Statements include the Statement of Net Position, Statement of Revenues, Expenses and Changes in Fund Net Position, and Statement of Cash Flows.

Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements.

The Statement of Net Position reflects equity as contributed equity and retained earnings.

The Statement of Cash Flows may be prepared using either the direct or indirect methods.

Notes to the financial statements.

Budgetary Comparison Schedule.

Management's Discussion and Analysis.

None of the above; all are considered RSI.

Proprietary funds

Governmental type funds

Fiduciary funds

All of the above

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.

The General Fund is considered to be a major fund when preparing fund basis financial statements if it bears a financial benefit or burden to the primary government.

The General Fund is always considered to be a major fund when preparing fund basis financial statements.

The General Fund is not reported as part of the CAFR.

component units must be reporting in columns (discrete presentation) separate from the funds of a primary government.

counties are component units of the State Government.

Blended and discretely presented component units are to be reported in government-wide financial statements but *not* in fund financial statements.

Component units are included if the primary government is financially accountable for their operations.

Total assets, liabilities, revenues, or expenditures of the individual governmental fund constitutes 10 percent of the governmental funds categories.

Total assets, liabilities, revenues, or expenditures/expenses are 5 percent of the total of the governmental and enterprise category. Other funds may be designated major funds at the discretion of management.

Both are required.

Either will qualify a fund to be a major fund.

Statement of Cash Flows

Statement of Net Position

Statement of Activities

All of the above are required by GASB Statement 34

Outstanding encumberances

The definition of cash and cash equivalents used in the statement of cash flows for proprietary funds

Interfund receivables and payables.

All of the above

Governmental Fund Balance Sheet

Government-Wide Statement of Activities

Statement of Revenues, Expenditure and changes in Fund Balances

Governmental Fund Balance Sheet and Statement of Revenues, Expenditure and changes in Fund Balances

Statement of revenues, expenses, and changes in fund Net Position

Statement of Cash Flows

Both of the above

Neither of the above

differs from accrual accounting only in its failure to recognize long-term assets and liabilities.

records expenses and revenues the same as accrual accounting.

records expenditures and fund balances.

is equivalent to cash accounting

a debit to Estimated Revenues Control.

a credit to Estimated Other Financing Sources Control

a debit to Budgetary Fund Balance-Reserve for Encumberances.

a debit to Appropriations Control.

Nonspendable, Spendable, Assigned, Unassigned

Nonspendable, Restricted, Unrestricted

Restricted, Unrestricted, Assigned, Unassigned

Nonspendable, Restricted, Committed, Assigned, Unassigned

Resources (such as supplies) that are used in operations rather than converted to cash.

The corpus of a permanent fund that may not be spent.

Prepaid insurance.

All of the above are correct.

the residual category for the General Fund.

the only category of Fund balance that may *not* be reported as a negative number.

the designation given for rainy day funds.

none of the above.

Activity

Character

Function

All of the above

taxes.

intergovernmental revenue.

fines and forfeits.

transfers from other funds.

New Building

Regular Salaries

New Computer

Office Equipment

collected in cash.

authorized by the budget ordinance.

taxes become delinquent.

measurable and available.

optional under GASB standards for all funds.

required by GASB for internal management reports only; not permitted for external financial reporting.

required for all governmental fund types.

required for the General Fund, and for special revenue funds, for which an annual budget has been adopted.

Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed as to expenditure for purposes other than debt service or capital projects.

Special revenue funds are used when it is desirable to provide separate reporting of resources that are designed for specific purposes.

Special revenue funds are used when it is desirable to provide separate reporting for funds provided by other govnerments to support capital projects.

Special revenue funds are used when it is desirable to provide separate reporting of resources that are designed for specific purposes and when it is desirable to provide separate reporting for funds provided by other governments to support capital projects.

Expenditures and fund liabilities are recorded when goods and services are received.

Debt service expenditures for principal and interest are accrued.

Expenditures for claims and judgments and landfill post-closure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources.

Compensated absences and special termination benefits of governmental funds that will not be paid with available resources should be reported as liabilities in the government-wide statements.

Transaction between funds are not assumed to be arm's length in nature.

