Chapter 2

Question 1

Can be state government, general purpose local government (city, county) or special purpose government (school district).

Answer 1

Primary Government

Question 2

Legally separate organizations for which elected officials of primary government are financially accountable.

Answer 2

Component Units

Question 3

Financial information of the component unit is presented in a column, apart from the primary government and not included in the totals reported for the primary government.

Answer 3

Discrete Presentation

Question 4

Reported as though they were funds of the primary government. It is appropriate when the component unit is so intertwined with the primary government that they are substance the same entity.

Answer 4

Blending

Question 5

If a special-purpose government has both governmental and business-type activities the must present which financial statements?

Answer 5

Government-wide and fund

Question 6

If a special purpose government has only business type activities they should report which statements?

Answer 6

Those required for enterprise funds.

MD&A
Statement of net position
Statement of revenues, expenses, and changes in net position
Statement of cash flows 
Notes to financial statements
Rsi

Question 7

Special purpose governments that only have one governmental program should use which statements?

Answer 7

They can combine the fund and government-wide statements using separate columns.

Question 8

To determine if a fund is major?

Answer 8

General Fund is always considered a major fund.

For other governmental funds both must exist

1) total assets, liabilities, revenues, or expenditures of that individual governmental fund constitute 10% of the total for the governmental funds category, and
2) total assets, liabilities, revenues, or expenditures of that individual governmental fund are 5% of the total of the governmental and enterprise categories, combined.

Question 9

Three major sections of the of the CAFR

Answer 9

Introductory, financial, and statistical sections

Question 10

Statement of net position
statement of activities

Economic resources measurement focus and the accrual basis

Answer 10

Government-wide financial statements

Question 11

Balance sheet
Statement of revenues, expenditures, and changes in fund balances

Presented using the current financial resources measurement focus and modified accrual basis

Answer 11

Government fund statements

Question 12

Statement of net position (or balance sheet)

Statement of revenues and expenses and changes in fund net position

Statement of cash flows

Prepared using the economic resources measurement focus and accrual basis

Answer 12

Proprietary fund statements

Question 13

Statement of fiduciary net position and the statement of changes in fiduciary net position

Prepared using the economic resources measurement focus and accrual basis

Answer 13

Fiduciary fund statements

Question 14

What is the difference between assets and liabilities?

Answer 14

Net position

Reported in 3 categories