F10 - M3 - Form and Content of the Comprehensive Annual Financial Report

Question 1

Funds have financial statements prepared using their specific accounting method in order to better demonstrate compliance with government leaders’ decisions (_______ accountability);

Answer 1

fiscal accountability

Question 2

the government- wide financial statements display achievement of operating objectives (________accountability).

Answer 2

operational accountability

Question 3

The sequence of financial reporting presentation is:

Answer 3

1) management’s discussion and analysis (MD&A). 2) Government-wide financial statements and fund financial statements follow then 3) Notes to the financial statements 4) RSI and other supplementary information.

Question 4

The financial reporting entity is the ______ entity and all _________ that should be included with it.

Answer 4

primary government entity and all component units

Question 5

_________ governments (e.g., states, counties, and cities) are almost always considered a primary government and therefore have their own financial statements.

Answer 5

General purpose governments

Question 6

A special purpose local government will be treated as a primary governmental entity (3) criteria

Answer 6

separately elected leaders, is a legally separate entity, and is fiscally independent

Question 7

Component units do not meet the SELF criteria and may be blended with the primary government if they are “intertwined” with it (the component unit is (3)

Answer 7

1) not a separate legal entity, 2) the boards of the component unit and primary government are substantially the same, or 3) the component unit serves the primary government exclusively).

Question 8

A __________ is required if the component is legally separate but financially accountable to the primary government and does not meet any of the restrictive criteria associated with blending

Answer 8

discrete presentation

Question 9

Most component units should use ______ presentation.

Answer 9

discrete