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| 1.
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According to GASB, in order to be in compliance with generally accepted accounting principles (GAAP), a state or local government's financial report must include: |
| | A) | Basic financial statements |
| | B) | Required supplementary information other than Management's Discussion & Analysis (MD&A) |
| | C) | MD&A |
| | D) | All of the above |
| | E) | None of the above |
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| 2.
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The basic financial statements should include all of the following except: |
| | A) | Notes to the financial statements |
| | B) | Fund financial statements for governmental funds |
| | C) | Government-wide financial statements |
| | D) | Combining statements of nonmajor funds |
| | E) | Fund financial statements for fiduciary funds |
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| 3.
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A financial reporting entity consists of which of the following: |
| | A) | A primary government |
| | B) | Organizations for which a primary government is financially accountable |
| | C) | Other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete |
| | D) | All of the above |
| | E) | None of the above |
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| 4.
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Which of the following is included in the Introductory section of a CAFR? |
| | A) | Letter of transmittal |
| | B) | Auditor's report |
| | C) | Management's Discussion and Analysis |
| | D) | Required Supplementary Information |
| | E) | All of the above |
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| 5.
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Which of the following is included in the Financial section of a CAFR? |
| | A) | Management's discussion and analysis (MD&A) |
| | B) | Statistical information, such as financial trends for the last ten years |
| | C) | Letter of transmittal |
| | D) | Organization charts |
| | E) | All of the above |
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| 6.
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Which of the following is NOT a part of the basic financial statements? |
| | A) | Management's discussion & analysis |
| | B) | Fund financial statements |
| | C) | Notes to the financial statements |
| | D) | Government-wide statements |
| | E) | None of the above |
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| 7.
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Which of the following is NOT a basic requirement for MD&A? |
| | A) | A description of significant capital asset and long-term debt activity during the year |
| | B) | An analysis of balances and transactions of individual funds |
| | C) | A budgetary comparison schedule |
| | D) | A brief discussion of the financial statements |
| | E) | Analysis of the government's overall financial position and results of operations |
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| 8.
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Which of the following is a major feature of the government-wide financial statements? |
| | A) | Prior year data are required to be presented |
| | B) | Modified accrual accounting may be used |
| | C) | Fixed assets are not required to be depreciated |
| | D) | The government-wide financial statements include the primary government and its component units. |
| | E) | The statements reflect the government as a whole, including fiduciary activities |
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| 9.
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Which of the following is NOT a category used in reporting Net Assets on the government-wide Statement of Net Assets? |
| | A) | Restricted |
| | B) | Designated |
| | C) | Invested in capital assets, net of related debt |
| | D) | Unrestricted |
| | E) | All of the above categories are used in reporting net assets |
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| 10.
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On the Statement of Activities, expenses and direct revenues are required to be reported by function, such as general government and public safety. These functions are classified into what categories? |
| | A) | Component units |
| | B) | Governmental activities |
| | C) | Business-type activities |
| | D) | All of the above |
| | E) | None of the above |
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| 11.
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Which of the following is NOT a way in which depreciation expense that serves all functions may be reported on the Statement of Activities? |
| | A) | Charged to general government function |
| | B) | Allocated as an indirect expense |
| | C) | Charged as an extraordinary item |
| | D) | Charged as unallocated depreciation expense |
| | E) | None of the above |
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| 12.
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Which of the following is NOT a program revenue? |
| | A) | Special items |
| | B) | Capital grants and contributions |
| | C) | Charges for services |
| | D) | Operating grants and contributions |
| | E) | None of the above |
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| 13.
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For purposes of the fund financial statements, which of the following is always a major fund? |
| | A) | Capital Projects Fund |
| | B) | Internal Service Fund |
| | C) | Enterprise Fund |
| | D) | Permanent Fund |
| | E) | None of the above |
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| 14.
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Which of the following is an important feature of the Governmental Funds Balance Sheet? |
| | A) | Fund balances are broken down into three categories |
| | B) | Major funds are included; amounts of assets and liabilities for other governmental funds are not reported on the balance sheet |
| | C) | A total column is not required |
| | D) | A reconciliation must be provided between total fund balances shown in the balance sheet and the net assets shown in the government-wide Statement of Net Assets |
| | E) | None of the above |
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| 15.
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Which of the following is NOT an important feature of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances? |
| | A) | Expenditures are reported by character and by function |
| | B) | Revenues are reported by function |
| | C) | The statements is prepared using the current financial resources measurement focus and modified accrual basis of accounting |
| | D) | Special and extraordinary items are shown separately |
| | E) | None of the above |
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| 16.
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Which of the following is true of the Proprietary Funds Statement of Net Assets, or Balance Sheet? |
| | A) | GASB does not require a classified statement with current and noncurrent assets and liabilities shown separately |
| | B) | Net assets are reported in two categories |
| | C) | The balance sheet format is unacceptable |
| | D) | The statement focuses on major enterprise funds; internal service funds are aggregated and reported in a single column |
| | E) | All of the above |
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| 17.
