Question 1

What are the three major sections of the Comprehensive Annual Financial Report?

Accepted Answer

A)  Introductory Section, Financial Section, Budgetary Comparison 
B)  Introductory Section, Financial Section, Management Discussion and Analysis. 
C)  Introductory Section, Financial Section, Statistical Section 
D)  Introductory Section, Financial Section, Reporting Infrastructure

Question 2

The government-wide financial statements are prepared using the current resources measurement focus and accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 3

With respect to the preparation of fund basis financial statements, governmental funds other than the General fund are considered to be major when which of the following conditions exist?

Accepted Answer

A)  With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of the individual governmental fund under consideration constitutes 25% of the total for the governmental fund category. 
B)  With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of individual governmental or enterprise fund under consideration are 15% of the total of the governmental funds and enterprise categories, combined. 
C)  Both A and B are required for a governmental fund to be a major fund. 
D)  Neither A nor B are correct.

Question 4

List the fund financial statements required by GASB for proprietary type funds.

Accepted Answer

The answer of List the fund financial statements required by...

Question 5

Fiduciary funds are not included in the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following funds require a Statement of Cash Flows?

Accepted Answer

A)  Governmental funds 
B)  Proprietary funds 
C)  Fiduciary Funds 
D)  Governmental and Fiduciary Funds

Question 7

The General Fund is not always considered to be a major fund when preparing fund basis financial statements.

Accepted Answer

A) True 
 B)False

Question 8

The statistical section typically presents ____ years of information in each table or schedule.

Accepted Answer

A)  3 
B)  5 
C)  10 
D)  12

Question 9

Funds other than the General Fund must be considered a major fund when

Accepted Answer

A)  Total assets, liabilities, revenues, or expenditures/expenses of that fund constitute 10 percent of either the governmental or enterprise category. 
B)  Total assets, liabilities, revenues, or expenditures/expenses of that fund are 5 percent of the total of the governmental and enterprise category. 
C)  Conditions of either A or B exist. 
D)  Conditions of both A and B exist.

Question 10

Government-wide statements are to be prepared using the current financial resources measurement focus and modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true regarding the reporting of major funds in the governmental funds financial statements?

Accepted Answer

A)  The General Fund is always considered a major fund. 
B)  A fund is considered major if its revenues, expenditures, assets, or liabilities exceed 10% of the total governmental fund categories and if the same element revenues, expenditures, assets, or liabilities) exceeds 5% of the governmental and enterprise funds combined. 
C)  Both A and B are true. 
D)  Neither A nor B is true.

Question 12

Which of the following is true regarding the proprietary fund financial statements?

Accepted Answer

A)  Statements include the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. 
B)  Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements. 
C)  The Statement of Net Position reflects equity as contributed equity and retained earnings. 
D)  The Statement of Cash Flows may be prepared using either the direct or indirect methods.

Question 13

GASB provides which methods for including component unit financial information with that of the primary government?

Accepted Answer

A)  Discrete Presentation 
B)  Blending 
C)  A and B 
D)  None of the above

Question 14

In addition to a Statement of Net Position, Proprietary Fund level financial statements include which of the following?

Accepted Answer

A)  Statement of Revenues, Expenses, and Changes in Fund Net Position. 
B)  Statement of Cash Flows. 
C)  Both of the above. 
D)  Neither of the above.

Question 15

A complete CAFR includes combining financial statements to reflect nonmajor funds.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following funds requires a Budgetary Comparison Schedule?

Accepted Answer

A)  Enterprise Funds 
B)  Internal Service Funds 
C)  General Fund 
D)  Investment Trust Funds

Question 17

Only governmental fund statements include separate columns for discretely presented component units.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true regarding the reporting of Budget-Actual Comparisons?

Accepted Answer

A) Major special revenue funds that have a legally adopted annual budget. 
B)  A Budget-Actual Comparison Statement may be prepared in lieu of the Schedule. 
C)  Both A and B are true. 
D)  Neither A nor B is true.

Question 19

Under GASB rules for the financial reporting entity:

Accepted Answer

A)  Component units must be reported in columns discrete presentation separate from the funds of a primary government. 
B)  Counties are component units of the State Government. 
C)  Blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements. 
D)  Component units are included if the primary government is financially accountable for their operations.

Question 20

Which of the following is not true regarding the Statement of Cash Flows for
Proprietary funds?

Accepted Answer

A)  Four categories of cash flows are used. 
B)  Interest and dividends received are recorded as investing activities. 
C)  The direct method is required for reporting cash flows from operations. 
D)  All of the above are true statements.

Exam 2: Overview of Financial Reporting for State and Local Governments

What are the three major sections of the Comprehensive Annual Financial Report?

The government-wide financial statements are prepared using the current resources measurement focus and accrual basis of accounting.

With respect to the preparation of fund basis financial statements, governmental funds other than the General fund are considered to be major when which of the following conditions exist?

List the fund financial statements required by GASB for proprietary type funds.

Fiduciary funds are not included in the government-wide statements.

Which of the following funds require a Statement of Cash Flows?

The General Fund is not always considered to be a major fund when preparing fund basis financial statements.

The statistical section typically presents ____ years of information in each table or schedule.

Funds other than the General Fund must be considered a major fund when

Government-wide statements are to be prepared using the current financial resources measurement focus and modified accrual basis of accounting.

Which of the following is true regarding the reporting of major funds in the governmental funds financial statements?

Which of the following is true regarding the proprietary fund financial statements?

GASB provides which methods for including component unit financial information with that of the primary government?

In addition to a Statement of Net Position, Proprietary Fund level financial statements include which of the following?

A complete CAFR includes combining financial statements to reflect nonmajor funds.

Which of the following funds requires a Budgetary Comparison Schedule?

Only governmental fund statements include separate columns for discretely presented component units.

Which of the following is true regarding the reporting of Budget-Actual Comparisons?

Under GASB rules for the financial reporting entity:

Which of the following is not true regarding the Statement of Cash Flows for Proprietary funds?