Interfund transactions must be repaid.

Failure to properly report interfund transactions will result in two funds being misstated.

Interfund reimbursement is a payment by one fund to a second fund to repay it for a purchase which belongs in the first fund.

Supplies inventories may be recorded using either the purchase method or the consumption method.

An amount equal to the ending balance of supplies is reported as Nonspendable Fund Balance.

The consumption method is preferable over the purchase method since it requires no adjustment to supplies expense.

All of the above are correct.

more than 90 days after fiscal year end.

more than 60 days after fiscal year end.

more than 30 days after fiscal year end.

after fiscal year end.

Tax Relief Note Payable

Tax Budget Note Payable

Tax Anticipation Note Payable

Tax Encumbrance Note payable

available.

collected.

earned.

expenditures have been made.

Fund balance is increased.

Fund balance is decreased

There is no effect, since one asset (cash) is replaced by another (capital asset).

None of the above, capital assets must be purchased through a capital projects fund.

supplies are ordered.

the budget is recorded.

the books are closed at the end of the year.

equipment previously ordered is received.

Water Expense.

Other Financing Uses-Transfers Out.

Water Utility Expenditure.

None of the above; no entries would be made.

Debit: Budgetary Fund Balance — Reserve for Encumbrances

Debit: Construction expenditures

Credit: Cash

Debit: Encumbrances

when the project is paid for in full.

when the work on the project begins.

when the work on the project is finished.

when a contract is signed or issued.

The corpus (principal) from a permanent fund should be classified as Nonspendable.

Unexpended intergovernmental *grants* and taxes dedicated to capital improvements in a capital projects fund are likely to be classified as Assigned Fund Balance.

The residual classification for funds other than the General Fund is Assigned.

If a bond sinking fund is required by creditors or law, the unexpended resources would be classified as Restricted.

The principal is classified as Nonspendable Fund Balance.

Permanent Funds are created when resources are provided by private donation.

Earnings in excess of expenditures must be added to principal corpus.

Permanent Funds use the current financial resources measurement focus.

All of the governmental funds use the modified accrual basis of accounting.

Debt service fund are required to report accrued interest payable as current liabilities.

General fixed assets that are acquired with governmental fund resources are recorded as expenditures in the governmental funds but are displayed as capital assets in the governmental-wide financial statements.

Permanent funds reflect resources that are legally restricted so that principal may not be expended and earnings are used to benefit the government or its citizenry.

Issuance of long term debt.

Proceeds of dedicated taxes.

Grants from other governments.

All of the above are sources of funding for capital projects.

Payments under capital lease obligations may be reported in debt service funds.

Debt service funds use accrual accounting.

Each separate long-term obligation must be accounted for in a separate debt service fund.

All of the above are true.

General Fund

Capital Projects Fund

General Fund or Capital Projects Fund, depending upon which fund provided the resources.

None of the above.

included as a liability of the General Fund.

recorded as operating transfers to the debt service fund.

included as revenues of the debt service fund.

included as a liability of the General Fund and recorded as operating transfers to the debt service fund.

Permanent Fund.

General Fund.

Private Purpose Trust Fund.

Special Revenue Fund.

Income statement, Statement of Net Position and Statement of Cash Flows

Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows

Statement of Revenues, Expenses and Changes in Fund Balance and Statement of Net Position, and Statement of Cash Flows.

Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Net Position

enterprise funds.

capital project funds.

debt service funds.

internal service funds.

swimming pool.

printing services.

airport.

lottery.

activities that produce goods or services to be provided to other governmental units on a cost reimbursement basis.

activities that produce goods or services to be provided to outside consumers units on a cost reimbursement basis.

Both

Neither

When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered htrough fees and charges.

when debt is backed solely by fees and charges.

when a government has a policy to establish fees and charges to cover the cost of providing services for an activity.

All of the above.

Modified accrual.

Accrual.

Cash.

Budgetary.

A reconciliation is required between the Statement of Revenues, Expenses, and Changes in Fund Net Position and the cash flows from operating activities section of the Cash Flow Statement.

Interest payments are reported as increases in cash flows from either capital and related financing or noncapital financing activities, whichever is appropriate.

