Question 1

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

Accepted Answer

Not Answer

Question 2

A measure of the adequacy of the amount of the government's total unrestricted net position or deficit at the measurement date is

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. 
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. 
D)  Total revenues/total expenses. A

Question 3

Which of the following is not a typical reason why people evaluate a government's financial condition?

Accepted Answer

A)  Prevent financial crises from developing. 
B)  Hold management accountable for the use of tax revenues. 
C)  Determine if the government can continue to offer the current level of services. 
D)  Determine whether residents will receive dividends. 
A)  Prevent financial crises from developing. 
B)  Hold management accountable for the use of tax revenues. 
C)  Determine if the government can continue to offer the current level of services. 
D)  Determine whether residents will receive dividends. D

Question 4

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 5

An effective system of monitoring financial condition may permit management to identify unfavorable financial trends in sufficient time to take preventive action to avoid financial distress.

Accepted Answer

A) True 
 B)False

Question 6

A term that describes a government's ongoing ability and willingness to raise revenues,incur debt,and meet its financial obligations as they become due is

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 7

For which of the following is a low or decreasing value of the item associated with a stronger financial condition of a governmental entity?

Accepted Answer

A)  Unfunded pension liability. 
B)  Property values. 
C)  Home ownership. 
D)  Employment rate. 
A)  Unfunded pension liability. 
B)  Property values. 
C)  Home ownership. 
D)  Employment rate.

Question 8

Because they focus on historical transactions,financial statements are more relevant in evaluating a city's current financial condition than other information in the comprehensive annual financial report.

Accepted Answer

A) True 
 B)False

Question 9

A recognizable signal of fiscal stress is

Accepted Answer

A)  Total revenues from own sources increasing as a percent of total revenues for all sources. 
B)  Increasing population. 
C)  Declining property values. 
D)  An increasing ratio of total revenues to total expenditures. 
A)  Total revenues from own sources increasing as a percent of total revenues for all sources. 
B)  Increasing population. 
C)  Declining property values. 
D)  An increasing ratio of total revenues to total expenditures.

Question 10

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 11

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 12

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

Question 13

Which of the following ratios would be considered favorable if it was low?

Accepted Answer

A)  Total revenues to population. 
B)  Debt service to total revenues. 
C)  Capital outlay from operating funds to operating expenditures. 
D)  Cash and short-term investments to current liabilities. 
A)  Total revenues to population. 
B)  Debt service to total revenues. 
C)  Capital outlay from operating funds to operating expenditures. 
D)  Cash and short-term investments to current liabilities.

Question 14

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 15

Discuss how despite significant improvements in the quality of governmental financial reporting over the years there are still serious,high profile public sector financial crises.How does the quality of financial reporting affect the ability to evaluate financial condition?

Accepted Answer

Despite significant improvements in the

Question 16

"Benchmarking is a simple method for comparing one government to another." Do you agree or disagree with this statement? Explain.

Accepted Answer

The answer of "Benchmarking is a simple method for comparing...

Question 17

A financial capability ratio that measures the degree to which the annual budget is loaded with disbursements to pay off long-term debt is:

Accepted Answer

A)  Revenue dispersion. 
B)  Debt service load. 
C)  Financing margin-bonded debt per capita. 
D)  Financing margin-legal debt limit. 
A)  Revenue dispersion. 
B)  Debt service load. 
C)  Financing margin-bonded debt per capita. 
D)  Financing margin-legal debt limit.

Question 18

Cash solvency is the government's long-run ability to pay all the costs of doing business.

Accepted Answer

A) True 
 B)False

Question 19

Budget solvency is the government's ability to provide services at the level and quality that are required for the health,safety,and welfare of the community and that its citizens desire.

Accepted Answer

A) True 
 B)False

Question 20

Service-level solvency is the government's ability to meet its current budget by expending no more resources than were appropriated.

Accepted Answer

A) True 
 B)False

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

A measure of the adequacy of the amount of the government's total unrestricted net position or deficit at the measurement date is

Which of the following is not a typical reason why people evaluate a government's financial condition?

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

An effective system of monitoring financial condition may permit management to identify unfavorable financial trends in sufficient time to take preventive action to avoid financial distress.

A term that describes a government's ongoing ability and willingness to raise revenues,incur debt,and meet its financial obligations as they become due is

For which of the following is a low or decreasing value of the item associated with a stronger financial condition of a governmental entity?

Because they focus on historical transactions,financial statements are more relevant in evaluating a city's current financial condition than other information in the comprehensive annual financial report.

A recognizable signal of fiscal stress is

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

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.

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

Which of the following ratios would be considered favorable if it was low?

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

Discuss how despite significant improvements in the quality of governmental financial reporting over the years there are still serious,high profile public sector financial crises.How does the quality of financial reporting affect the ability to evaluate financial condition?

"Benchmarking is a simple method for comparing one government to another." Do you agree or disagree with this statement? Explain.

A financial capability ratio that measures the degree to which the annual budget is loaded with disbursements to pay off long-term debt is:

Cash solvency is the government's long-run ability to pay all the costs of doing business.

Budget solvency is the government's ability to provide services at the level and quality that are required for the health,safety,and welfare of the community and that its citizens desire.

Service-level solvency is the government's ability to meet its current budget by expending no more resources than were appropriated.

Introduction to Accounting and Financial Reporting for Governmental 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-Agency and Trust Funds

Financial Reporting of State and Local Governments

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters

Exam 10: Analysis of Governmental Financial Performance

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

A measure of the adequacy of the amount of the government's total unrestricted net position or deficit at the measurement date is

Which of the following is not a typical reason why people evaluate a government's financial condition?

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

An effective system of monitoring financial condition may permit management to identify unfavorable financial trends in sufficient time to take preventive action to avoid financial distress.

A term that describes a government's ongoing ability and willingness to raise revenues,incur debt,and meet its financial obligations as they become due is

For which of the following is a low or decreasing value of the item associated with a stronger financial condition of a governmental entity?

Because they focus on historical transactions,financial statements are more relevant in evaluating a city's current financial condition than other information in the comprehensive annual financial report.

A recognizable signal of fiscal stress is

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

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.

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

Which of the following ratios would be considered favorable if it was low?

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

Discuss how despite significant improvements in the quality of governmental financial reporting over the years there are still serious,high profile public sector financial crises.How does the quality of financial reporting affect the ability to evaluate financial condition?

"Benchmarking is a simple method for comparing one government to another." Do you agree or disagree with this statement? Explain.

A financial capability ratio that measures the degree to which the annual budget is loaded with disbursements to pay off long-term debt is:

Cash solvency is the government's long-run ability to pay all the costs of doing business.

Budget solvency is the government's ability to provide services at the level and quality that are required for the health,safety,and welfare of the community and that its citizens desire.

Service-level solvency is the government's ability to meet its current budget by expending no more resources than were appropriated.

Introduction to Accounting and Financial Reporting for Governmental 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-Agency and Trust Funds

Financial Reporting of State and Local Governments

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters