CPA Exam: FAR - Governmental
Accounting fully solved to pass
What fund(s) use modified accrual basis for timing purposes? - correct answer ✔✔All
governmental funds (General, capital projects, debt service, permanent, special revenue)
What fund(s) use regular accrual basis for timing purposes? - correct answer ✔✔1. Proprietary
Funds (enterprise & internal service)
2. Fiduciary Funds
What qualifies a fund as a major vs a non-major fund? - correct answer ✔✔If it's assets make
up at least 10% of that fund's total assets.
remember, it's 10% of that specific fund, not of all assets across the funds (governmental,
proprietary, fiduciary)
What is the order to how the financial statement information is presented in the CAFR? - correct
answer ✔✔1. Auditor's Report
2. MD&A
3. Government-wide financial statements
- Gov't wide Statement of Net Position
- Gov't wide Statement of Activities
4. Fund Financial Statements
General:
-Balance sheet
Accounting fully solved to pass
What fund(s) use modified accrual basis for timing purposes? - correct answer ✔✔All
governmental funds (General, capital projects, debt service, permanent, special revenue)
What fund(s) use regular accrual basis for timing purposes? - correct answer ✔✔1. Proprietary
Funds (enterprise & internal service)
2. Fiduciary Funds
What qualifies a fund as a major vs a non-major fund? - correct answer ✔✔If it's assets make
up at least 10% of that fund's total assets.
remember, it's 10% of that specific fund, not of all assets across the funds (governmental,
proprietary, fiduciary)
What is the order to how the financial statement information is presented in the CAFR? - correct
answer ✔✔1. Auditor's Report
2. MD&A
3. Government-wide financial statements
- Gov't wide Statement of Net Position
- Gov't wide Statement of Activities
4. Fund Financial Statements
General:
-Balance sheet
