Question 1

GASB provides which methods for including component unit financial information with that of the primary government?
A) Discrete Presentation
B) Blending
C) A and B
D) None of the above

Accepted Answer

GASB standards provide two methods for including component unit financial information with that of the primary government; blending and discrete presentation.

Question 2

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

Accepted Answer

The CAFR has three major sections: introductory, financial and statistical.

Question 3

A Statement of Cash Flows is required for which type of fund?
A) Proprietary
B) Governmental
C) Fiduciary
D) None of the above

Accepted Answer

The statement of cash flows is only required for proprietary funds.

Question 4

Which of the following is true regarding fiduciary fund statements?
A) Fiduciary fund statements include the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position.
B) Fiduciary fund statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.
C) Both of the above.
D) Neither of the above.

Accepted Answer

Fiduciary fund statements include the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position and are prepared using the economic resource measurement focus and accrual accounting.

Question 5

Which Statement is presented using the accrual basis of accounting?
A) Governmental Fund Balance Sheet
B) Government-Wide Statement of Activities
C) Statement of Revenues, Expenditure and changes in Fund Balances
D) A and C

Accepted Answer

The government-wide statements use the accrual basis of accounting. Fund basis statements use the modified accrual basis of accounting.

Question 6

Which of the following is true regarding Government-wide financial statements?
A) Prior year data must be presented.
B) A Statement of Cash Flows is not required for Government-wide statements.
C) Depreciation may only be reported as a charge in total to the general government.
D) Fiduciary activities are only reported if they qualify as a major fund.

Accepted Answer

A Statement of Cash Flows is not required for Government-wide statements. Prior year data is optional, depreciation is allocated according to function and fiduciary activities are not included in the government-wide statements.

Question 7

Which of the following funds requires a Budgetary Comparison Schedule?
A) Enterprise Funds
B) Internal Service Funds
C) General Fund
D) Investment Trust Funds

Accepted Answer

A budgetary comparison schedule is required for the General Fund and each major special revenue fund that has a legally adopted budget.

Question 8

The statistical section typically presents ____ years of information in each table or schedule.
A) 3
B) 5
C) 10
D) 12

Accepted Answer

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

Question 9

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

Accepted Answer

Proprietary funds must prepare the following: Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position and Statement of Cash Flows.

Question 10

GASB requires which of the following if applicable to be included in the Notes to
Financial Statements?
A) Outstanding encumbrances
B) The definition of cash and cash equivalents used in the statement of cash flows for proprietary funds.
C) Interfund receivables and payables.
D) All of the above.

Accepted Answer

Any event that is significant to understanding and interpreting the financial statements should be described in the notes. Outstanding encumbrances, the definition of cash and cash equivalents used in the statement of cash flows for proprietary funds, interfund receivables and payables would all be required.

Question 11

Which of the following is true regarding fiduciary funds?
A) Fiduciary funds are reported in the fiduciary fund financial statements but not in the government-wide financial statements.
B) Agency funds would be reported in both the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position.
C) Both of the above.
D) Neither of the above.

Accepted Answer

Fiduciary funds are not included in the government-wide statement; they are included with the fund basis financial statements. Agency funds only prepare the Statement of Fiduciary Net Position. They do not prepare a statement of changes in Fiduciary Net Position because agency funds do not have revenues or expenses.

Question 12

Which of the following is true regarding the governmental fund financial statements?
A) The governmental fund financial statements include the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances.
B) The governmental fund financial statements are prepared using the current financial resources measurement focus and the modified accrual basis of accounting.
C) Both of the above.
D) Neither of the above.

Accepted Answer

The governmental fund financial statements include the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances which are prepared using the current financial resources measurement focus and the modified accrual basis of accounting.

Question 13

In addition to a Statement of Net Position, what statements are required in the government-wide Financial Statements?
A) Statement of Activities.
B) Statement of Cash Flows.
C) Both of the above.
D) Neither of the above.

Accepted Answer

Government-wide financial statements include the Government-wide Statement of Net Position and the Government-wide Statement of Activities. The Statement of Cash Flows is not required.

