Governmental NFP Exam 1 Questions and
Answers Verified by Experts
Which are governmental funds? Debt Service and Capital Project
Fiduciary fund financial statements include the statement of fiduciary net position and
statement of changes in fiduciary Net position
In addition to the government-wide statements, governments are required to prepare fund
financial statements for which of the following category of funds?
A. Proprietary funds
B. Governmental type funds
C. Fiduciary funds
D. All of the above All of the Above
Which of the following is true regarding the Comprehensive Annual Financial Report?
A) The CAFR has three main sections: introductory, financial, and statistical.
,B) Required supplementary Information includes a Budgetary Comparison Schedule for the
General Fund and all major special revenue funds that have a legally adopted annual budget
(unless a statement is prepared).
C) Both of the above.
D) Neither of the above. Both of the above (A and B)
What is true regarding the government-wide statements? The government-wide statements
include a Statement of Net Position and a statement of Activities
5. Which of the following is false regarding the financial reporting entity of a state or local
government?
A) Many component units are discretely presented, rather than blended.
B) Only a primary government is reported in the government-wide statements.
C) A school district can be a primary government.
D) Both B and C are false Only a primary government is reported in the government-
wide statements
Which of the following is true regarding the composition of the Comprehensive Annual
Financial Report (CAFR)?
, A) The CAFR is to include both blended and discretely presented component units.
B) The CAFR is required in order to be in conformity with Generally Accepted Accounting
Principles (GAAP).
C) The CAFR contains four major sections: introductory, financial, supplementary, and
statistical.
D) All of the above are true. The CAFR is to include both blended and discretely
presented component units
Which of the following is included in Required supplementary Information (RSI)?
A) Management's Discussion and Analysis (MD&A).
B) Budgetary Comparison Schedule.
C) The Schedule of Funding Progress and Schedule of Employer Contributions when the
government reports a pension trust fund.
D) All of the above. All of the above
8. Which of the following is true regarding the government-wide Statement of Activities?
A) The government-wide Statement of Activities may reflect expenses either by function
(general government, public safety, etc.) or by object or natural classification (salaries, supplies,
etc.).
Answers Verified by Experts
Which are governmental funds? Debt Service and Capital Project
Fiduciary fund financial statements include the statement of fiduciary net position and
statement of changes in fiduciary Net position
In addition to the government-wide statements, governments are required to prepare fund
financial statements for which of the following category of funds?
A. Proprietary funds
B. Governmental type funds
C. Fiduciary funds
D. All of the above All of the Above
Which of the following is true regarding the Comprehensive Annual Financial Report?
A) The CAFR has three main sections: introductory, financial, and statistical.
,B) Required supplementary Information includes a Budgetary Comparison Schedule for the
General Fund and all major special revenue funds that have a legally adopted annual budget
(unless a statement is prepared).
C) Both of the above.
D) Neither of the above. Both of the above (A and B)
What is true regarding the government-wide statements? The government-wide statements
include a Statement of Net Position and a statement of Activities
5. Which of the following is false regarding the financial reporting entity of a state or local
government?
A) Many component units are discretely presented, rather than blended.
B) Only a primary government is reported in the government-wide statements.
C) A school district can be a primary government.
D) Both B and C are false Only a primary government is reported in the government-
wide statements
Which of the following is true regarding the composition of the Comprehensive Annual
Financial Report (CAFR)?
, A) The CAFR is to include both blended and discretely presented component units.
B) The CAFR is required in order to be in conformity with Generally Accepted Accounting
Principles (GAAP).
C) The CAFR contains four major sections: introductory, financial, supplementary, and
statistical.
D) All of the above are true. The CAFR is to include both blended and discretely
presented component units
Which of the following is included in Required supplementary Information (RSI)?
A) Management's Discussion and Analysis (MD&A).
B) Budgetary Comparison Schedule.
C) The Schedule of Funding Progress and Schedule of Employer Contributions when the
government reports a pension trust fund.
D) All of the above. All of the above
8. Which of the following is true regarding the government-wide Statement of Activities?
A) The government-wide Statement of Activities may reflect expenses either by function
(general government, public safety, etc.) or by object or natural classification (salaries, supplies,
etc.).
