ACCT 4421 Ch 9-10 SB UPDATED
ACTUAL Exam Questions and CORRECT
Answers
The Bureau of the Census defines ______ as "all organized local entities (other than counties,
municipalities, townships, or school districts) authorized by state law to provide only one or a
limited number of designated functions, and with sufficient administrative and fiscal autonomy
to qualify as separate governments." - CORRECT ANSWER - special districts
A primary government can be a special purpose government that has a separately elected
governing body and is which of the following? - CORRECT ANSWER - - legally separate
- fiscally independent of other state and local governments
The GASB defines a financial reporting entity as ______. - CORRECT ANSWER - the
primary government and organizations for which the primary government is financially
accountable
A primary government is ______ for another organization if it appoints a voting majority of the
organization's government board and (1) it is able to impose its will on the organization or (2)
there is a potential for the organization to provide specific financial benefits to or imposes
specific financial burdens on the primary government. - CORRECT ANSWER -
financially accountable
A legally separate organization for which the elected officials of the primary government are
financially accountable is defined as a ______. - CORRECT ANSWER - component unit
True or false: Special districts include counties, municipalities, townships, and school districts. -
CORRECT ANSWER - False
[Reason: Special districts include organized local entities OTHER THAN counties,
municipalities, townships, or school districts.]
, A state government or a general purpose local government is called a(n) ______. - CORRECT
ANSWER - primary government.
When financial information of a component unit is reported in one or more columns separate
from the financial data of the primary government, it is referred to as ______ presentation. -
CORRECT ANSWER - discrete
The GASB defines a(n) ______ entity as the primary government and organizations for which
the primary government is financial accountable. - CORRECT ANSWER - financial
reporting
The ability of the primary government to impose its will on an organization exists if ______. -
CORRECT ANSWER - the primary government can significantly influence programs,
projects, or activities of the organization
Examples of component units of primary governments include which of the following? -
CORRECT ANSWER - - not-for-profit organizations
- nonprimary government
- for-profit firms
A government might enter into a ______ to pool resources and share the risk and rewards of a
project. - CORRECT ANSWER - joint venture
Who has the greatest need for interim financial reports?
- Legislative branch members
- Government administrators
- The general public - CORRECT ANSWER - Government administrators
Major component unit supporting information is required to be provided in the reporting entity's
basis financial statements using discrete presentation by which of the following? - CORRECT
ACTUAL Exam Questions and CORRECT
Answers
The Bureau of the Census defines ______ as "all organized local entities (other than counties,
municipalities, townships, or school districts) authorized by state law to provide only one or a
limited number of designated functions, and with sufficient administrative and fiscal autonomy
to qualify as separate governments." - CORRECT ANSWER - special districts
A primary government can be a special purpose government that has a separately elected
governing body and is which of the following? - CORRECT ANSWER - - legally separate
- fiscally independent of other state and local governments
The GASB defines a financial reporting entity as ______. - CORRECT ANSWER - the
primary government and organizations for which the primary government is financially
accountable
A primary government is ______ for another organization if it appoints a voting majority of the
organization's government board and (1) it is able to impose its will on the organization or (2)
there is a potential for the organization to provide specific financial benefits to or imposes
specific financial burdens on the primary government. - CORRECT ANSWER -
financially accountable
A legally separate organization for which the elected officials of the primary government are
financially accountable is defined as a ______. - CORRECT ANSWER - component unit
True or false: Special districts include counties, municipalities, townships, and school districts. -
CORRECT ANSWER - False
[Reason: Special districts include organized local entities OTHER THAN counties,
municipalities, townships, or school districts.]
, A state government or a general purpose local government is called a(n) ______. - CORRECT
ANSWER - primary government.
When financial information of a component unit is reported in one or more columns separate
from the financial data of the primary government, it is referred to as ______ presentation. -
CORRECT ANSWER - discrete
The GASB defines a(n) ______ entity as the primary government and organizations for which
the primary government is financial accountable. - CORRECT ANSWER - financial
reporting
The ability of the primary government to impose its will on an organization exists if ______. -
CORRECT ANSWER - the primary government can significantly influence programs,
projects, or activities of the organization
Examples of component units of primary governments include which of the following? -
CORRECT ANSWER - - not-for-profit organizations
- nonprimary government
- for-profit firms
A government might enter into a ______ to pool resources and share the risk and rewards of a
project. - CORRECT ANSWER - joint venture
Who has the greatest need for interim financial reports?
- Legislative branch members
- Government administrators
- The general public - CORRECT ANSWER - Government administrators
Major component unit supporting information is required to be provided in the reporting entity's
basis financial statements using discrete presentation by which of the following? - CORRECT
