CGFM - Exam 2 Section 2 CH 3
Questions & Answers (Grade A+)
Government-wide financial reporting overview -
correct answer ✅Reported in 2 columns as governmental
activities and business-type activities
- Internal service funds are mostly governmental activities, unless
their primary customers are enterprise funds
- Business type activities are generally proprietary fund activities
Fiduciary funds are not reported government-wide
Component units are mostly presented discreetly in separate
columns
MD&A is required preceding the financial statements
Statement of net position and Statement of Activities are required
Components of Management Discussion and Analysis (MD&A) -
correct answer ✅Discussion of Basic financial statements
Condensed financial information
, CGFM - Exam 2 Section 2 CH 3
Questions & Answers (Grade A+)
Analysis of financial position and results of operations
Analysis of balances and transactions of individual funds
analysis of significant variations between the original and final
budget
description of significant capital assets and long-term debt activity
during the year
If a government uses the modified approach for infrastructure
descriptions of currently known facts, conditions or decisions
expected to influence financial position or results of operation
Converting from CFRS/Modified accrual from funds to ER/accrual
accounting on government-wide statements:
Capital Outlays to Capital Assets -
correct answer ✅Ask yourself what the original entry would be
Questions & Answers (Grade A+)
Government-wide financial reporting overview -
correct answer ✅Reported in 2 columns as governmental
activities and business-type activities
- Internal service funds are mostly governmental activities, unless
their primary customers are enterprise funds
- Business type activities are generally proprietary fund activities
Fiduciary funds are not reported government-wide
Component units are mostly presented discreetly in separate
columns
MD&A is required preceding the financial statements
Statement of net position and Statement of Activities are required
Components of Management Discussion and Analysis (MD&A) -
correct answer ✅Discussion of Basic financial statements
Condensed financial information
, CGFM - Exam 2 Section 2 CH 3
Questions & Answers (Grade A+)
Analysis of financial position and results of operations
Analysis of balances and transactions of individual funds
analysis of significant variations between the original and final
budget
description of significant capital assets and long-term debt activity
during the year
If a government uses the modified approach for infrastructure
descriptions of currently known facts, conditions or decisions
expected to influence financial position or results of operation
Converting from CFRS/Modified accrual from funds to ER/accrual
accounting on government-wide statements:
Capital Outlays to Capital Assets -
correct answer ✅Ask yourself what the original entry would be
