Question 1

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 2

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 3

Internal managers and credit analysts evaluate financial condition of a government in the same way.

Accepted Answer

A) True 
 B)False

Question 4

There is more emphasis on compliance with generally accepted accounting principles today than there was in 1975 around the time of New York City's default on several billions of short-term debt.

Accepted Answer

A) True 
 B)False

Question 5

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 6

A measure of the extent to which the government's business-type activities depend on subsidies from taxpayer or other general revenues rather than having the full cost of the activities' operations funded by charges to the users of the service is

Accepted Answer

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

Question 7

Financial position refers to liquidity while financial condition is a much broader concept that includes not only financial position but consideration of long-term solvency.

Accepted Answer

A) True 
 B)False

Question 8

Identify the following factors that affect financial condition as environmental factors (E)or financial factors (F).

Accepted Answer

1.E,2.E,3.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) Credit analysts focus on debt and finances,and not demographics and management 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 on debt and finances,and not demographics and management 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 13

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

Question 14

"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 15

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 16

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.

Question 17

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 18

Explain the importance of evaluating governmental financial performance.

Accepted Answer

It is important for taxpayers,creditors,

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

A recognizable signal of fiscal stress is

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

Internal managers and credit analysts evaluate financial condition of a government in the same way.

There is more emphasis on compliance with generally accepted accounting principles today than there was in 1975 around the time of New York City's default on several billions of short-term debt.

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

A measure of the extent to which the government's business-type activities depend on subsidies from taxpayer or other general revenues rather than having the full cost of the activities' operations funded by charges to the users of the service is

Financial position refers to liquidity while financial condition is a much broader concept that includes not only financial position but consideration of long-term solvency.

Identify the following factors that affect financial condition as environmental factors (E)or financial factors (F).

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

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

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

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

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

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

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

Explain the importance of evaluating governmental financial performance.

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

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

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 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

A recognizable signal of fiscal stress is

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

Internal managers and credit analysts evaluate financial condition of a government in the same way.

There is more emphasis on compliance with generally accepted accounting principles today than there was in 1975 around the time of New York City's default on several billions of short-term debt.

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

A measure of the extent to which the government's business-type activities depend on subsidies from taxpayer or other general revenues rather than having the full cost of the activities' operations funded by charges to the users of the service is

Financial position refers to liquidity while financial condition is a much broader concept that includes not only financial position but consideration of long-term solvency.

Identify the following factors that affect financial condition as environmental factors (E)or financial factors (F).

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

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

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

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

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

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

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

Explain the importance of evaluating governmental financial performance.

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

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

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 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