Test
State & Local Govt - Financial Reporting
Preguntas del test (29)
1Which of the following is not a category found in the statistical section of the comprehensive annual financial report (CAFR)?
- AExpenditure trend information.
- BRevenue capacity information.
- CDemographic and economic information.
- DDebt capacity information.
2Which of the following kinds of information would not be provided by management's discussion and analysis (MD&A)?
- AA narrative explanation of the contents of the CAFR.
- BA description of the government's financial condition.
- CA forecast of revenues and expenditures for the next three fiscal years.
- DA discussion of economic factors and the budget and tax rates approved for the next year.
3Which of the following is evidence of fiscal independence for the purpose of considering whether one legally separate organization is a component unit of another?
- AThe potential component unit is precluded from issuing long-term debt.
- BThe potential component unit raises taxes without the approval of the primary government.
- CThe budget of the potential component unit must be approved by the primary government.
- DThe potential component unit sets user charges with approval of the primary government.
4Under GASB standards, if a government only has six governmental funds and two enterprise funds how many basic financial statements would it prepare?
- AFive.
- BSix.
- CSeven.
- DNine.
5Under GASB standards, where are nonmajor funds are reported?
- AIn the management's discussion and analysis preceding the financial statements.
- BIn aggregate amounts in a single column in the fund financial statements.
- CIn a note disclosure following the financial statements.
- DIn the government-wide financial statements.
6The comprehensive annual financial report (CAFR) of a government should contain a statement of revenues, expenses, and changes in net position for
- ABoth proprietary and governmental funds.
- BGovernmental but not proprietary funds.
- CProprietary but not governmental funds.
- DBoth proprietary and fiduciary funds.
7Some governments provide to their citizens highly condensed financial information, budget summaries, and narrative descriptions. This report is called a(an)
- AComprehensive annual financial report.
- BBasic financial statements.
- CRequired supplementary information.
- DPopular report.
8Which of the following factors would not indicate that a potential component unit (PCU) imposes a financial burden or provides a financial benefit to the primary government?
- AThe primary government is entitled to its share of any dividends distributed by the PCU.
- BThe primary government is obligated to provide financial support to the PCU.
- CThe primary government is obligated for the PCU's debt.
- DThe primary government is entitled to the PCU's resources.
9Combining financial statements for nonmajor funds of a government should be included
- AIn the basic financial statements.
- BIn the notes to the financial statements.
- CAs a part of the financial section of the comprehensive annual financial report (CAFR).
- D As part of the statistical section of the comprehensive annual financial report (CAFR).
10Which of the following is a required program revenue category in the government-wide statement of activities?
- ASpecial assessments.
- BOperating grants and contributions.
- CSales taxes.
- DTransfers.
11If a component unit is, in substance, a part of the primary government, its financial data should be reported:
- AIn a separate column from that of the primary government.
- BBy discrete presentation.
- CBy blending.
- DAll of the statements are acceptable methods of display.
12The primary criterion considered in determining whether a potential component unit should be reported as part of the governmental reporting entity is:
- AFinancial interdependence.
- BFinancial accountability.
- CPolitical responsibility.
- DTaxing authority.
13Six of the nine members of the board of trustees of the Clinton Sewer District are appointed by the village council of Clinton and the council has the power to remove board members at its discretion. In addition, the village must approve any bond issues of the sewer district and is secondarily obligated to pay debt service on bonds recently issued by the district to construct a new sewage treatment plant, should sewage revenues be insufficient to make principal and interest payments. Based on the GAAP criteria for defining the reporting entity it would appear that:
- AFinancial data for the sewer district should be reported as part of the Village of Clinton reporting entity.
- BThe sewer district is financially dependent on the primary government.
- CThe village has the ability to impose its will on the sewer district.
- DAll of the statements are correct.
14A majority of the members of the Jamestown library board are appointed by the city council of Jamestown, but the city council has no power to remove members for cause (removal requires a recall petition vote by voters of the Library District). The Library District is a separate legal entity. The library board has the power to levy its own property taxes and, with the approval of a majority of registered voters in the district, can issue tax-exempt bonds. Although the Library District must submit an informational copy of its annual budget to the city council, the council's approval is not required. The city has no obligation to subsidize the Library District's operations and has no obligation for its debt. The city has no claim on any financial resources of the Library District. Based on the GAAP criteria for defining the reporting entity it would appear that:
- AThe city council is able to impose its will on the Library District.
- BThe Library District is a component unit of the city reporting entity.
- CThe Library District is not a component unit of the city reporting entity.
- DBoth The city council is able to impose its will on the Library District and The Library District is a component unit of the city reporting entity are correct.
15Which of the following is correct regarding interim financial reports?
- AInterim reporting is highly recommended for sound financial administration.
- BGASB standards require quarterly reports.
- CThe Securities and Exchange Commission requires state or local governments with outstanding public debt to provide quarterly financial reports to bondholders.
