Multiple Choice Questions
52.Which of the following is true regarding the proprietary fund financial statements?
A)Statements include the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows.
B)Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements.
C)The Statement of Net Position reflects equity as contributed equity and retained earnings.
D)The Statement of Cash Flows may be prepared using either the direct or indirect methods.
53.Which of the following is true regarding the fiduciary fund financial statements?
A)Fiduciary fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.
B)Fiduciary fund financial statements include the Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position.
C)Fiduciary fund financial statements reflect equity as reserved and unreserved.
D)Agency funds are reported only on the Statement of Changes in Fiduciary Net Position.
54.Which of the following is
not
considered Required Supplementary Information (RSI)?
A)Notes to the financial statements.
B)Budgetary Comparison Schedule.
C)Management's Discussion and Analysis.
D)None of the above; all are considered RSI.
55.Which of the following is considered Required Supplementary Information (RSI)?
A)Management's Discussion and Analysis.
B)Budgetary Comparison Schedule.
C)Schedule of Risk Management Activities.
D)All of the above are considered RSI.
56.Governmental-type funds label the excess of assets over liabilities on the balance sheet as:
A)Net Position
B)Net Fund Balance and Liabilities
C)Assets Net of Liabilities
D)Fund Balance
57.In addition to the government-wide statements, governments are required to prepare fund financial statements for which of the following category of funds?
A)Proprietary funds
B)Governmental type funds
C)Fiduciary funds
D)All of the above
58.Which of the following is true regarding the Comprehensive Annual Financial Report (CAFR)?
A)The CAFR has three main sections: introductory, financial, and statistical.
B)Required Supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget (unless a statement is prepared).
C)Both of the above.
D)Neither of the above.
59.Which of the following is true regarding the government-wide statements?
A)The governmental activities portion of the government-wide statements is prepared using the current financial resources measurement focus and modified accrual basis of accounting.
B)The government-wide statements include a Statement of Net Position and a Statement of Activities.
C)Both of the above.
D)Neither of the above.
60.Which of the following is true regarding the government-wide Statement of Net Position?
A)Discretely presented component units are included in a separate column (or columns).
B)Net Position is displayed in three categories: net investment in capital assets, reserved, and unreserved.
C)Both of the above.
D)Neither of the above.
61.Which of the following is true with respect to the General Fund
A)The General Fund is considered to be a major fund if the combined total of assets, liabilities, revenues and expenses exceeds 10% of the total of all governmental funds
B)The General Fund is considered to be a major fund when preparing fund basisfinancial statements if it bears a financial benefit or burden to the primary government.
C)The General Fund is always considered to be a major fund when preparing fund basis financial statements.
D)The General Fund is not reported as part of the CAFR.