1. Which of the following is true regarding the government-wide Statement of Activities?

a) The government-wide Statement of Activities may reflect expenses either by function (general government, public safety, etc.) or by object or natural classification (salaries, supplies, etc.)

b) The government-wide Statement of Activities is prepared using the modified accrual basis of accounting for governmental activities and using the accrual basis of accounting for business-type activities

c) The government-wide Statement of Activities reflects all taxes as general revenues

d) Indirect program expenses may not be allocated to the other functional areas

2. Which of the following is not true regarding major fund reporting for governmental funds?

a) The General Fund is always a major fund

b) Each fund that is considered major must be reported in a separate column in the governmental funds financial statements

c) A government may designate any fund as major if it feels that reporting that fund in the basic financial statements would be useful

d) None of the above, all are true

3. What is the first step a government takes in acquiring goods or services through the General Fund?

a) Appropriation

b) Expenditure

c) Requisition order

d) Encumbrance

4. Which of the following characteristics would not define an organization as governmental?

a) The power to enact and enforce a tax levy

b) The potential for unilateral dissolution by a government with the net assets reverting to a government

c) The receipt of grant money from a state or local government for the purpose of providing services to the public

d) All of the above

5. Which of the following is not considered Required Supplementary Information (RSI)?

a) Management's Discussion and Analysis

b) Budgetary Comparison Statement

c) Notes to the financial statements

d) None of the above; all are considered RSI

Answer rating: 100% (QA)

1 c The governmentwide Statement of Activities reflects ... View the full answer