Identify the best answer for each of the following:

1. Which of the following is not considered to be part of the basic financial statements?

a. Management's Discussion and Analysis

b. Government-wide financial statements

c. Fund financial statements

d. Notes to the financial statements

2. Governmental funds nnlifltypically include the following except

a. a Balance Sheet.

b. a Statement of Revenues, Expenditures, and Changes in Fund Balances.

c. a Statement of Cash Flows.

d. a Statement of Revenues, Expenditures, and Changes in Fund Balances—Budget and Actual.

3. Which of the following statements concerning reporting detail in the government-wide financial statements is false?

a. The minimum level of detail for governmental activities is generally by function.

b. Business-type activities must be reported by enterprise fund.

c. Business-type activities must be reported by identifiable activity.

d. Interest expense generally is not allocated to functions for governmental activities.

4. Which of the following types of revenues would not be considered a program revenue?

a. State grant received for drug enforcement activities

b. Occupancy tax levied by reporting government and restricted for use in tourism development activities

c. Recreation fees charged to participate in the city's soccer league

d. Parking fines

5. Which of the following are typically included in functional expenses for governmental activities?

a. Depreciation

b. Interest

c. Departmental supplies

d. Salaries expenses

6. Which of the following statements is true concerning major fund reporting?

a. Major fund reporting is required for governmental funds and enterprise funds

b. The quantitative criteria for identifying major funds must be met for a fund to be reported as a major fund.

c. Major fund reporting is required for governmental and proprietary funds.

d. Fiduciary funds must be reported by major fund.

7. The Balance Sheet for governmental funds would potentially include all of the following items except

a. liens receivable.

b. deferred revenue.

c. bonds payable due in five years.

d. assigned fund balance.

8. The Statement of Revenues, Expenditures, and Changes in Fund Balance does not report

a. interest on long-term debt.

b. charges for services.

c. transfers.

d. depreciation.

9. The fund(s) for which budgetary comparisons would potentially be included in the basic financial statements are

a. General Fund.

b. General Fund and all Special Revenue Funds.

c. General Fund and major Special Revenue Funds.

d. General Fund and all other major governmental funds.

10. Which of the following is an accurate description of major fund reporting concepts?

a. Fiduciary funds must be reported by fund type.

b. Proprietary funds are subject to major fund reporting.

c. Permanent funds are not subject to major fund reporting.

d. Governmental, proprietary, and fiduciary funds are reported by major funds.

Answer rating: 100% (QA)

1 a Justification As per the Governmental Accounting Standard Board Management and Discussion Analysis is supplementary information It is presented be... View the full answer