CGFM - Exam 2 Section 2 CH 3
questions well answered to pass
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
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 under both measurement focuses. Remember that CFRS mostly hit operating statements,
but ER needs to be assets/liabilities
Converting entry:
Dr: Capital asset - vehicles
Cr: Capital outlay - vehicles
Converting from CFRS/Modified accrual from funds to ER/accrual accounting on government-
wide statements:
Proceeds from bond issues to long term bond obligations - correct answer ✔✔Ask yourself
what the original entry would be under both measurement focuses. Remember that CFRS
mostly hit operating statements, but ER needs to be assets/liabilities
Converting entry:
questions well answered to pass
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
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 under both measurement focuses. Remember that CFRS mostly hit operating statements,
but ER needs to be assets/liabilities
Converting entry:
Dr: Capital asset - vehicles
Cr: Capital outlay - vehicles
Converting from CFRS/Modified accrual from funds to ER/accrual accounting on government-
wide statements:
Proceeds from bond issues to long term bond obligations - correct answer ✔✔Ask yourself
what the original entry would be under both measurement focuses. Remember that CFRS
mostly hit operating statements, but ER needs to be assets/liabilities
Converting entry:
