M7 - Notes and Supplementary Information

Question 1

Budgetary comparisons must be presented on the same basis of accounting as the adopted budget. (true or false)

Answer 1

True

Budgetary comparisons should be accompanied by information (either in a separate schedule or in notes to RSI) that reconciles budgetary information to GAAP information.

Question 2

Governmental funds use a budget for control and comparison purposes. Since comparisons of budgeted and actual amounts are made, the basis for preparing the budget should be the same as the fund’s basis of accounting. The ____________basis is used in accounting for governmental funds and should, therefore, be used in preparing governmental fund budgets.

Answer 2

Modified accrual

Question 3

The schedule of actuarially determined contributions displayed in the required supplementary information should be presented to the extent available (for a minimum of 10 years). (true or false)

Answer 3

True

If the entity has only been in existence for less than 10 years, you would select how many years they have been in existence on the answer.

Question 4

What is the minimum budgetary information required to be reported in the Basic Financial Statements- and Management’s Discussion and Analysis-for state and local governments?

Answer 4

A schedule showing the

• original budget,
• the final appropriations budget,
• and actual inflows, outflows, and balances on a budgetary basis.

Question 5

Reporting the combining fund financial statements is optional (true or false)

Answer 5

true

Question 6

Management’s Discussion and Analysis is a required component of the required supplementary information preceding the basic financial statements for general purpose governments. (true or false)

Answer 6

True

It is placed BEFORE not after the basic F/S.

Question 7

F/S prepared in accordance with the provisions of GASB 34 will include: government-wide F/S prepared using accrual basis of accounting, fund F/S, notes to the F/S and required supplementary information that encompasses a letter titled “management’s discussion and analysis,” and budget versus actual comparisons including display of the originally adopted budget and the changes that resulted in the final amended budget. (true or false)

Answer 7

true

Question 8

Presentation of the computed variance between the final amended budget and actual results is OPTIONAL, not required in the budgetary comparison schedule. (true or false)

Answer 8

True

Question 9

Budgetary comparison schedules should be presented as required supplementary information or in the basic financial statements for the general fund and for each major special revenue fund that has a legally adopted annual budget. (true or false)

Answer 9

true

Question 10

As part of their generic disclosures, governments would report a description of the modified approach for reporting infrastructure, if used. (true or false)

Answer 10

True