F10

Question 1

Integrated approach

Answer 1

1. MD&A
2. Government wide statements reconcile and consolidate fund financial statements
3. Notes to financial statements
4. Required supplementary info other that MD&A

Question 2

Required reporting

Answer 2

1. MD&A
2. Government wide financial statements
3. Fund Financial statements - major funds shown individually & nonmajor funds shown in total
4. Notes
5. Required supplementary information(RSI) other than MD&A

Question 3

Government wide financial statements

Answer 3

Statement of Net Position

Statement of Activities

Question 4

Governmental fund financial statements

Answer 4

Balance sheet

Statement of revenues, expenditures, and changes in fund balance

Question 5

Proprietary fund financial statements

Answer 5

Statement of Net Position

Statement of revenues, expenses, and changes in fund net position

Statement of cash flows

Question 6

Fiduciary fund financial statements

Answer 6

Statement of fiduciary net position

Statement of changes in fiduciary net position

Question 7

What’s in notes

Answer 7

Pension shit

Budgetary comparison schedules

Shit about infrastructure

Other optional shit

Question 8

Comprehensive Annual Financial Report (CAFR)

Answer 8

Introductory section - unaudited

Basic Financial statements and required supplementary info - audited

Statistical section - unaudited

Question 9

Introductory section of CAFR

Answer 9

Letter of transmittal

Organizational chart

List of principal officers

Question 10

Basic financial statement and supplementary section of CAFR

Answer 10

MD&A

Government wide financial statements

Fund Financial statements

Notes

Required supplementary info

Question 11

Statistical section of CAFR

Answer 11

10 years of selected financial data

10 years of economic data

Other

Question 12

Special purpose local governments

Answer 12

Separately elected by governing body

Legally separate

Fiscally independent of other state and local governments

Question 13

Component unit blended vs discrete presentation

Answer 13

Blended

• Board of component unit is the same as primary government

or

• Component unit serves the primary government exclusively
• Discrete is the default method if the above isn’t true*

Question 14

Fiscal accountability vs operational accountability

Answer 14

Operations is for government wide and fiscal is for fund

Question 15

Government wide financial statements of net position format

Answer 15

Assets and deferred outflows of resources minus liabilities and deferred inflows of resources

Question 16

Components of Net position

Answer 16

Net investments in capital assets

Restricted assets

Unrestricted assets

Question 17

Net investments in capital assets

Answer 17

All capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings.

Question 18

Restricted assets for government wide statement of net position

Answer 18

Restricted assets reduced by liabilities and deferred inflows of resources related to assets

Question 19

Treatment of interfund receivables and payables

Answer 19

Eliminate

Question 20

Construction period interest

Answer 20

Reported as interest expense on government wide financial statements and fund financial statements record it as expenditures

Question 21

Program approach for statement of activities

Answer 21

Expense or revenue is expensed into 3 categories

Governmental activities
Business activities
Component units

Question 22

Program revenues

Answer 22

Exchange revenue: when goods or services are transferred, king of like enterprise fees

Non exchange rev: government gives or receives without doing anything for it or what it does is not equal

Question 23

Program revenue category types

Answer 23

Charges for services

Operating grants & contributions

Capital grants & contributions

Question 24

How statement of activities is shown

Answer 24

Column for government activities then a column for business type activities followed by the total for both and component units after

Question 25

Statement of net position governmental and business type activities

Answer 25

Separated like statement of activities

Question 26

Modified approach when government allows to not report depreciation expense if

Answer 26

Government manages the assets using an asset management system There are documents that say the assets are being preserved at or above condition established by the government

Question 27

At what amount do you capitalize property

Answer 27

The lower cost or market

Question 28

Major Fund rules

Answer 28

Must meet 10% test and 5% test to be considered major fund

Question 29

10% test

Answer 29

Greater than 10% Governmental and enterprise are separate columns

Question 30

5% test

Answer 30

Greater than 5% and the columns for governmental and enterprise are combined

Question 31

Proprietary fund Statement of Cash Flows - Operating activities

Answer 31

1. cash inflows from sales of goods and services 2. Cash outflows to suppliers or employees 3. cash inflows from interfund reimbursements and exchanges including payments in lieu of taxes 4. cash transactions not meeting the definition of the other categories

Question 32

Proprietary fund Statement of Cash Flows - Investing activities

Answer 32

1. Cash inflows and outflows associated with loans to others | 2. Cash inflows and outflows associated with equity transactions

Question 33

Proprietary fund statement of cash flows - capital and related financing activities

Answer 33

1. Cash flows from issuing debt associated with capital assets including interest expense 2. Cash inflows from capital grants 3. Cash inflows from contribution activity associated with capital assets 4. Cash activity related to special assessments associated with capital assets

Question 34

Proprietary funds statement of cash flows - noncapital financing activities

Answer 34

1. Cash flows from issuing debt for noncapital purposes including interest expense 2. Cash receipts from grants or subsidies 3. Cash received from property taxes not restricted for capital use 4. Operating transfers

Question 35

Fiduciary statement of net position

Answer 35

Assets and deferred outflows of resources minus liabilities and deferred inflows or resources

Question 36

Governmental statement of net position

Answer 36

Assets and deferred outflows of resources equals liabilities and deferred inflows of resources

Question 37

Reconciliation of Government fund Balance sheet to Government wide statement of position - measurement focus difference

Answer 37

1. add non-current capital assets 2. subtract related accumulated depreciation 3. Subtract non-current liabilities - long term debt

Question 38

Reconciliation of Government fund Balance sheet to Government wide statement of position - for difference in basis of accounting

Answer 38

1. eliminate deferred inflows recognized revenues 2. subtract accrued liabilities for interest payable 3. add internal service fund net position

Question 39

Reconciliation of Governmental funds statement of revenues, expenditures, and changes in fund balance to Government wide statement of activities - measurement focus difference

Answer 39

1. add capital outlay expenditures 2. add principle payment on debt 3. subtract net book values of capital assets disposed during the period 4. subtract debt proceeds show for other financing sources

Question 40

Reconciliation of Governmental funds statement of revenues, expenditures, and changes in fund balance to Government wide statement of activities - difference in basis of accounting

Answer 40

1. add recognized revenues that are measurable and unavailable 2. accrue interest expense 3. record depreciation expense 4. add internal service fund change in net position