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The Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets uses which measurement focus and basis of accounting? |
| | A) | Current financial resources measurement focus and modified accrual basis of accounting |
| | B) | Economic resources measurement focus and accrual basis of accounting |
| | C) | Economic resources measurement focus and modified accrual basis of accounting |
| | D) | Current financial resources measurement focus and accrual basis of accounting |
| | E) | None of the above |
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| 18.
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What are the categories of cash flows shown on the Statement of Cash Flows for proprietary funds of a general-purpose local government? |
| | A) | Operating, investing, and financing |
| | B) | Operating, debt financing, equity financing, and investing |
| | C) | Operating, noncapital financing , capital and related financing, and investing |
| | D) | Operating, investing, and temporary investing |
| | E) | None of the above |
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| 19.
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Which of the following is NOT a disclosure required in the Notes to the Financial Statements by GASB Codification § 2300.106? |
| | A) | Debt service requirements to maturity |
| | B) | Interfund receivables and payables |
| | C) | A reconciliation of budgetary basis to GAAP |
| | D) | Disclosures about capital assets and long-term liabilities |
| | E) | None of the above |
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| 20.
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Which of the following is required to be included in RSI other than MD&A? |
| | A) | Combining Balance Sheet for nonmajor governmental funds |
| | B) | Information about infrastructure assets reporting using the modified approach, if applicable |
| | C) | Combining Statement of Cash Flows for nonmajor enterprise funds |
| | D) | Combining Statement of Revenues, Expenses and Changes in Fund Net Assets for internal service funds |
| | E) | All of the above |
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| 21.
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An example of a special purpose government would be: |
| | A) | Public employee retirement system |
| | B) | State |
| | C) | County |
| | D) | Municipality |
| | E) | None of the above |
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| 22.
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A special purpose government may combine the fund and government-wide statements, using separate columns and a reconciliation if it: |
| | A) | Has more than one governmental activity |
| | B) | Has only business-type activities |
| | C) | Has both governmental and business-type activities |
| | D) | Has only one governmental activity |
| | E) | None of the above |
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| 23.
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Which GASB Statement address changes to the financial reporting model for public colleges and universities? |
| | A) | Statement 33 |
| | B) | Statement 35 |
| | C) | Statement 11 |
| | D) | Statement 9 |
| | E) | None of the above |
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| 24.
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Under Statement 35, which of the allowable options for reporting would likely be chosen by a public university that DOES NOT have the power to tax? |
| | A) | Governmental activities only |
| | B) | Governmental and business-type activities |
| | C) | Business-type activities only |
| | D) | Fiduciary activities only |
| | E) | None of the above |
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| 25.
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An example of a not-for-profit organization that might be determined to be governmental in nature is: |
| | A) | Privately funded university |
| | B) | A hospital corporation whose stock is traded on a major exchange |
| | C) | Federal government |
| | D) | Foundation of a public college or university |
| | E) | None of the above |
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| 26.
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Which of the following is not a category used in presenting statistical information in the Comprehensive Annual Financial Report? |
| | A) | Cost and dates of acquisition of infrastructure assets |
| | B) | Debt capacity information |
| | C) | Revenue capacity information |
| | D) | Demographic and economic information |
| | E) | Financial trends information |
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| 27.
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Which of the following is NOT a requirement for works of art or historical treasures to be treated as a collection? |
| | A) | The assets must be held for public exhibition, education, or research, and not for financial gain |
| | B) | The assets must be protected, kept unencumbered, and preserved |
| | C) | The assets must have been received from a donor or purchased using proceeds of a grant |
| | D) | The government must have a policy that proceeds from sale of collection items must be used to acquire items for the collection. |
| | E) | Each of the above is a requirement for treating such items as a collection. |
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| 28.
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Which of the following statements about special purpose governments is true? |
| | A) | The government of a city may be classified as a special purpose government. |
| | B) | All special purpose governments are required to present government-wide and fund reporting. |
| | C) | For a special purpose government, governmental activities generally are financed through nonexchange revenues, while business-type activities are financed at least in part by fees charged for goods or services. |
| | D) | GASB has specified that special purpose governments cannot be fiduciary in nature. |
| | E) | All of the above are true. |
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| 29.
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Which are the requirements that must be met for a fund to be classified as a major fund? |
| | A) | Total assets, liabilities, revenues, or expenditures/expenses of the governmental or enterprise fund must be at least 10 percent of the governmental or enterprise category. |
| | B) | The fund must have qualified to be classified as a major fund for at least three of the past five years if it has been in existence for that length of time. |
| | C) | Total assets, liabilities, revenues, or expenditures/expenses are 5 percent of the total of the governmental and enterprise category. |
| | D) | All of the above |
| | E) | Both A and C |
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