Purchases of equipment would be reported in the investing section.

None of the above – these are all true.

in the internal service funds only.

in the government-wide statements only.

in both the internal service funds and the government-wide statements.

none of the above, they are not reported.

Other Financing Sources—Transfers In.

Operating Revenues—Charges for Services.

Other Financing Sources—Charges for Services.

Due from General Fund.

All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as proprietary funds.

Agency funds are accounted for using the same basis of accounting and measurement focus as governmental funds, trust funds are accounted for using the same basis of accounting and measurement focus as proprietary funds.

Trust funds are accounted for using the same basis of accounting and measurement focus as governmental funds, and agency funds are accounted for using the same basis of accounting and measurement focus as proprietary funds.

All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as governmental funds.

Combined with Internal Service Funds.

Combined with Business activities.

Combined with governmental activities.

None of the above.

Fiduciary funds are not included in the government-wide financial statements.

Fiduciary funds include agency, pension (and other employee benefit) trust, private-purpose trust, and investment trust funds.

Both of the above.

Neither of the above.

Revenues and Expenses.

Additions and Deductions.

Revenues and Expenditures.

Contributions and Expenses.

Agency fund

Private-Purpose Trust Fund

Investment Trust Fund

Pension Trust Fund

agency fund

private-purpose trust fund

investment trust fund

pension trust fund

Fiduciary funds' financial statements include the Statement of Fiduciary Net Position, the Statement of Changes in Fiduciary Net Position, and the Statement of Fiduciary Cash Flows.

Fiduciary funds are accounted for using the accrual basis of accounting.

Both of the above.

Neither of the above.

Liabilities + Net Position

Net Position

Liabilities

There are no assets in an Agency Fund.

Debit: Taxes Receivable – Current
Credit: Revenues Control

Debit: Taxes Receivable – Current
Credit: Due from Other Governments

Debit: Taxes Receivable
Credit: Transfer Out

Debit: Taxes Receivable for Other Governments
Credit: Due to Other Governments

GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting.

General capital assets should not be reported as assets in governmental funds but should be reported in the governmental activities column of the government-wide Statement of Net Position.

In addition to the fund basis statement, GASB Statement 34 requires government-wide statements that are prepared on the modified accrual basis using the economic resources measurement focus.

Fiduciary activities are reported in the government-wide statements in a separate column.

Capital Project Fund

Private Purpose Trust Fund

Enterprise Fund

Permanent Fund

Statement of Revenues, Expenses, and Changes in Fund Net Position

Statement of Cash Flows

Both

Neither

General Capital Assets

General Long-Term Debt

Internal Service Funds servicing governmental departments

All of the above

Changing Other Financing Sources – Proceeds of Bonds to Bonds Payable

Changing Expenditures – Bonds Principle to Bonds Payable

Recording the cash received from a debt issue

Amortizing bond premiums

Debit to Capital Assets and credit to Expenditures – Capital Outlay

Debit to Capital Assets and credit to Cash

Debit to Capital Assets and credit to Accumulated Depreciation–Capital Assets and Expenditures – Capital Outlay

Debit to Capital Assets for the book value of the asset and credit to Expenditures – Capital Outlay

Assets are recognized when an enforceable legal claim has arisen or when resources are received, whichever is first.

Revenues are recognized when measurable and available; that is, when collected during the current period or no more than 60 days after the end of the current period.

Both of the above are true.

Neither of the above is true.

Balances from enterprise funds' statements are entered in the business-type activities sections of the government-wide statements without adjustment.

Government-wide statements eliminate interfund transactions, within governmental funds.

Both of the above.

Neither of the above.

a gain of $1,300,000.

a gain of $900,000.

a gain of $500,000.

a gain of $400,000.

Debit to Capital Assets and credit to Expenditures – Capital Outlay

Debit to Capital Assets and credit to Cash

Debit to Capital Assets and credit to Accumulated Depreciation–Capital Assets and Expenditures – Capital Outlay

Debit to Capital Assets for the book value of the asset and credit to Net Position

Park district

Village government

Township government

City government

Special-purpose governments that are engaged in more than one governmental-type activities can combine the fund and government-wide financial statements.