Question 14

Which of the following is true regarding the government-wide financial statements?
A) The government-wide financial statements include the Statement of Net Position and the Statement of Activities.
B) The government-wide financial statements are prepared using the current financial resources measurement focus and the modified accrual basis of accounting.
C) Both of the above.
D) Neither of the above.

Accepted Answer

Government-wide financial statements include the Government-wide Statement of Net Position and the Government-wide Statement of Activities. The Statement of Cash Flows is not required.

Question 15

Which of the following is true regarding the proprietary fund financial statements?
A) The proprietary fund financial statements include the Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows.
B) The proprietary fund financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting.
C) Both of the above.
D) Neither of the above.

Accepted Answer

The proprietary fund statements include the Statement of Net position, Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Cash Flows which are prepared using the economic resources measurement focus and the accrual basis of accounting.

Question 16

Which part of the financial section of the CAFR is considered "Required supplementary Information?"
A) Auditor's Report
B) Management's Discussion and Analysis
C) Government-Wide Financial Statements
D) Fund Financial Statements

Accepted Answer

RSI appears in two parts of the financial section; MD&A precedes the financial statements and other RSI schedules follow the notes to the financial statements. The auditor's report and financial statements are not RSI.

Question 17

Which of the following Sections of the CAFR is audited?
A) Financial section
B) Statistical section
C) Management Discussion and Analysis section
D) Financial and statistical sections

Accepted Answer

The financial section is audited. MD&A and the statistical section are not audited.

Question 18

Where in the CAFR would one find the long-term liability for revenue bonds paid from the revenues of an enterprise fund?
A) The proprietary funds Statement of Net Position only.
B) The government-wide Statement of Net Position and the proprietary funds Statement of Net Position.
C) The government-wide Statement of Net Position and the RSI Schedule of Bonds Payable.
D) The government-wide Statement of Net Position only.

Accepted Answer

Long-term liability for revenue bonds would be found in the government wide Statement of Net Position and the proprietary funds Statement of Net Position.

Question 19

Which of the following is true regarding the proprietary funds statements?
A) Major enterprise and internal service funds are reported in separate columns; a column is presented for all non-major enterprise and internal service funds combined), and a total column is presented.
B) Financial statements include a Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows.
C) Both of the above.
D) Neither of the above.

Accepted Answer

Internal services funds do not follow the procedures described for major funds. Governments with more than one internal service fund combine the funds into one column for the Statement of Net Position. Detailed financial statements for each internal service fund are included in the other supplementary information. Proprietary fund financial statements include a Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows.

Question 20

A reconciliation from Enterprise funds statements to government-wide statements is not necessary because …
A) They both use the same measurement focus and basis of accounting economic resources, accrual
B) They both use the same measurement focus and basis of accounting current financial resources, modified accrual
C) They use a different measurement focus and basis of accounting.
D) Enterprise funds are not included in the government-wide statements

Accepted Answer

Enterprise funds use the economic resources measurement focus and the accrual basis of accounting which is the same as the government-wide statements. required.

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

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

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

A Statement of Cash Flows is required for which type of fund?

Which of the following is true regarding fiduciary fund statements?

Which Statement is presented using the accrual basis of accounting?

Which of the following is true regarding Government-wide financial statements?

Which of the following funds requires a Budgetary Comparison Schedule?

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

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

GASB requires which of the following if applicable to be included in the Notes to Financial Statements?

Which of the following is true regarding fiduciary funds?

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

In addition to a Statement of Net Position, what statements are required in the government-wide Financial Statements?

Which of the following is true regarding the government-wide financial statements?

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

Which part of the financial section of the CAFR is considered "Required supplementary Information?"

Which of the following Sections of the CAFR is audited?

Where in the CAFR would one find the long-term liability for revenue bonds paid from the revenues of an enterprise fund?

Which of the following is true regarding the proprietary funds statements?

A reconciliation from Enterprise funds statements to government-wide statements is not necessary because …