Question 1

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 2

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

Accepted Answer

GASB does not give a clear definition of either general-purpose or special purpose governments so judgement must be applied when making the determination. General- purpose governments commonly provide multiple government services such as public safety, transportation, health and welfare. Special-purpose governments are commonly limited to one, or perhaps a few, service programs such as government-operated hospitals, public school systems, or public colleges.

Question 3

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

The determining factor on what set of financial statements should be prepared is whether the special-purpose government is engaged solely in governmental-type activities, business-type activities or fiduciary-type activities. Special purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements.

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

Special-purpose governments are commonly limited to one, or perhaps a few, service programs such as government-operated hospitals, public school systems, or public colleges.

Question 6

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 are engaged in both governmental and business-type activities or in more than one governmental activity are required to follow the full reporting model, including both government-wide and fund-basis financial statements. All special-purpose governments must present MD&A, notes and RSI when applicable.

Question 7

The central issue in evaluating a special-purpose entity is what set of financial statements fund-basis alone or fund-basis with government-wide) are required.

Accepted Answer

The determining factor on what set of financial statements should be prepared is whether the special-purpose government is engaged solely in governmental-type activities, business-type activities or fiduciary-type activities. 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

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

Accepted Answer

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

Question 9

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

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

Question 10

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

Accepted Answer

Special-purpose governments are commonly limited to one, or perhaps a few, service programs such as government-operated hospitals, public school systems, or public colleges.

Question 11

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 12

County governments are typically classified as special purpose governments.

Accepted Answer

County governments are typically classified as General-purpose state or local governments. 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 13

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 that are engaged in both governmental and business-type activities or in more than one governmental activity are required to follow the full reporting model, including both government-wide and fund-basis financial statements. All special-purpose governments must present MD&A, notes and RSI when applicable.

Question 14

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 commonly provide multiple government services such as public safety, transportation, health and welfare. Special-purpose governments are commonly limited to one, or perhaps a few, service programs such as government-operated hospitals, public school systems, or public colleges.

Question 15

According to GASB "General-purpose governments are thought to be those that offer more than one type of basic governmental service".

Accepted Answer

General- purpose governments commonly provide multiple government services such as public safety, transportation, health and welfare.

Question 16

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

Special purpose governments engaged only in business-type activities are not required to prepare government-wide statements. These entities provide the same fund-basis statements required of proprietary funds.

Question 17

For financial reporting purposes, governmental health care entities, public school systems, other not-for-profit entities and public colleges and universities may be considered to be special-purpose entities.

Accepted Answer

Special-purpose governments are commonly limited to one, or perhaps a few, service programs such as government-operated hospitals, public school systems, fire protection district, or public colleges, park districts, tollway authorities and other not-for-profit entities such as museums.

Question 18

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

The determining factor on what set of financial statements should be prepared is whether the special-purpose government is engaged solely in governmental-type activities, business-type activities or fiduciary-type activities. Special purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements.

Question 19

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

Accepted Answer

Special-purpose governments are commonly limited to one, or perhaps a few, service programs such as government-operated hospitals, public school systems, fire protection district, or public colleges, park districts and tollway authorities.

Question 20

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.

Quiz 9: Advanced Topics for State and Local Governments

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

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

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

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

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

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.

The central issue in evaluating a special-purpose entity is what set of financial statements fund-basis alone or fund-basis with government-wide) are required.

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

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

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

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

County governments are typically classified as special purpose governments.

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.

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.

According to GASB "General-purpose governments are thought to be those that offer more than one type of basic governmental service".

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.

For financial reporting purposes, governmental health care entities, public school systems, other not-for-profit entities and public colleges and universities may be considered to be special-purpose entities.

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

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

Special purpose governments must be stand-alone local governments.