Which ratio or concept describes the extent to which the government has lived within its means for the year?
Debt to assets.
Which of the following statements about credit analysts' models is true?
Credit analysts focus primarily on demographic statistics and management's long-term investment strategies.
Credit analysts have access to the same set of information that internal managers use.
Credit analysts are concerned with assessing a government's ability to pay interest and principal on debt when due.
Credit analysts rarely use comprehensive annual financial reports.
One of the most important reasons to evaluate the financial performance of a government is to
Determine if property taxes and other revenue sources should be increased.
Assign responsibility for success or failure of the government to certain parties.
Determine whether the government is accomplishing its mission.
Have an early warning of impending financial difficulty for a diverse set of decision makers.
Recognizing revenues when measurable and available for paying current obligations and expenditures when incurred describes which basis of accounting?
Which of the following sections is not considered a part of a federal agency's performance and accountability report?
Basic financial statements.
Annual performance report.
Management's discussion and analysis.
Under GASB standards which of the following funds can report a positive amount for unassigned fund balance?
Capital projects fund.
Special revenue fund.
All of the answers are correct.
In reconciling the net change in fund balances to the change in net position of governmental activities which of the following would increase the balance of change in net position of governmental activities?
Issuance of long-term debt.
Construction of capital assets.
Accrual of interest expense.
Which of the following is not one of the methods recommended by the GASB for communicating information to external users of government financial reports?
Providing information via newsletters.
Recognition in the financial statements.
Presentation as required supplementary information.
Disclosure in the notes to the financial statements.
The measurement focus and basis of accounting that are most unlike those used by business entities are those used by
Which of the following funds are proprietary funds?
Enterprise funds, investment trust funds, pension trust funds, and the General Fund.
Enterprise funds and internal service funds.
Internal service funds, special revenue funds, and enterprise funds.
Proprietary funds are not used in governmental accounting.
Capital assets used by departments accounted for by the General Fund of a governmental unit should be accounted for in
The General Fund.
The governmental activities journal.
The business-type activities journal.
The general capital assets fund.
In financial reporting for proprietary funds and at the government-wide level, the employer's pension expense for the period is equal to:
The employer's contribution.
Annual required contribution.
Annual pension cost.
The change in net pension obligation.
Which of the following activities would be accounted for by a trust fund?
Deposits held for customers of a city-owned electric utility.
Assets passed-through the state government to the local government.
Assets held for special assessment bondholders for which the city has no liability.
Assets which are used to assist in the preservation of a private residence that is of historical significance to the city.
In which of the following circumstances would it be inappropriate to report the assets in the fiduciary fund financial statements?
When assets are held for the families of the government's police officers killed in the line of duty.
When assets are held for other funds of the same government.
When assets are held for other governments in an investment pool.
When assets are held for Internal Revenue Code Section 457 deferred compensation plans.
The Expenditures control account of a government is credited when:
Supplies are ordered.
Supplies previously encumbered are received.
The budget is recorded.
Temporary accounts are closed out at the end of the year.
The Appropriations account of a governmental fund is credited when
The budgetary accounts are closed.
Supplies are purchased.
Expenditures are recorded.
Which of the following would be reflected in the operating statement of a proprietary fund?
Incurrence of interest expense.
Repayment of the principal of debt.
Issuance of debt.
Purchase of a capital asset.
The Capitol City Golf Course, an enterprise fund, purchased new furniture for use in the golf pro's office. The debit for the entry to record the event should be to
Furniture and fixtures.
General capital assets.
Sales revenues of a utility for a certain fiscal period
Are equivalent to total debits to Customer Accounts Receivable for that period.
Include receivables billed during a fiscal period, plus receivables billed early in the next year if meters were read before year-end.
Should be reported on the cash basis for the sake of conservatism.
Include billed receivables and an accrual for unbilled receivables as of the balance sheet date.
The earnings on the assets of a permanent fund are to be used to support the city's library (special revenue fund). How would the earnings be recorded?
Revenues by the permanent fund.
Revenues by the library.
Revenues by both the permanent fund and the library.
Other financing source by the permanent fund.
Which of the following is not a program revenues classification used in the governmental activities journal and reported in the government-wide statement of activities?
Operating grants and contributions.
Charges for services.
Capital grants and contributions.
The General Fund of the city of Castle Rock transfers $115,000 to the debt service fund for a $100,000 bond principal and $15,000 interest payment. Subsequent payment of the principal and interest would include
A debit to Expenditures - Bond Interest in the debt service fund.
A debit to Other Financing Uses - Principal and Interest Payments in the debt service fund.
A debit to Interest Expenditures in the General Fund.
A debit to Interest Expenditures in the governmental activities accounts.
Which of the following is not true?
The debt service activity of a government may be properly accounted for within the General Fund unless law mandates the use of a debt service fund.
Debt service funds, unlike the General Fund and special revenue funds, do not use budgetary accounting procedures.
Expenditures for interest on tax supported long-term debt are not accrued, even though debt service funds are accounted for on the modified accrual basis.
At year-end, budgetary and operating statement accounts of a debt service fund are closed in the same manner as is true for a General Fund or special revenue funds.
When a government transfers the rights and obligations of an asset to another legally separate governmental or private sector entity, the transaction is referred to as
A capital lease.
An operating lease.
A service concession arrangement.
A sale-leaseback agreement.
Which of the following statements is prepared by all not-for-profit organizations?
Statement of financial position.
Statement of functional expenses.
Statement of revenues, expenses, and changes in net position.
Both Statement of financial position and Statement of functional expenses.