussion and analysis (MD&A)?

A discretely presented component unit is presented as a major fund on the governmental fund financial statements.

Under GASB standards, if a government only has six governmental funds and two enterprise funds how many basic financial statements would it prepare?

Which of the following statements or schedules is most likely to be prepared by a government as an interim financial report?

For the following items that require reconciliation between governmental funds financial statements and governmental activities financial statements at the government-wide level according to GASB standards, indicate which is the best appropriate terms. (A) Always be subtracted from fund balances-governmental funds. (B) Always be added to fund balances-governmental funds. (C) May be added to or subtracted from fund balances-governmental funds in arriving at net position of governmental activities. ________ 1. Capital assets used in governmental activities ________ 2. Long-term liabilities that are not payable in the current period ________ 3. Net position of internal service funds that are primarily governmental in nature ________ 4. Accrued interest payable not due in the current period

Which of the following asset amounts would be classified as restricted fund balance on the governmental funds balance sheet?