Chapter 9

Question 1

What is the mnemonic for change in net position for governmental activities in the govt-wide financials?

Answer 1

G change in Governmental fund balance
O Other financing sources
E Expenditure-capital outlay
S internal Service fund net income

B Basis of accounting
A Additional Accrued
R Revenues
E Expenses

Question 2

In what year are cash contributions and unconditional pledges recognized?

Answer 2

Cash contributions and unconditional pledges are recognized as contribution revenue in the year in which the cash or pledge was received.

Question 3

What are the three required financial stmts for non-profit organizations?

Answer 3

1. Stmt of Financial Position
2. Stmt of Activities
3. Stmt of Cash Flows

Question 4

What is the focus of government-wide financial statements?

Answer 4

Focus is the governments responsibility to report the extent to which they have met their operating objectives effectively and efficiently, using all resources available for that purpose, and the extent to which they can continue to meet their objectives for the future

Question 5

What are the three sections of the comprehensive audit financial report (CAFR)?

Answer 5

1. an intro section
2. basic f/s along with any other required supplementary info
3. statistical section

Question 6

what is the joint presentation of government-wide and fund financial stmts and appropriate reconciliation called??

Answer 6

the integrated approach

Question 7

Reporting the combining fund financial statements is required for non-major individual fund f/s.

TRUE/FALSE?

Answer 7

FALSE. A gov. may report combining non-major individual fund financial stmts in the supplementary information. Reporting the combining fund financial stmts is optional.

Question 8

Which govt-wide activity associated with operational accountability should NOT be included in the govt-wide f/s?

fiduciary, business-type, component unit, governmental

Answer 8

Fiduciary activities should be excluded from government-wide measures of operational accountability since fiduciary resources cannot be used to support the govt’s programs or other services.

Question 9

What are the three categories that a city will report its net position in its government-wide f/s?

Answer 9

net investment in cap assets, restricted, unrestricted