Question 1

Special purpose governments must be stand-alone local governments.

Accepted Answer

Special-purpose governments may be stand-alone local governments or may be component units of other governments that are issuing separate reports.

Question 2

City and county governments are not typically classified as special purpose governments.

Accepted Answer

City and county governments are general-purpose governments, providing a wide range of services, unlike special-purpose governments which focus on specific functions.

Question 3

According to GASB Statement 34,governmental activities are generally financed through taxes,intergovernmental revenues and other nonexchange revenues.

Accepted Answer

GASB Statement 34 outlines that governmental activities are typically financed through taxes, intergovernmental revenues, and other nonexchange revenues such as grants and donations.

Question 4

A special-purpose government engaged in business-type activities financed in whole or part by fees charged to external parties are usually reported in fiduciary funds.

Accepted Answer

A special-purpose government engaged in business-type activities financed in whole or part by fees charged to external parties are usually reported in enterprise funds, not fiduciary funds. Fiduciary funds are used to account for funds held in trust by the government for others, such as pension funds or agency funds.

Question 5

General-purpose governments are those that offer more than one type of basic governmental service,while special-purpose entities generally provide a limited,or single,set of programs or services.

Accepted Answer

General-purpose governments offer a range of basic governmental services, such as police, fire, education, and health, while special-purpose entities, such as water districts or transit authorities, typically provide a single or limited set of services.

Question 6

Special-purpose governments generally provide a limited set of services or programs.

Accepted Answer

Special-purpose governments are created to provide specific services or programs such as public transportation, education, or water and sanitation. They are not designed to provide a broad range of services like general-purpose governments.

Question 7

Special-purpose governments that are engaged in both governmental and business-type activities are permitted to combine the fund and government-wide financial statements.

Accepted Answer

Special purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements.

Question 8

The implementation guide for GASB Statement 34 provides a distinction by indicating that "general purpose governments are thought to be those that offer more than one type of basic governmental service.

Accepted Answer

The implementation guide for GASB Statement 34 does make this distinction.

Question 9

A fire protection district is an example of special-purpose local government.

Accepted Answer

A fire protection district is a type of special-purpose local government that is responsible for providing fire protection services within a designated geographic area. Other examples of special-purpose local governments include school districts, water districts, and library districts.

Question 10

Financial reporting for a special-purpose local government depends on whether that government is engaged in governmental-type,business-type or fiduciary-type activities.

Accepted Answer

Financial reporting for a special-purpose local government depends on the type of activities it is engaged in, which can be governmental-type, business-type, or fiduciary-type.

Question 11

Special-purpose governments generally provide a single or limited set of governmental services or programs.

Accepted Answer

Special-purpose governments are established to provide a specific set of governmental services or programs, such as school districts, fire districts, or transit authorities. They do not provide a broad range of governmental services like general-purpose governments such as cities or counties. Therefore, the statement is true.

Question 12

Special-purpose governmental entities that are engaged in a single governmental-type activity only are required to prepare only the statements required for governmental fund basis financial statements.

Accepted Answer

Special-purpose governmental entities engaged in a single governmental-type activity must prepare both the governmental fund basis financial statements and the government-wide financial statements.

Question 13

Special-purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements

Accepted Answer

According to GASB Statement No. 34, special-purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements. This is because their financial activity is relatively simple and it is often impractical to report on them separately.

Question 14

Special-purpose governments that are engaged in more than one governmental activity are required to use the full reporting model including MD&A,government-wide and fund-basis statements,notes to the financial statements and RSI.

Accepted Answer

Special-purpose governments that engage in multiple governmental activities are required to follow the full reporting model, which includes MD&A, government-wide and fund-basis statements, notes to the financial statements, and RSI. This is outlined in GASB Statement No. 34, which aims to improve the transparency and comparability of financial reporting for these types of governments.

Question 15

Special-purpose governments that are engaged in both governmental and business-type activities are required to use the full reporting model including MD&A,government-wide and fund-basis statements,notes to the financial statements and RSI.

Accepted Answer

Special-purpose governments engaged in both governmental and business-type activities are required to use the full reporting model, as per GASB Statement No. 34. This includes MD&A, government-wide and fund-basis statements, notes to the financial statements, and RSI.

Question 16

According to GASB Statement No.34,"General-purpose governments are thought to be those that offer more than one type of basic governmental service".

Accepted Answer

According to GASB Statement No.34, general-purpose governments are those that offer more than one type of basic governmental service, such as police and fire protection, public roads, and sanitation services.

Question 17

Special-purpose governmental entities that are engaged in a single business activity are not required to prepare government-wide financial statements,but may issue only enterprise fund statements.

Accepted Answer

This statement is true. According to GASB standards, special-purpose governmental entities that are engaged in a single business activity may issue only enterprise fund statements, and are not required to prepare government-wide financial statements.

Question 18

A County could be either a general-purpose or a special purpose government.

Accepted Answer

General-purpose governments include states, counties, cities, towns and villages. While it is true that one government, such as a township, may be either a general-purpose or a special-purpose government, counties typically provide multiple services and should be accounted for as a general-purpose government.

Question 19

GASB standards permit exercise of judgment when determining whether a government is general-purpose or special-purpose.

Accepted Answer

GASB standards do permit exercise of judgment when determining whether a government is a general-purpose or special-purpose entity, based on the nature and scope of its services and functions. This determination affects the application of certain reporting requirements and financial statement formats.

Question 20

Special-purpose governments that are engaged in more than one governmental activity are permitted to combine the fund and government-wide financial statements.

Accepted Answer