TheFASB hste achory to establish accounting·nd financial teporting A. Federal go

Question

TheFASB hste achory to establish accounting·nd financial teporting A. Federal govenment B. Private tnot-for-pro fits C. Public not-for profits D. State and local governunents 6, 7. The GASB has the suthority to establish accousting sed financial repoming eavbards ve A. State governments B. Private not-for-profits C. Federal government D. None of the above 8. Which of the following is true regarding the Comprehensive Amual Financial Repon CAF A. The CAFR has three main sections: introductory, financial, and statisticl B. Required Supplementary Information includes a Budgetary Companion Sdndle Ir de Genad Find ind legally adopted annual budget (selnsstatement “prepress) all major special revenue funds that have C. Both of the ahove D. Neither of the above 9. With respect to the preparation of fund basis financial statements, goverssuntal funds other than the General Fund are considered to be major when which of the ow ing ndtns eus A. With respect to fiund basis financial statements, governmental funds are considered to be s majne fond when B. With respect to fund basis financial statements, governmental fiunds ae comsiderad to be a mago fnd whe C. Both A and B are required for a govenmental fiund to be a major fund. total assets, liabilities, revenues, or expenditures of that individual govennetil faenoitte, 10% ofthe total for the governmental fund category total assets, liabilities, revenues, or expenditures of that individual pvernmentul or enterprsehrd as 5% of the total ofthe governmental and enterprise categories, comsbined D. Either A or B would fulfill the requirements 10. Which of the following is true regarding GASB's definition of the ficancial reputing ensy A. The financial reporting entity might include a primary govermment, component units, yiat venturns, or a jointly governed organization B. Primary governments may be general purpose govenments (such as eaten, aties, nd cvaens o ecial purpose governments that have separately elected goveming bodies, are legally sepanite and we focally C Blending is used to incorporate component units when those component uts a inance pet ot he primary government D. All of the above aze true 11. Which of the following is true regarding the Comprebensive Anmal Financial Rapon A. The basic financial statements consist of the government-wide, the govemmenta fnd,the peopritary fund and the fiduciary fund financial statements (and the notes to the financial statements) B. The govemnment -wide financial statements include the Statement of Net Position, the Stemens of Activities, and the Statement of Cash Flows C. Both (A) and (B) are true. D. Neither (A) nor (B) is true 21 Page

Explanation / Answer

6) The FASB has the authority to establish accounting and financial standards for

Solution: Private not-for-profits

Explanation: The FASB is authorized to establish accounting and financial standards for the State governments private not-for-profits

7) The GASB has the authority to establish accounting and financial standards for

Solution: State governments

Explanation: The GASB is authorized to establish accounting and financial standards for the State governments

8) Which of the following is true regarding the Comprehensive Annual Financial Report (CAPR)?

Solution: Both of the above

Explanation: The CAFR consists three prmiarysections: introductory, financial, and statistical. The requisites are Budgetary Comparison Schedule for the General Fund and all main special revenue funds that have been a legally adopted annual budget

9) With respect to the preparation of funds basis financial statements, governmental funds other than the General Fund are considered to be major when which of the following conditions exist?

Solution: Both A and B are required for a governmental fund to be a major fund

Explanation: 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 of: 10% of the total for the governmental fund category or 5% of the total of the governmental and enterprise categories, combined.

10) Which of the following is true regarding the GASB's definition of the financial reporting entity?

Solution: All of the above are true

Explanation: The GASB Accounting and Reporting Capabilities Principle specify a governmental accounting system must make it possible to both -fair presentation of the basic financial statements as in conformity with GAAP; and demonstrate compliance with financial related legal and contractual provisions

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