Special-purpose governments that are engaged in a single governmental-type activity may combine the fund and government-wide financial statements.

Special-purpose governments engaged in only one business-type activity have to prepare government-wide financial statements.

Special-purpose governments must be stand-alone local governments.

Required supplementary information

Fund basis financial statement

Government-wide financial statements

None of the above, these are all required

Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position

Statement of Net Position and Statement of Activities

Statement of Net Position, Statement of Activities, Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net Position

Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net Position, and Statement of Cash Flows

GASB requirements for business-type activities of public colleges requires accrual account for debt, include accrual of interest and amortization of debt discount and premium.

Most public college foundations are required to be reported as discretely presented component units in the college's financial report.

Only amounts that are paid by students and third-party payers can be shown as tuition and fee revenue net of any scholarship discounts and allowances.

All of the above are correct.

Revenues sources for public colleges include tuition and fees, state appropriations and donations. All other income is reported as unrelated business income.

Many institutions have most of their restricted resources managed by related entities, known as foundations.

No public colleges have the power to issue debt; it must be issued by the state as general obligation debt.

Public colleges may not choose to report as special-purpose entities engaged only in business-type activities.

special-purpose entities engaged in government and business-type entities.

special-purpose entities engaged in business-type activities only.

Either, depending on the nature of their operations.

Neither.

The accrual basis of accounting is used to measure revenues and expenses.

Revenues are recorded when measurable and available.

Depreiciation expense is recorded.

All of the above are true.

The direct method must be used.

The statement is in the same format required for state and local governmental enterprise funds.

Both are true.

Neither are true.

$37,900,000

$40,200,000

$42,700,000

$45,000,000

GASB & Accrual

GASB & Modified Accrual

FASB & Accrual

FASB & Modified Accrual

Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of Functional Expenses.

Statement of Financial Position, Statement of Activities, Statement of Functional Expenses.

Statement of Financial Position, Statement of Net Assets, Statement of Functional Expenses.

Statement of Financial Position, Statement of Activities, Statement of Cash Flows.

Assigned, Committed, and Unrestricted.

Net investment in capital assets, Restricted, and Unrestricted.

Partially Restricted, Temporarily Restricted, Unrestricted.

None of the above.

Expenses are classified as unrestricted or temporarily restricted.

Expenses must be reported by function, either in the Statement of Activities or in the Notes.

Net assets are classified according to donor-imposed restrictions.

All of the above are true.

is related to administration and fund raising activities.

requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation.

Both are required for the service to be recorded as revenue.

None of the above, contributed services are not recorded as revenue.

record the artwork at its fair market value at the time of receipt as an increase in permanently restricted net assets.

not record the artwork, but provide information about the artwork in the notes.

do either of the above, depending upon the policy of the not-for-profit

record the artwork as both a contribution and an expense.

record the gift as a temporarily restricted revenue, reclassify the funds to unrestricted, and then report the expense as unrestricted.

record the gift and expense as unrestricted.

record the gift and expense as temporarily restricted.

record the gift as a temporarily restricted revenue, reclassify the funds to unrestricted, and then report the expense as unrestricted or record the gift and expense as temporarily restricted.

Expenses are shown only as decreases in unrestricted net assets.

Reclassifications for expiration of time restrictions are shown in the revenues and support section.

Unrealized gains (losses) on investments are shown only as increases (decreases) in unrestricted net assets.

Expenses are classified by function within the categories of Program Services and Supporting Services either in the Statement or the notes.

record the building as permanently restricted.

record the building as tempoarily restricted.

record the building as either unrestricted or temporarily restricted, as long as a consistent policy is followed.

Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets.

$300,000

$200,000

$150,000

$100,000

Government Accountability Office

Governmental Accounting Standards Board

Public Companies Accounting Oversight Board

Government Accounting Oversight Committee

federal funds have been expended in accordance with laws and regulations.

federal funds are protected through a system of internal controls and sound financial management practices.

Both of the above.

Neither of the above.

