Multiple Choice Questions
Identify the best answer for each of the following:
1. The introductory section of the CAFR would potentially include all of the following information except
a. A listing of key officials.
b. A letter of transmittal.
c. The table of contents.
d. Management’s Discussion and Analysis.

2. A combining statement would be required to be included in a CAFR for which of the following scenarios?
a. There are multiple major Enterprise Funds.
b. There are multiple Internal Service Funds.
c. There are multiple major governmental funds.
d. There are multiple major Enterprise Funds and an Internal Service Fund.

3. Which of the following statements regarding the reporting of individual fund financial statements is true?
a. Detailed budgetary information for the General Fund may be included as an individual fund financial statement even though a budgetary statement is also included in the Basic Financial Statements.
b. A government may decide to include individual fund financial statements for one fund but not other individual funds of the same fund type.
c. Budgetary comparisons for an Enterprise Fund may be reported as an individual fund financial schedule.
d. All of the above statements are true.

Questions 4, 5, 6, 7, and 8 are based on the following scenario:
Chestnut County has the following:
One General Fund
Three major Special Revenue Funds
One nonmajor Special Revenue Fund
Two major Capital Projects Funds
Two major Enterprise Funds
One nonmajor Enterprise Fund
Two Internal Service Funds
One Pension Trust Fund
One Agency Fund
One blended component unit
Two discretely presented component units
Further assume that the blended component unit itself has a General Fund and a Capital Projects Fund, each of which meets the criteria for a major fund.
4. How many columns at a minimum would be reported on the face of Chestnut County’s government-wide Statement of Net Position?
a. 2
b. 3
c. 4
d. 5

5. How many major Special Revenue Funds would the County report in the governmental funds financial statements?
a. 1
b. 3
c. 4
d. 5

6. Assume Chestnut County prepares a CAFR. Combining financial statements would be required for
a. Internal Service Funds only.
b. Special Revenue Funds only.
c. all governmental fund types.
d. Enterprise Funds only.

7. How many major fund columns will be reported in the governmental funds financial statements?
a. 4
b. 6
c. 7
d. 8

8. Which of the following reporting options for Chestnut County’s discretely presented component units would not be allowed by GAAP?
a. Assuming the discretely presented component units are governmental in nature, each would be subject to major fund reporting in the fund financial statements.
b. The discretely presented component units would be reported in either one or two separate columns on the Statement of Net Position.
c. Discretely presented component units are never reported as part of the primary government.
d. A total primary government column is presented before the presentation for the discrete component units.

9. Potential component units that are ultimately excluded from the reporting entity but require at least minimal disclosure in the financial statements could include all of the following except
a. Related organizations.
b. Jointly governed organizations.
c. Joint ventures.
d. All of the above require at least minimal note disclosures.

10. The CAFR must include all of the following except
a. A compliance section.
b. A financial section.
c. A statistical section.
d. An introductory section.

  • CreatedOctober 25, 2014
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