- DBoth GASB standards require quarterly reports and The Securities and Exchange Commission requires state or local governments with outstanding public debt to provide quarterly financial reports to bondholders are correct.
16The three sections of a comprehensive annual financial report (CAFR) prepared in conformity with GASB standards are the:
- AMD&A, basic financial statements, and notes to the financial statements.
- BIntroductory, financial, and statistical sections.
- CMD&A, financial, and statistical sections.
- DAudit, MD&A, and the financial section.
17Under GASB standards, the financial section of a comprehensive annual financial report (CAFR) includes:
- ABasic financial statements that include both government-wide and fund financial statements.
- BCombining statements and individual fund statements.
- CRequired supplementary information.
- DAll of the statements are correct.
18Which of the following items is recommended for inclusion in the introductory section of a CAFR?
- AManagement's discussion and analysis (MD&A).
- BAudit report.
- CLetter of Transmittal.
- DAll of these items are recommended for inclusion in the introductory section.
19Under the GASB reporting model, which of the following is not a basic financial statement?
- ASchedule of revenues, expenditures, and changes in fund balance—budget and actual.
- BStatement of activities.
- CStatement of revenues, expenses, and changes in fund net position—proprietary funds.
- DStatement of changes in fiduciary net position.
20Under the GASB reporting model, net position in the government-wide statement of net position should be divided into the categories of:
- AReserved, unrestricted—designated, unrestricted—undesignated.
- BNet investment in capital assets, restricted, and unrestricted.
- CUnrestricted, temporarily restricted, and permanently restricted.
- DNone of the answers are correct.
21Which of the following is not a true statement regarding a management's discussion and analysis (MD&A) prepared by a state or local government?
- AThe MD&A should provide an overview of the government's financial activities and financial highlights.
- BThe MD&A should provide a narrative explanation of the contents of the CAFR.
- CThe MD&A should provide management's long-term forecast of the government's financial condition.
- DThe MD&A should describe the government's financial condition, financial trends of the government as a whole and of its major funds, budgetary highlights, and activities affecting capital assets and related debt.
22Which of the following statements is true regarding the basic financial statements prepared for governmental funds in the GASBS reporting model?
- AThe governmental funds financial statements display totals for each fund type in separate columns.
- BThe governmental funds financial statements display financial information for each major governmental fund in separate columns and display the totals for all nonmajor governmental funds in a single column.
- CThe governmental fund financial statements are prepared using the accrual basis of accounting and the economic resources measurement focus.
- DThe governmental funds balance sheet reports general capital assets, net of depreciation, and general long-term liabilities.
23Which of the following best represents the format for the government-wide statement of activities?
- AFunction/program expenses – program revenues = net (expenses) revenues –/+ general revenues = change in net position.
- BOperating expenses – operating revenues +/- nonoperating revenues (expenses) = change in net position.
- COperating revenues – operating expenses +/- nonoperating revenues (expenses) = change in net position.
- DProgram revenues – function expenses + general revenues = net change in position.
24Among other categories, the statistical section of a CAFR prepared in conformity with GASB standards should provide 10-year trend information relating to:
- AFinancial information.
- BRevenue capacity.
- CDebt capacity.
- DAll of the statements are correct.
25In preparing financial information to be reported in the Governmental Activities column of the government-wide statement of activities, depreciation expense is usually reported as:
- APart of the various program expenses.
- BA separate line-item below the program expenses.
- CA separate line-item below general revenues in the lower part of the statement.
- DAll of the statements are permissible under GASB standards.
26Which of the following would be added to total fund balances in the governmental funds balance sheet to reconcile the amount to reported total net position, governmental activities, on the government-wide statement of net position?
- ACapital assets used in governmental activities.
- BLong-term liabilities reported in governmental activities.
- CAccumulated depreciation on capital assets used in governmental activities.
- DBoth Capital assets used in governmental activities and Accumulated depreciation on capital assets used in governmental activities would be added.
27When reconciling the net change in fund balances on the statement of revenues, expenditures and changes in fund balances—governmental funds to the governmental activities change in net position on the government-wide statement of activities which of the following would be added?
- ADepreciation expense for the year.
- BThe proceeds of new bond issuances.
- CRepayment of long-term debt.
- DBoth Depreciation expense for the year and The proceeds of new bond issuances are correct statements.
28A city has an ordinance passed by its city council indicating that resources received from a user charge can be used only for a specified purpose. Which of the following fund balance classifications would be used to report the resources related to the user charge?
- ARestricted fund balance.
- BCommitted fund balance.
- CAssigned fund balance.
- DUnassigned fund balance.
29Which of the following fund balance classifications would be used by the city's permanent fund to report its endowment resources on its balance sheet?
- ARestricted fund balance.
- BCommitted fund balance.
- CAssigned fund balance.
- DNonspendable fund balance.
Información
- Descripción
- Chapter 9
- Autor
- turquoise_cat
- Idioma
- English
- Visitas
- 962
- Etiquetas
- Valoración
- 5,0 de 5 · 1 valoración Valora este test