Attestation engagements

Consulting engagements

Financial audits

Performance audits

provide different opinions on different components of the reporting entity.

only allow one opinion for entire entity not its components.

plan the audit better and increase the effectiveness of substantive procedures.

eliminate the need for Test of Controls

Attestation Engagement

Performance Audit

Nonaudit services

Financial Audit

An auditor is expected to express an opinion on "major programs," which are chosen based on size.

An auditor is required to select all "Type A" programs as major programs.

Both of the above.

Neither of the above.

50%; or 0% if organization is deemed to be Low Risk Audittee.

50%; or 25% if organization is deemed to be Low-Risk Auditee.

100%; or 25% if organization is deemed to be Low-Risk Auditee.

100%; or 50% if organization is deemed to be Low-Risk Auditee.

Adverse.

Disclaimer of opinion.

Qualified.

Unqualified.

Governmental activities

Business-type activities

Each Major Fund

All of the above are opinion units

A charity with gross receipts of < $25,000.

A charity with gross receipts of < $50,000

A charity with gross receipts of < $500,000

A charity with gross receipts of < $500,000 and total assets of < $2.5 million

When transactions and events are recognized.

What transactions and events will be reported.

Where transactions and events will be reported.

Why transactions and events will be reported.

Trust fund

Special revenue fund

Permanent fund

Internal service fund

City hall debt service fund

City utilities enterprise fund

Gasoline tax special revenue fund

City hall capital projects fund

Principal payments

Interest charges

Interest earned

Outstanding balance of the debt being serviced

Internal service fund

Special revenue fund

Capital projects fund

Permanent fund

Enterprise fund

Debt service fund

Internal service fund

Agency fund

General fund

Special revenue fund

Debt service fund

Internal service fund

Internal service fund

Enterprise fund

General fund

Special revenue fund

General fund

Internal service fund

Proprietary fund

Pension trust fund

Accounts payable

Due to special revenue fund

Deferred revenue

Bonds payable, due in 5 years

Because the amount of expenditures is likely to be greater.

Because the penalties for exceeding budgeted expenditures are more severe

Because governments have more sophisticated accounting systems than not-for-profit organizations

Governments are NOT more likely than not-for-profits to formally integrate their budget into their accounting system.

receive in cash.

will be received in cash within 60 days after year-end.

collection in cash is reasonably assured.

collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period.

when they are received in cash.

in the year for which they were levied.

in the year for which they were levied and when collection in cash is reasonably assured.

collected within the current period or expected to be collected soon enough thereafter to bused to pay liabilities of the current period.

the total amount of the levy.

the expected collectible portion of the levy.

the portion of the levy collected.

the portion of the levy collected in the current year or within sixty days after the end of the fiscal period.

$720,000

$648,000

$630,000

$600,000

when goods and services are received, but only if resources are available in the fund.

when invoices are paid.

when purchase orders are issued, regardless of whether or not resources are available in the fund.

when goods and services are received, regardless of whether or not resources are available in the fund.

revenues received within 90 days after year-end.

revenues received within 60 days after year-end.

revenues received within 120 days after year-end.

being up to the judgment of the preparer.

Sales taxes

Property taxes

Fines and forfeitures

Charges for services

City Electric Utility Enterprise Fund

City Hall Capital Projects Fund

City Motor Pool Internal Service Fund

City Employee Pension Trust Fund

Debit Expenditures $90,000; credit Wages and salaries payable $90,000

Debit Expenses $90,000; credit Wages and salaries payable $90,000

Debit Expenditures $90,000; credit Encumbrances $90,000

No entry is required

Debit Expenditures $90,000; credit Wages and salaries payable $90,000

Debit Expenditures $150,000; credit Wages and salaries payable $150,000

Debit Expenses $90,000; credit Wages and salaries payable $90,000

No entry is required

Debit Expenditures $85,000; Credit Cash $85,000

Debit Equipment $85,000; Credit Cash $85,000

Debit Expenses $85,000; Credit Cash $85,000

No entry in the city's governmental funds

Debit Expenditures $85,000; Credit Cash $85,000

Debit Equipment $85,000; Credit Cash $85,000

Debit Expenses $85,000; Credit Cash $85,000

No entry is required