Question 1

Which of the following is a measure of the extent to which the government's business-type activities are self-supporting?

Accepted Answer

A)  Unrestricted net position/total revenues. 
B)  Business-type activities revenues/business-type activities expenses. 
C)  Total net position (governmental activities and business-type activities) less total net position at the beginning of the year divided by total beginning net position. 
D)  Total revenues/total expenses. 
A)  Unrestricted net position/total revenues. 
B)  Business-type activities revenues/business-type activities expenses. 
C)  Total net position (governmental activities and business-type activities) less total net position at the beginning of the year divided by total beginning net position. 
D)  Total revenues/total expenses.

Question 2

One measure of interperiod equity is whether net revenues are exceeding a government's total expenses.

Accepted Answer

A) True 
 B)False

Question 3

A large intergovernmental revenues ratio can be viewed as a positive sign concerning a government's financial condition.

Accepted Answer

A) True 
 B)False

Question 4

Factors common to the bond rating agencies' risk assessment are the economy and a government's debts.

Accepted Answer

A) True 
 B)False

Question 5

"Financial statements are virtually useless in evaluating a city's financial condition." Do you agree with this statement? Why or why not?

Accepted Answer

Disagree. While it is True that much use

Question 6

The term that is closely related to the concept of liquidity is:

Accepted Answer

A)  Financial condition. 
B)  Interperiod equity. 
C)  Financial position. 
D)  Economic condition. 
A)  Financial condition. 
B)  Interperiod equity. 
C)  Financial position. 
D)  Economic condition.

Question 7

Which of the following statements about credit analysts' models is True?

Accepted Answer

A)  Credit analysts focus primarily on demographic statistics and management's long-term investment strategies. 
B)  Credit analysts have access to the same set of information that internal managers use. 
C)  Credit analysts are concerned with assessing a government's ability to pay interest and principal on debt when due. 
D)  Credit analysts rarely use comprehensive annual financial reports. 
A)  Credit analysts focus primarily on demographic statistics and management's long-term investment strategies. 
B)  Credit analysts have access to the same set of information that internal managers use. 
C)  Credit analysts are concerned with assessing a government's ability to pay interest and principal on debt when due. 
D)  Credit analysts rarely use comprehensive annual financial reports.

Question 8

A measure of whether the government lived within its means in the measurement year, or was required to use prior year resources to fund a portion of current year costs, or shifted the funding of some current year costs to future periods, is:

Accepted Answer

A)  Business-type activities revenues/business-type activities expenses. 
B)  Unrestricted net position/total revenues. 
C)  Net revenues/total expenses. 
D)  Total net position (governmental activities and business-type activities) less total net position at the beginning of the year divided by beginning net position. 
A)  Business-type activities revenues/business-type activities expenses. 
B)  Unrestricted net position/total revenues. 
C)  Net revenues/total expenses. 
D)  Total net position (governmental activities and business-type activities) less total net position at the beginning of the year divided by beginning net position.

Question 9

To provide a meaningful interpretation of a financial ratio a benchmark is needed.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following trends is most likely to be a signal of impending fiscal stress?

Accepted Answer

A)  An increasing ratio of own source revenues to total revenues. 
B)  A decreasing ratio of total revenues to total expenditures. 
C)  A decreasing ratio of debt service expenditures to operating revenues. 
D)  A decreasing ratio of operating expenditures to total revenues. 
A)  An increasing ratio of own source revenues to total revenues. 
B)  A decreasing ratio of total revenues to total expenditures. 
C)  A decreasing ratio of debt service expenditures to operating revenues. 
D)  A decreasing ratio of operating expenditures to total revenues.

Question 11

How do credit analysts assist decision makers in evaluating the credit worthiness of a state or local government?

Accepted Answer

Credit analysts, such as those with Mood

Question 12

Political culture, such as attitudes towards taxes, is an example in the ICMA's Financial Trend Monitoring Systems of:

Accepted Answer

A)  Environmental factors. 
B)  Organizational factors. 
C)  Financial factors. 
D)  Management practices and legislative policies. 
A)  Environmental factors. 
B)  Organizational factors. 
C)  Financial factors. 
D)  Management practices and legislative policies.

Question 13

Which ratio or concept describes the extent to which the government has lived within its means for the year?

Accepted Answer

A)  Debt to assets. 
B)  Interperiod equity. 
C)  Current ratio. 
D)  Revenue dispersion. 
A)  Debt to assets. 
B)  Interperiod equity. 
C)  Current ratio. 
D)  Revenue dispersion.

Question 14

The key cause of municipal financial crises is the failure of management to raise taxes quickly enough in response to adverse environmental factors.

Accepted Answer

A) True 
 B)False

Question 15

Management practices and legislative policies are very relevant in the evaluation of a government's financial performance.

Accepted Answer

A) True 
 B)False

Question 16

Explain the relationships among environmental factors, organizational factors, and financial factors in determining government financial condition.

Accepted Answer

Environmental factors (e.g., community n

Question 17

Which of the following is one of the most important reasons for evaluating a government's financial performance?

