Details of this Paper

1. Which of the following best describes the GASB...

Description

Solution


Question

1. Which of the following best describes the GASB financial reporting model for state and local governments? A. Required comprehensive annual financial reports for all public entities. B. Integration of government-wide financial reporting and fund accounting. C. Cash basis accounting. D. Focus on individual funds. 2. Combining financial statements for nonmajor funds of a government should be included in A. The basic financial statements. B. The notes to the financial statements. C. As supplementary information in the comprehensive annual financial report (CAFR). D. As part of the statistical section of the comprehensive annual financial report (CAFR). 4. Which of the following kinds of information would not be provided by Management's discussion and analysis (MD&A)? A. A narrative explanation of the contents of the CAFR. B. A description of the government's financial condition. C. A forecast of revenues and expenditures for the next three fiscal years. D. A discussion of economic factors and the budget and tax rates approved for the next year. 8. Which of the following ratios would be most helpful in assessing the liquidity of a governmental entity? A. Net tax-supported long-term debt/population. B. Own source revenues/total revenues. C. Debt service expenditures/total expenditures. D. Unreserved fund balance/operating revenues. 9. All of the following are appropriate benchmarks for a state or local government to use as a basis for comparing performance except A. A government's own operating results and financial position from prior years. B. International City/County Management Association's Financial Trend Monitoring System results for governments of similar types and size. C. Federal agencies' financial information for a comparable time period. D. Socioeconomic and demographic trends of governments of similar types and size available from U.S. Census Bureau. 11. Which of the following budgetary approaches starts with line-item expenditures and applies a factor approximating the inflation rate to most items, unless specific information is available to suggest a different factor be applied? A. Performance budgeting. B. Zero-based budgeting. C. Program budgeting. D. Incremental budgeting. 12. Which of the following is not a typical step in the budgeting process for a state or local government? A. Request by management for input on the budget. B. Review and revisions of the budget by the administrative staff of each unit. C. Public hearings for citizen input. D. Approval by a majority vote of the citizenry. 13. Which of the following is not one of the purposes of a budget considered in the Government Finance Officer Association (GFOA) Distinguished Budget Presentation Award Program? A. As a policy document. B. As a legal document. C. As a financial plan. D. As a communication device. 14. In budgeting revenues, state and local government administrators should A. Be careful not to utilize unauthorized sources or exceed authorized ceilings on revenues from specific sources. B. Ensure that at least the amount of revenues needed to meet spending needs are raised, even if authorized ceilings on some revenue sources must be exceeded. C. Utilize all authorized revenues sources and at the maximum amount allowed by law. D. Ignore "other financing sources" since these resource inflows are not available for appropriation. 15. Responsibility for establishing generally accepted accounting principles (GAAP) for nongovernmental, not-for-profit organizations rests with the FASB and was most clearly established A. In the 1930s. B. When the FASB was created in 1974. C. When the GASB was created in 1984. D. In the AICPA's Statement of Auditing Standards No. 69 (hierarchy of GAAP) in 1992. 16. Statement of Financial Accounting Standards (SFAS) No. 116 on contributions received and contributions made describes measurement and reporting rules for A. Exchange transactions, such as membership dues and charges for services. B. Nonexchange transactions, such as unrestricted and restricted gifts. C. Gains and losses on investment income. D. Investment income (i.e., dividends and interest). 17. Statement of Financial Accounting Standards (SFAS) No. 117 requires the following financial statements for all nongovernmental, not-for-profit organizations A. Statement of financial position, statement of activities, statement of cash flows, and statement of functional expenses. B. Statement of financial position, statement of operations, statement of cash flows, and statement of functional expenses. C. Statement of financial position, statement of activities, and statement of cash flows. D. Statement of financial position, statement of revenues and expenses, statement of cash flows, and statement of functional expenses. 18. Which of the following statements is true regarding fund accounting for not-for-profit organizations (NPOs)? A. Fund accounting may provide a good mechanism for facilitating reporting to donors for restricted grants. B. Fund accounting may be used by NPOs for external purposes, but not internal purposes. C. Fund accounting is not allowed. D. SFAS Nos. 116 and 117 method of reporting three classes of net assets (unrestricted, temporarily restricted, and permanently restricted) replaces fund accounting for both internal and external reporting purposes. 19. Which of the following is not a condition that must be met for contributed services to a not-for-profit organization (NPO) to be recorded as both a contribution and as an expense? A. The service creates or enhances nonfinancial assets, such as a carpenter renovating a building. B. The service is provided by someone who possesses specialized skills, such as a lawyer preparing contracts. C. The service provides tangible benefit, such as serving food to clients. D. The service would have to be purchased if not donated, such as a pro bono annual audit by a local audit firm. 20. Which of the following is required as part of a complete set of financial statements for a private college or university? A. Statement of changes in financial position. B. Statement of revenues, expenses, and changes in net assets. C. Statement of activities. D. Statement of functional expenses. 21. Assets that the governing board of a public university, rather than a donor or other outside agency, has determined are to be retained and invested for future scholarships would be reported as A. An endowment. B. Unrestricted net assets. C. Deposits held in custody for others. D. Restricted net assets. 23. Which of the following statements is not true regarding generally accepted accounting principles (GAAP) applicable to health care organizations? A. Private hospitals follow guidance from the GASB. B. Public health care organizations follow guidance from the GASB. C. The AICPA Audit and Accounting Guide Health Care Organizations provides guidance for public, private, and for-profit health care entities. D. Both for-profit and not-for-profit health care organizations follow guidance from the FASB. 24. The AICPA Audit and Accounting Guide Health Care Organizations requires that health care organizations prepare a balance sheet (or statement of net assets) and the following additional statements: A. Statement of changes in fund balances, statement of changes in equity, and statement of cash flows. B. Statement of revenues and expenditures, statement of changes in equity, and statement of cash flows. C. Statement of operations, statement of changes in equity, and statement of cash flows. D. Statement of operations, statement of changes in equity, statement of cash flows, and statement of functional expenses. 25. If the equity/net assets section of the balance sheet (or statement of net assets) is comprised of unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets, then the health care organization is A. Public, governmental. B. Private, nongovernmental. C. Commercial or proprietary. D. Cannot be determined.

 

Paper#8017 | Written in 18-Jul-2015

Price : $25
SiteLock