ACCY 407 Exam 1 Review | 100% Correct
Answers | Verified | Latest 2024 Version
The basic financial statements of a not-for-profit include all of the following except
a. Statement of activities.
b. Statement of financial position.
c. Statement of cash flows.
d. Statement of changes in functional expenses. - ✔✔d
Which of the following would typically not be included in the introductory section of a comprehensive
annual financial report?
a. Summary of the government's current financial position and results of financial activities.
b. Title and contents page.
c. Letter of transmittal.
d. A description of the government. - ✔✔a
A statistical section should be included in
a. The notes to the financial statements.
b. A comprehensive annual financial report (CAFR).
c. Required supplementary information, other than MD&A.
d. The basic financial statements. - ✔✔b
Which of the following should be included in the financial section of a comprehensive annual financial
report?
a. A description of the government.
b. Tables and charts showing demographic and economic data.
,c. Transmittal letter.
d. The basic financial statements, including notes thereto. - ✔✔d
Which of the following is not classified as a support activity reported by not-for-profit entities?
a. Management expenses.
b. Fund-raising expenses.
c. General expenses of operating the not-for-profit entity.
d. Program expenses. - ✔✔d
In addition to financial statements and notes, the GASB requires governments to provide information on
service efforts and accomplishments (SEA) in their reports to the public.
a. True
b. False - ✔✔b
The governmental fund financial statements are intended to report on fiscal accountability.
a. True
b. False - ✔✔a
Government-wide financial statements are prepared using the accrual basis of accounting.
a. True
b. False - ✔✔a
Similar to for-profit entities, net income serves as a good measure of a government's performance.
a. True
b. False - ✔✔b
, A difference in the financial reporting objectives for government entities and not-for-profit entities is
that government entities report on compliance with laws, regulations, and rules that impact financial
reports.
a. True
b. False - ✔✔a
A major governmental fund is one that has one or more elements (e.g., assets, liabilities, revenues, or
expenditures) that is at least:
a. Ten percent of the corresponding element(s) of total governmental funds and 10 percent of the
corresponding element(s) of total governmental and enterprise funds combined.
b. Ten percent of the corresponding element(s) of total governmental funds and 5 percent of the
corresponding element(s) of total governmental and enterprise funds combined.
c. Five percent of the corresponding element(s) of total governmental funds and five percent of the
corresponding element(s) of total governmental and enterprise funds combined.
d. Five percent of the corresponding element(s) of total governmental funds and 10 percent of the
corresponding element(s) of total governmental and enterprise funds combined. - ✔✔b
Where should a deferred inflow of resources be reported on the financial statements?
a. After the liabilities section on the statement of net position.
b. The liabilities section on the statement of net position.
c. It would be reported as a note disclosure in the financial statements because it is deferred.
d. After the general revenues on the statement of activities. - ✔✔a
The activities of a water utility department, which offers its services to the general public on a user
charge basis, should be accounted for in
a. A special revenue fund.
b. The General Fund.
c. An enterprise fund.
Answers | Verified | Latest 2024 Version
The basic financial statements of a not-for-profit include all of the following except
a. Statement of activities.
b. Statement of financial position.
c. Statement of cash flows.
d. Statement of changes in functional expenses. - ✔✔d
Which of the following would typically not be included in the introductory section of a comprehensive
annual financial report?
a. Summary of the government's current financial position and results of financial activities.
b. Title and contents page.
c. Letter of transmittal.
d. A description of the government. - ✔✔a
A statistical section should be included in
a. The notes to the financial statements.
b. A comprehensive annual financial report (CAFR).
c. Required supplementary information, other than MD&A.
d. The basic financial statements. - ✔✔b
Which of the following should be included in the financial section of a comprehensive annual financial
report?
a. A description of the government.
b. Tables and charts showing demographic and economic data.
,c. Transmittal letter.
d. The basic financial statements, including notes thereto. - ✔✔d
Which of the following is not classified as a support activity reported by not-for-profit entities?
a. Management expenses.
b. Fund-raising expenses.
c. General expenses of operating the not-for-profit entity.
d. Program expenses. - ✔✔d
In addition to financial statements and notes, the GASB requires governments to provide information on
service efforts and accomplishments (SEA) in their reports to the public.
a. True
b. False - ✔✔b
The governmental fund financial statements are intended to report on fiscal accountability.
a. True
b. False - ✔✔a
Government-wide financial statements are prepared using the accrual basis of accounting.
a. True
b. False - ✔✔a
Similar to for-profit entities, net income serves as a good measure of a government's performance.
a. True
b. False - ✔✔b
, A difference in the financial reporting objectives for government entities and not-for-profit entities is
that government entities report on compliance with laws, regulations, and rules that impact financial
reports.
a. True
b. False - ✔✔a
A major governmental fund is one that has one or more elements (e.g., assets, liabilities, revenues, or
expenditures) that is at least:
a. Ten percent of the corresponding element(s) of total governmental funds and 10 percent of the
corresponding element(s) of total governmental and enterprise funds combined.
b. Ten percent of the corresponding element(s) of total governmental funds and 5 percent of the
corresponding element(s) of total governmental and enterprise funds combined.
c. Five percent of the corresponding element(s) of total governmental funds and five percent of the
corresponding element(s) of total governmental and enterprise funds combined.
d. Five percent of the corresponding element(s) of total governmental funds and 10 percent of the
corresponding element(s) of total governmental and enterprise funds combined. - ✔✔b
Where should a deferred inflow of resources be reported on the financial statements?
a. After the liabilities section on the statement of net position.
b. The liabilities section on the statement of net position.
c. It would be reported as a note disclosure in the financial statements because it is deferred.
d. After the general revenues on the statement of activities. - ✔✔a
The activities of a water utility department, which offers its services to the general public on a user
charge basis, should be accounted for in
a. A special revenue fund.
b. The General Fund.
c. An enterprise fund.
