Question 1

Explain the importance of evaluating governmental financial performance.

Accepted Answer

It is important for taxpayers,creditors,

Question 2

Which of the following ratios would be most helpful in assessing the operating position of a governmental entity?

Accepted Answer

A)  Net tax-supported long-term debt/population. 
B)  Own source revenues/total revenues. 
C)  Debt service expenditures/total expenditures. 
D)  General fund balance/operating revenues. 
A)  Net tax-supported long-term debt/population. 
B)  Own source revenues/total revenues. 
C)  Debt service expenditures/total expenditures. 
D)  General fund balance/operating revenues.

Question 3

After financial ratios are calculated,the results should be compared to any of the following except:

Accepted Answer

A)  The same indicator from prior years. 
B)  Budgeted information for the government for the upcoming year. 
C)  Comparable government ratios calculated from the Government Finance Officers Association's Financial Indicators Database. 
D)  Credit analyst measures or other red flag indicators. 
A)  The same indicator from prior years. 
B)  Budgeted information for the government for the upcoming year. 
C)  Comparable government ratios calculated from the Government Finance Officers Association's Financial Indicators Database. 
D)  Credit analyst measures or other red flag indicators.

Question 4

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

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 5

Political culture,one of the environmental factors affecting financial condition,includes such factors as form of government and the entity's economic,political,and social history.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following financial concepts has been defined by the GASB as "the probability that a government will meet both its financial obligations to creditors,consumers,employees,taxpayers,suppliers,constituents,and others as they become due and its service obligation to constituents,both currently and in the future"?

Accepted Answer

A)  Financial condition. 
B)  Financial position. 
C)  Financial leverage. 
D)  Liquidity. 
A)  Financial condition. 
B)  Financial position. 
C)  Financial leverage. 
D)  Liquidity.

Question 7

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

Accepted Answer

Disagree.Benchmarking is not simple,but

Question 8

Environmental factors facing a government have little impact on a city's fiscal policy.

Accepted Answer

A) True 
 B)False

Question 9

Match the following financial ratios that are based on comprehensive annual financial report (CAFR)information with the explanation for that ratio.Answers can only be used once.

Accepted Answer

1.J,2.E,3.

Question 10

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 11

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 12

Distinguish and describe key financial performance concepts,such as financial position,financial condition,and economic condition.

Accepted Answer

Financial position represents a focus on

Question 13

Population demographics have an impact on financial factors such as revenue per capita.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

How do the objectives of evaluating financial condition differ between internal managers and credit analysts? How are their objectives similar?

Accepted Answer

Internal managers are primarily concerne

Question 16

An investor could find all but one of the following pieces of information through the Electronic Municipal Market Access (EMMA). Which of the following is not available on EMMA?

Accepted Answer

A)  Credit rating for the debt issuance. 
B)  Comprehensive Annual Financial Report. 
C)  Interest rate and size of the debt issuance. 
D)  Credit report on the government issuing the debt. 
A)  Credit rating for the debt issuance. 
B)  Comprehensive Annual Financial Report. 
C)  Interest rate and size of the debt issuance. 
D)  Credit report on the government issuing the debt.

Question 17

All of the following are appropriate benchmarks for a state or local government to use as a basis for comparing performance except

Accepted Answer

A)  A government's own operating results and financial position from prior years. 
B)  International City/County Management Association's Financial Trend Monitoring System results for governments of similar types and size. 
C)  Federal agencies' financial information for a comparable time period. 
D)  Socioeconomic and demographic trends of governments of similar types and size available from U.S. Census Bureau. 
A)  A government's own operating results and financial position from prior years. 
B)  International City/County Management Association's Financial Trend Monitoring System results for governments of similar types and size. 
C)  Federal agencies' financial information for a comparable time period. 
D)  Socioeconomic and demographic trends of governments of similar types and size available from U.S. Census Bureau.

Question 18

The following are key terms in Chapter 10 that relate to analysis of governmental financial performance:
A.Benchmarking
B.Budgetary solvency
C.Cash solvency
D.Economic condition
E.Financial condition
F.Financial position
G.Fiscal capacity
H.Long-run solvency
I.Service capacity
J.Service-level solvency
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.

Accepted Answer

1.E,2.D,3.

Question 19

The three major rating agencies for governments have each developed quantitative tools for assessing credit risk. Which of the following general factors is used by all three rating agencies in assessing credit risk?

Accepted Answer

A)  Economy. 
B)  Budgetary flexibility. 
C)  Revenue dispersion. 
D)  Geographic location. 
A)  Economy. 
B)  Budgetary flexibility. 
C)  Revenue dispersion. 
D)  Geographic location.

Explain the importance of evaluating governmental financial performance.

Which of the following ratios would be most helpful in assessing the operating position of a governmental entity?

After financial ratios are calculated,the results should be compared to any of the following except:

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

Political culture,one of the environmental factors affecting financial condition,includes such factors as form of government and the entity's economic,political,and social history.

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

Environmental factors facing a government have little impact on a city's fiscal policy.

Match the following financial ratios that are based on comprehensive annual financial report (CAFR)information with the explanation for that ratio.Answers can only be used once.

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

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?

Distinguish and describe key financial performance concepts,such as financial position,financial condition,and economic condition.

Population demographics have an impact on financial factors such as revenue per capita.

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

How do the objectives of evaluating financial condition differ between internal managers and credit analysts? How are their objectives similar?

An investor could find all but one of the following pieces of information through the Electronic Municipal Market Access (EMMA). Which of the following is not available on EMMA?

All of the following are appropriate benchmarks for a state or local government to use as a basis for comparing performance except

The three major rating agencies for governments have each developed quantitative tools for assessing credit risk. Which of the following general factors is used by all three rating agencies in assessing credit risk?

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 Activitiesillustrative 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 Activitiesagency 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 Organizationsregulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government Glossary

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Exam 10: Analysis of Governmental Financial Performance

Explain the importance of evaluating governmental financial performance.

Which of the following ratios would be most helpful in assessing the operating position of a governmental entity?

After financial ratios are calculated,the results should be compared to any of the following except:

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

Political culture,one of the environmental factors affecting financial condition,includes such factors as form of government and the entity's economic,political,and social history.

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

Environmental factors facing a government have little impact on a city's fiscal policy.

Match the following financial ratios that are based on comprehensive annual financial report (CAFR)information with the explanation for that ratio.Answers can only be used once.

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

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?

Distinguish and describe key financial performance concepts,such as financial position,financial condition,and economic condition.

Population demographics have an impact on financial factors such as revenue per capita.

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

How do the objectives of evaluating financial condition differ between internal managers and credit analysts? How are their objectives similar?

An investor could find all but one of the following pieces of information through the Electronic Municipal Market Access (EMMA). Which of the following is not available on EMMA?

All of the following are appropriate benchmarks for a state or local government to use as a basis for comparing performance except

The three major rating agencies for governments have each developed quantitative tools for assessing credit risk. Which of the following general factors is used by all three rating agencies in assessing credit risk?

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 Activitiesillustrative 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 Activitiesagency 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 Organizationsregulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government Glossary

Filters