Best Practices - Financial Reporting

Question 1

The following are reasons for what?

1) heightened awareness of financial information
2) universal accessibility of financial information
3) increased potential for interaction with users
4) enhanced diversity

Answer 1

Publishing financial information online.

Question 2

GFOA recommends individual state and local governments prepare their annual financial statements in accordance with ______.

Answer 2

GAAP

Question 3

What are some ways to meet or exceed minimum GAAP requirements?

Answer 3

Maintain adequate accounting systems, hire adequate employees, issue timely statements, have statements audited in accordance with GAGAS, utilize GFOA checklists.

Question 4

Recording data timely throughout the year, closing and financial statement preparation processing, implementing new standards are all factors of what?

Answer 4

Timely financial reports.

Question 5

Does the GFOA recommend departmental reports include MD&A and RSI?

Answer 5

Yes

Question 6

What is the goal of the Popular Annual Financial Report (PAFR)?

Answer 6

To provide a summarized, reader friendly version of the financial statements that can be understood by those unfamiliar with accounting and financial reporting.

Question 7

How should differences in legal requirements vs. financial reporting requirements be handled. For example, if state law required a special revenue fund that did not meet GASB definition…

Answer 7

The government would report the SRF as the general fund, but include additional schedules and narrative information in the notes neccessary to report its legal compliance.

Question 8

How does GFOA recommend a government report its budgetary comparisons?

A. As part of the basic financial statements
B. As part of the notes to the financial statements
C. As RSI
D. As SI

Answer 8

A, because then they are audited as part of the basic financial statements.