Accepted Answer

A)  Determine if property taxes and other revenue sources should be increased. 
B)  Assign responsibility for success or failure of the government to certain parties. 
C)  Determine whether the government is accomplishing its mission. 
D)  Have an early warning of impending financial difficulty for a diverse set of decision makers. 
A)  Determine if property taxes and other revenue sources should be increased. 
B)  Assign responsibility for success or failure of the government to certain parties. 
C)  Determine whether the government is accomplishing its mission. 
D)  Have an early warning of impending financial difficulty for a diverse set of decision makers.

Question 18

Fiscal capacity is the government's ongoing ability and willingness to supply the capital and human resources needed to meet its commitments to provide services.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following terms best describes a government's ongoing ability and willingness to meet its financial obligations and service commitments as they become due?

Accepted Answer

A)  Financial condition. 
B)  Fiscal capacity. 
C)  Economic condition. 
D)  Financial position. 
A)  Financial condition. 
B)  Fiscal capacity. 
C)  Economic condition. 
D)  Financial position.

Question 20

Electronic Municipal Market Access (EMMA) is a source of all state and local government comprehensive annual financial reports (CAFRs).

Accepted Answer

A) True 
 B)False

Which of the following is a measure of the extent to which the government's business-type activities are self-supporting?

One measure of interperiod equity is whether net revenues are exceeding a government's total expenses.

A large intergovernmental revenues ratio can be viewed as a positive sign concerning a government's financial condition.

Factors common to the bond rating agencies' risk assessment are the economy and a government's debts.

"Financial statements are virtually useless in evaluating a city's financial condition." Do you agree with this statement? Why or why not?

The term that is closely related to the concept of liquidity is:

Which of the following statements about credit analysts' models is True?

A measure of whether the government lived within its means in the measurement year, or was required to use prior year resources to fund a portion of current year costs, or shifted the funding of some current year costs to future periods, is:

To provide a meaningful interpretation of a financial ratio a benchmark is needed.

Which of the following trends is most likely to be a signal of impending fiscal stress?

How do credit analysts assist decision makers in evaluating the credit worthiness of a state or local government?

Political culture, such as attitudes towards taxes, is an example in the ICMA's Financial Trend Monitoring Systems of:

Which ratio or concept describes the extent to which the government has lived within its means for the year?

The key cause of municipal financial crises is the failure of management to raise taxes quickly enough in response to adverse environmental factors.

Management practices and legislative policies are very relevant in the evaluation of a government's financial performance.

Explain the relationships among environmental factors, organizational factors, and financial factors in determining government financial condition.

Which of the following is one of the most important reasons for evaluating a government's financial performance?

Fiscal capacity is the government's ongoing ability and willingness to supply the capital and human resources needed to meet its commitments to provide services.

Which of the following terms best describes a government's ongoing ability and willingness to meet its financial obligations and service commitments as they become due?

Electronic Municipal Market Access (EMMA) is a source of all state and local government comprehensive annual financial reports (CAFRs).

Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-type Activities of State and Local Governments

Accounting for Fiduciary Activities—Custodial and Trust Funds

Financial Reporting of State and Local Governments

Auditing of Government and Not-for-Profit Organizations

Budgeting and Performance Measurement

Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues

Accounting for Not-for-Profit Organizations

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters

Exam 10: Analysis of Government Financial Performance

Which of the following is a measure of the extent to which the government's business-type activities are self-supporting?

One measure of interperiod equity is whether net revenues are exceeding a government's total expenses.

A large intergovernmental revenues ratio can be viewed as a positive sign concerning a government's financial condition.

Factors common to the bond rating agencies' risk assessment are the economy and a government's debts.

"Financial statements are virtually useless in evaluating a city's financial condition." Do you agree with this statement? Why or why not?

The term that is closely related to the concept of liquidity is:

Which of the following statements about credit analysts' models is True?

A measure of whether the government lived within its means in the measurement year, or was required to use prior year resources to fund a portion of current year costs, or shifted the funding of some current year costs to future periods, is:

To provide a meaningful interpretation of a financial ratio a benchmark is needed.

Which of the following trends is most likely to be a signal of impending fiscal stress?

How do credit analysts assist decision makers in evaluating the credit worthiness of a state or local government?

Political culture, such as attitudes towards taxes, is an example in the ICMA's Financial Trend Monitoring Systems of:

Which ratio or concept describes the extent to which the government has lived within its means for the year?

The key cause of municipal financial crises is the failure of management to raise taxes quickly enough in response to adverse environmental factors.

Management practices and legislative policies are very relevant in the evaluation of a government's financial performance.

Explain the relationships among environmental factors, organizational factors, and financial factors in determining government financial condition.

Which of the following is one of the most important reasons for evaluating a government's financial performance?

Fiscal capacity is the government's ongoing ability and willingness to supply the capital and human resources needed to meet its commitments to provide services.

Which of the following terms best describes a government's ongoing ability and willingness to meet its financial obligations and service commitments as they become due?

Electronic Municipal Market Access (EMMA) is a source of all state and local government comprehensive annual financial reports (CAFRs).

Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-type Activities of State and Local Governments

Accounting for Fiduciary Activities—Custodial and Trust Funds

Financial Reporting of State and Local Governments

Auditing of Government and Not-for-Profit Organizations

Budgeting and Performance Measurement

Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues

Accounting for Not-for-Profit Organizations

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters