CPFO Accounting Examination A+ Answers

CPFO Accounting Examination A+ Answers 1. Which of the following would be reported as a deferred item in the governmental fund financial statements, but not in the government-wide financial statements? A. Unavailable revenue B. Unearned revenue C. Deferred charge - difference between net carrying amount of refunded debt and reacquisition price D. All of the above E. None of the above - Correct Answer-[Correct response = A] The deferral of revenue because it is unavailable is unique to financial statements prepared using the current financial resources measurement focus (governmental funds). Source: 2021 eGAAFR 2.18 Exercises 2. Which of the following accounts would appear in the statement of financial position for governmental funds? A. Discount on long-term debt B. Bonds payable C. Both A and B D. Neither A nor B - Correct Answer-[Correct response = D] For governmental funds, cash is the only account on the statement of financial position affected by the issuance of long-term debt. Source: 2021 eGAAFR 2.18 Exercises 3. Which of the following accounts would appear in the statement of financial position for governmental activities? A. Discount on long-term debt B. Bonds payable C. Both A and B D. Neither A nor B - Correct Answer-[Correct response = C] For governmental activities (economic resources measurement focus/accrual basis of accounting), the issuance of long-term debt primarily affects the statement of financial position. Source: 2021 eGAAFR 2.18 Exercises