Chapter 11

Question 0

blending

Answer 0

combines a component of unit’s transactions and balances with the data of the primary government as if the component unit were a part of that government

Question 1

affiliated organizations

Answer 1

legally independent entity directly tied to a primary government

Question 2

component units

Answer 2

legally separate government for which the elected officials of a primary government are financially accountable.

Question 3

Discrete presentation

Answer 3

reports the component unit in a single column separate from teh data of the primary government.

Question 4

fiscal dependence

Answer 4

unit is fiscally dependent on the primary government if it is unable to determine its own budget, levy taxes or set rates, or issue bonds without approval of the primary government

Question 5

fiscal effort

Answer 5

extent to which a government is taking advantage of its fiscal capacity

Question 6

joint venture

Answer 6

contractual arrangement whereby two or more participants agree to carry out a common activity, with each sharing in both risks and rewards

Question 7

primary government

Answer 7

Has a separately elected governing body, is legally separate from other primary governments and is fiscally independent of other governments

Question 8

related organization

Answer 8

entity is financial accountable, but does not qualify as a component unit (missing other criteria)

Question 9

an organizations legal entity differs from

Answer 9

its economic entity

Question 10

Reporting entity should include:

Answer 10

primary government

component units

Question 11

governmental entity considers a component unit to be major if

Answer 11

assets, liabilities, revenues or expenses exceed:

• 10% of that component unit’s class
• 5% of all component units combined.

Question 12

Primary government is financially accountable for another government if

Answer 12

primary government appoints a voting majority of the unit’s governing body or a majority of the unit’s governing body is composed of primary government officals.

Question 13

Component unit if

Answer 13

primary government is able to impose its will upon the potential component unit.
compone uit is able to provide specific financial benefits to or impose specific financial burdens on, the primary government.

Question 14

component unit is fiscally accountable only if

Answer 14

the primary government controls the appointment of its governing board.

Question 15

if componet unit is fiscally dependent on primary government

Answer 15

it is fiscally accountable even if its governing bodies are not appointed by the primary government

Question 16

primary government must disclose detailed information about each major componet unit in either

Answer 16

government-side statements (separate column)
notes to the financial statements
combining financial statements (one column per major unit)

Question 17

joint ventures

Answer 17

contractual agreement to carry out a common activity,with the participants sharing both risks and rewards

Question 18

GASB #34 stats related organizations

Answer 18

staisfies only the financial accountability criterion
do not qualify as a component unit
cannot be incorporated into the primary government’s financial statements

Question 19

affiliated organizations actions:

Answer 19

provide assistance to associated government
primary government does not appoint governing boards
not fiscally dependent on the primary

Question 20

GASB#39 requires gov. to report organizations as discretely presented component units if:

Answer 20

Legally separate

Tax exempt and all conditions

Question 21

Tax exempt and conditions for discretely presented component units

Answer 21

economic resoruces held for the direct benefit of th eprimary or component
primary or its componet have direct acccess to economic resources
economic resources held or received are significant to that primary

Question 22

CAFR

Answer 22

Comprehensive Annual Financial Report

Question 23

Comprehensive Annual Financial Report Sections

Answer 23

Introductory
Financial
Statistical

Question 24

Introductiory section includes

Answer 24

table of contents | letter of transmittal

Question 25

Most informative component of the CAFR?

Answer 25

Introductory

Question 26

Sections of Introductory

Answer 26

formal transmittal of the CAFR Government Profile Information on economic conditions awards and acknowledgements

Question 27

Financial Section of the CAFR includes

Answer 27

Auditor's report Management's Dicussion and Analysis Required Supplementary information Combining statements, individual statements, and schedules

Question 28

Statistical section of the CAFR includes

Answer 28

Supplements the financial statemtnes | Incluedes five categories of information

Question 29

Five categories of information found in the statistical section of CAFR

Answer 29

``` Financial trends Revenue capacity Debt capacity Demographic and economic statistics Operating data ```

Question 30

Special Purpose governments reporting requirements

Answer 30

Same reporting and disclousure as gp gov. gov. and fund statements if business and governmental type activities if in single gov. program, gov. and fund can be combo enganed only in business (only statements for enterprise and finance of CAFR)

Question 31

Reporting requirements for volleges and Universities

Answer 31

#34 should be subject to same reprting requirements as special purpose entities as only in business only in governmental in both

Question 32

Public colleges and univeristies follow ____ pronouncements

Answer 32

GASB

Question 33

Not-for-profit colleges and universities follow _____ pronouncements

Answer 33

FASB

Question 34

What is the single richest source of data in assessing the financial condition of a government

Answer 34

CAFR it provides raw date of relationships and trends | and burdent of ananlysis fall upon individual users

Question 35

Factors that affect fiscal condion

Answer 35

``` demographic economic political social population enterprises technology ```

Question 36

fiscal effort formula

Answer 36

per capita rev. from own sources/median family income or | rev. from own sources/total appraised value of property

Question 37

Goals of financial analysis

Answer 37

Evaluate the ability of a government to provide the services expected of it in the future preparing pro forma statements identify key risks and uncertainties examin a # of what if situations

Question 38

Record fisxed assets and realted accum. depr values at the close of the prior year-offset with net assets

Answer 38

Fixed Assets Accum. Depr Net Assets

Question 39

Record fixed assets acquired in the current year

Answer 39

Fixed Assets | Expend-Capital Asset

Question 40

Record Depreciation on fixed assets purchased in the current year

Answer 40

Depr Exp. | Accum. Depr

Question 41

Record long-term debt values at the close of the prior yr-offset with Net Assets

Answer 41

Net Assets | Bonds Payable

Question 42

Record current year long-term debt

Answer 42

OFS-Procees of Bonds Bonds Payable (include premuim or discount as applies)

Question 43

Record current year interest payments on long-term debt

Answer 43

interest Exp. | interest Expenditure

Question 44

Reverse prior year interest accural

Answer 44

Accrued interest payable | Net Asset

Question 45

Record current year expense and accrual

Answer 45

Interest Expense | Accrued Interest Payable

Question 46

Amoritze premium

Answer 46

Premium | interest Exp

Question 47

Amortize Discount

Answer 47

Interest Expense | Discount on Bonds

Question 48

Recognize rev. on a full accrual basis

Answer 48

deferred Revenue | Revenue

Question 49

Reverse prior year full accrual rev. recognition

Answer 49

Rev. | Net Assets

Question 50

Record long-term protion of outstanding debt

Answer 50

Expense | Payable

Question 51

Record assets and liabilities of ISF to governmental funds

Answer 51

Assets Liabilities Net Assets

Question 52

Eliminate the rev. and expense of the ISF

Answer 52

Revenue Expenses Net Assets

Question 53

Eliminate receivables and payables between/among funds

Answer 53

Due to XXX | Due from XXX

Question 54

Eliminate governmental funds' interfund transfers

Answer 54

Transfers in | Transfers Out