Multiple Choice. Choose the best answer.
1. Some governments have begun to provide highly condensed financial information, budget summaries, and narrative descriptions, in addition to their traditional CAFR. This type of report is generally referred to as a (an):
a. Popular report.
b. MD&A.
c. Operating budget.
d. General purpose financial report.
2. The City of Gourman’s employee pension fund would be included in which of the following financial statements?
a. Government-wide statement of net assets.
b. Statement of fiduciary net assets.
Statement of cash flows.
d. Both a and b.
3. 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.
4. Which of the following criteria regarding the relationship between a legally separate, tax-exempt organization and a primary government would lead to the separate organization being reported as a component unit?
a. The primary government appoints the voting majority of the separate organization’s board of directors.
b. The primary government is entitled to or has the ability to otherwise access a majority of the economic resources received or held by the separate organization.
c. The economic resources received or held by an individual organization that the specific primary government is entitled to or has the ability to otherwise access are significant to that primary government.
d. All of the above criteria must be met.
5. Which of the following is not part of the minimum requirements for general purpose external financial reporting?
a. Combining financial statement for nonmajor funds.
b. Basic financial statements.
c. Management’s discussion and analysis (MD&A).
d. Required supplementary information, other than MD&A.
6. A comprehensive annual financial report (CAFR) generally would include all of the following sections except:
a. Financial section.
b. Audit section.
c. Statistical section.
d. Introductory section.
7. In a governmental funds balance sheet, prepared in conformity with GAAE a separate column is provided for each:
a. Fund type.
b. Major fund.
c. Government.
d. Significant fund.
8. Which of the following might be included as a reconciling item in reconciling governmental fund financial statements to the government-wide financial statements?
a. Bond issuances are reported as an other financing source in a governmental fund but as a long-term liability in the government-wide financial statements.
b. Acquisition of capital assets is reported as an expenditure in the governmental fund financial statements but as capital assets in the government-wide financial statements.
c. Some expenses reported in the government-wide financial statements are not reported as expenditures in the governmental hind financial statements.
d. All of the above.
9. Which of the following is not one of the categories of the statistical section recommended by the GASB?
a. Demographic and economic information.
b. Operating information.
c. Pro forma financial information.
d. Debt capacity information.
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.