Question :
61.With respect to the preparation of fund basis financial statements, : 1255410
61.With respect to the preparation of fund basis financial statements, governmental funds other than the General Fund are considered to be major when which of the following conditions exist?
A)With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of that individual governmental fund constitutes 10% of the total for the governmental fund category.
B)With respect to fund basis financial statements. governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of that individual governmental or enterprise fund are 5% of the total of the governmental and enterprise categories, combined.
C)Both A and B are required for a governmental fund to be a major fund.
D)Either A or B would fulfill the requirements.
62.With respect to the preparation of fund basis financial statements, governmental funds other than the major fund are considered to be major when which of the following conditions exist?
A)With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of the individual governmental fund under consideration constitutes 25% of the total for the governmental fund category.
B)With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of individual governmental or enterprise fund under consideration are 15% of the total of the governmental and enterprise categories, combined.
C)Both A and B are required for a governmental fund to be a major fund.
D)Neither A nor B are correct.
63.Which of the following statements is false?
A)With respect to fund basis financial statements, a government may designate any fund to be a major fund if reporting that fund separately would be useful.
B)When preparing fund basis financial statements, any funds not reported separately are aggregated and reported in a single column under the label non-major funds.
C)When preparing fund basis financial statements, any funds not reported separately are reported by function.
D)In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds.
64.Governmental fund statements are prepared using:
A)Economic resources measurement focus and modified accrual basis of accounting.
B)Current financial resources measurement focus and modified accrual basis of accounting.
C)Economic resources measurement focus and accrual basis of accounting.
D)Current financial resources measurement focus and accrual basis of accounting.
65.The total fund balances presented in Governmental Funds Statements are different from the total net assets on the government-wide Statement of Net assets. Which of the following is not a reason for this difference?
A)The two statements have different bases of accounting
B)Capital assets used in government operations are not financial resources and therefore are not reported in the funds
C)Some liabilities are not due and payable in the current period and are not reported in fund liabilities
D)Accrued Wages Payable at year end are reported on the statement of net assets but are not reported in the fund statements
66.Which of the following is true regarding GASB’s definition of the financial reporting entity?
A)The financial reporting entity might include a primary government, component units, joint ventures, or a jointly governed organization.
B)Primary governments may be general-purpose governments (such as states, cities, and counties) or special-purpose governments that have separately elected governing bodies, are legally separate and are fiscally independent of other state or local governments.
C)Blending is used to incorporate component units when those component units are, in substance, part of the primary government.
D)All of the above are true.
67.Which of the following is true regarding the financial reporting entity of a state or local government?
A)Many component units are discretely presented, rather than blended.
B)A school district could never be a primary government.
C)Only a primary government is reported in the government-wide statements.
D)All of the above are true.
68.Which of the following is true regarding the composition of the Comprehensive Annual Financial Report (CAFR)?
A)The CAFR is required in order to be in conformity with Generally Accepted Accounting Principles (GAAP).
B)The CAFR is to include both blended and discretely presented component units.
C)The CAFR contains four major sections: introductory, financial, supplementary, and statistical.
D)All of the above are true.
69.Which of the following is true regarding Management’s Discussion and Analysis (MD&A)?
A)MD&A is not considered part of Required Supplementary Information (RSI).
B)MD&A takes the place of footnotes.
C)MD&A should present an analysis of significant variations between the original and final budget.
D)All of the above are true.
70.Under GASB rules for the financial reporting entity:
A)component units are included if the primary government is financially accountable for their operations.
B)counties are component units of the State Government.
C)blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements.
D)component units must be reported in columns (discrete presentation) separate from the funds of a primary government.
