Multiple Choice. Choose the best answer.

1. The members of the Museum Board of the City of Springfield are appointed by the City of Springfield City Council, which has agreed to finance any operating deficits of the museum. Under these conditions:

a. The museum is a primary government.

b. The city and the museum together are a financial reporting entity.

c. The museum is a special district.

d. The museum is a component unit of the city.

2. Interim government financial reports:

a. Are not necessary because administrators and managers of the government are already familiar with the events and activities of the government on a day to day basis.

b. Should be prepared and distributed publicly at regular intervals.

c. Are important for budgetary and cash management purposes.

d. Are not necessary as long as the government prepares a comprehensive annual financial report (CAFR).

3. The comprehensive annual financial report (CAFR) of a governmental reporting entity should contain a statement of cash flows for:

4. Which of the following terms would be used when describing a primary government?

a. Fiscally independent.

b. Legally separate organization.

c. Separately elected governing body.

d. All of the above.

5. The city council of Lake Jefferson passed a resolution to establish a small botanical garden in the city park. The council decided to put aside funds in the amount of $22,000 to build and establish the botanical garden. At the end of the fiscal year, $3,000 of the funds had been spent. How should the remainder of the funds be reported?

a. Committed fund balance.

b. Assigned fund balance.

c. Restricted fund balance.

d. Nonspendable fund balance.

6. Which of the following require a statement of changes in net position?

a. Fiduciary funds.

b. Government-wide financial statements.

c. All governmental funds.

d. Both proprietary funds and fiduciary funds.

7. What are intra-entity transactions?

a. Nonexchange transactions between a primary government and its component units.

b. Exchange or nonexchange transactions between a primary government and its component units.

c. Exchange or nonexchange transactions between a primary government and any discretely presented component units.

d. Exchange transactions between a primary government and any blended component units.

8. Which of the following would not be included as a reconciling item in reconciling the governmental fund statement of revenues, expenditures, and changes in fund balance to the government-wide statement of activities?

a. Bond issuances reported as an other financing source in a governmental fund.

b. Interest accrued on long-term notes payable.

c. Acquisition of capital assets reported as an expenditure in the governmental fund financial statements.

d. Interest accrued on Property Taxes Receivable—Delinquent.

9. A positive unassigned fund balance can be found in which of the following funds?

a. Special revenue fund.

b. Debt service fund.

c. General fund.

d. All of the above.

10. Which of the following is generally considered an other comprehensive basis of accounting (OCBOA) acceptable for governments?

a. Cash.

b. Budgetary.

c. Accrual.

d. Reserve cash.

Transcribed Image Text:

Governmental Funds Proprietary Funds а. Yes No b. Yes Yes C. No Yes d. No No Governmental Funds Proprietary Funds а. Yes No b. Yes Yes C. No Yes d. No No

Answer rating: 100% (QA)

1 Statement The museum board members of City Springfield are appointed by the city council of the City Springfield However the City Springfield council has agreed to finance the museums operating defi... View the full answer