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Overview of Financial Reporting for State and Local Governments

In: Business and Management

Submitted By LilianaTito
Words 8043
Pages 33
True/False Questions

1. A Comprehensive Annual Financial Report (CAFR) would include an introductory section, management's discussion and analysis, basic financial statements, required supplementary information other than MD&A, combining and individual fund statements, narrative explanations, and statistical section. Answer: True

2. The three major sections of a CAFR are the Introductory, Financial, and Statistical sections.

Answer: True

3. The introductory and statistical sections of a CAFR are required to be audited.

Answer: False

4. State and local governments are not required to prepare a CAFR.

Answer: True

5. Combining statements are required whenever a non-major column is used in one of the fund financial statements.

Answer: True

6. A complete CAFR includes combining financial statements to reflect major funds.

Answer: True

7. In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds.

Answer: True

8. In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental funds only.

Answer: False

9. The General Fund is not always considered to be a major fund when preparing fund basis financial statements.

Answer: False

10. With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues and expenditures combined are at least 10% of the total for the governmental funds category.

Answer: False

11. With respect to fund basis financial statements, a government may only designate a fund to be a major fund if it meets the size thresholds established by GASB.

Answer: False

12. With respect to fund basis...

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