State & Local Govt - Financial Reporting

Expenditure trend information.

Revenue capacity information.

Demographic and economic information.

Debt capacity information.

A narrative explanation of the contents of the CAFR.

A description of the government's financial condition.

A forecast of revenues and expenditures for the next three fiscal years.

A discussion of economic factors and the budget and tax rates approved for the next year.

The potential component unit is precluded from issuing long-term debt.

The potential component unit raises taxes without the approval of the primary government.

The budget of the potential component unit must be approved by the primary government.

The potential component unit sets user charges with approval of the primary government.

Five.

Six.

Seven.

Nine.

In the management's discussion and analysis preceding the financial statements.

In aggregate amounts in a single column in the fund financial statements.

In a note disclosure following the financial statements.

In the government-wide financial statements.

Both proprietary and governmental funds.

Governmental but not proprietary funds.

Proprietary but not governmental funds.

Both proprietary and fiduciary funds.

Comprehensive annual financial report.

Basic financial statements.

Required supplementary information.

Popular report.

The primary government is entitled to its share of any dividends distributed by the PCU.

The primary government is obligated to provide financial support to the PCU.

The primary government is obligated for the PCU's debt.

The primary government is entitled to the PCU's resources.

In the basic financial statements.

In the notes to the financial statements.

As a part of the financial section of the comprehensive annual financial report (CAFR).

As part of the statistical section of the comprehensive annual financial report (CAFR).

Special assessments.

Operating grants and contributions.

Sales taxes.

Transfers.

In a separate column from that of the primary government.

By discrete presentation.

By blending.

All of the statements are acceptable methods of display.

Financial interdependence.

Financial accountability.

Political responsibility.

Taxing authority.

Financial data for the sewer district should be reported as part of the Village of Clinton reporting entity.

The sewer district is financially dependent on the primary government.

The village has the ability to impose its will on the sewer district.

All of the statements are correct.

The city council is able to impose its will on the Library District.

The Library District is a component unit of the city reporting entity.

The Library District is not a component unit of the city reporting entity.

Both The city council is able to impose its will on the Library District and The Library District is a component unit of the city reporting entity are correct.

Interim reporting is highly recommended for sound financial administration.

GASB standards require quarterly reports.

The Securities and Exchange Commission requires state or local governments with outstanding public debt to provide quarterly financial reports to bondholders.

Both GASB standards require quarterly reports and The Securities and Exchange Commission requires state or local governments with outstanding public debt to provide quarterly financial reports to bondholders are correct.

MD&A, basic financial statements, and notes to the financial statements.

Introductory, financial, and statistical sections.

MD&A, financial, and statistical sections.

Audit, MD&A, and the financial section.

Basic financial statements that include both government-wide and fund financial statements.

Combining statements and individual fund statements.

Required supplementary information.

All of the statements are correct.

Management's discussion and analysis (MD&A).

Audit report.

Letter of Transmittal.

All of these items are recommended for inclusion in the introductory section.

Schedule of revenues, expenditures, and changes in fund balance—budget and actual.

Statement of activities.

Statement of revenues, expenses, and changes in fund net position—proprietary funds.

Statement of changes in fiduciary net position.

Reserved, unrestricted—designated, unrestricted—undesignated.

Net investment in capital assets, restricted, and unrestricted.

Unrestricted, temporarily restricted, and permanently restricted.

None of the answers are correct.

The MD&A should provide an overview of the government's financial activities and financial highlights.

The MD&A should provide a narrative explanation of the contents of the CAFR.

The MD&A should provide management's long-term forecast of the government's financial condition.

The MD&A should describe the government's financial condition, financial trends of the government as a whole and of its major funds, budgetary highlights, and activities affecting capital assets and related debt.

The governmental funds financial statements display totals for each fund type in separate columns.

The governmental funds financial statements display financial information for each major governmental fund in separate columns and display the totals for all nonmajor governmental funds in a single column.

The governmental fund financial statements are prepared using the accrual basis of accounting and the economic resources measurement focus.

The governmental funds balance sheet reports general capital assets, net of depreciation, and general long-term liabilities.

Function/program expenses – program revenues = net (expenses) revenues –/+ general revenues = change in net position.

Operating expenses – operating revenues +/- nonoperating revenues (expenses) = change in net position.

Operating revenues – operating expenses +/- nonoperating revenues (expenses) = change in net position.

Program revenues – function expenses + general revenues = net change in position.

Financial information.

Revenue capacity.

Debt capacity.

All of the statements are correct.

Part of the various program expenses.

A separate line-item below the program expenses.

A separate line-item below general revenues in the lower part of the statement.

All of the statements are permissible under GASB standards.

Capital assets used in governmental activities.

Long-term liabilities reported in governmental activities.

Accumulated depreciation on capital assets used in governmental activities.

Both Capital assets used in governmental activities and Accumulated depreciation on capital assets used in governmental activities would be added.

Depreciation expense for the year.

The proceeds of new bond issuances.

Repayment of long-term debt.

Both Depreciation expense for the year and The proceeds of new bond issuances are correct statements.

Restricted fund balance.

Committed fund balance.

Assigned fund balance.

Unassigned fund balance.

Restricted fund balance.

Committed fund balance.

Assigned fund balance.

Nonspendable fund balance.