BLUE BOOK PRACTICE EXERCISES: 1,3,4,5,6,9,13,17 QUESTIONS AND CORRECT ANSWERS

BLUE BOOK PRACTICE EXERCISES:
1,3,4,5,6,9,13,17 QUESTIONS AND
CORRECT ANSWERS
WhichA2ofA2theA2followingA2bestA2describesA2theA2roleA2thatA2accounting,A2financialA2repor
ting,A2andA2theA2financialA2statementA2auditA2playA2forA2stateA2andA2localA2governments?
A2A.A2ComprehensiveA2frameworkA2ofA2internalA2controlA2B.A2InformationalA2infrastructure
A2ofA2publicA2financeA2C.A2Public-sectorA2performanceA2managementA2systemA2-A2Ans--B


WhoA2isA2primarilyA2responsibleA2forA2accounting?
A2A.A2GoverningA2bodyA2B.A2IndependentA2auditorA2C.A2ManagementA2-A2Ans--C


WhoA2isA2primarilyA2responsibleA2forA2financialA2reporting?
A2A.A2GoverningA2bodyA2B.A2IndependentA2auditorA2C.A2ManagementA2-A2Ans--C


WhichA2bestA2describesA2theA2relationshipA2betweenA2accountingA2andA2financialA2reporti
ng?A2A.A2InterchangeableA2B.A2ComplementaryA2butA2distinctA2C.A2UnrelatedA2-A2Ans--B

WhatA2determinesA2theA2content/formatA2ofA2internalA2financialA2reports?
A2A.A2GAAPA2B.A2Management'sA2needsA2C.A2BothA2-A2Ans--B


WhatA2typicallyA2determinesA2content/
formatA2ofA2generalA2purposeA2externalA2financialA2reports?
A2A.A2GAAPA2B.A2Management'sA2needsA2C.A2BothA2-A2Ans--A


WhichA2communicationA2requiresA2thatA2anA2itemA2meetA2theA2definitionA2ofA2aA2financialA
2statementA2element?A2A.A2DisplayA2B.A2DisclosureA2C.A2SupportingA2InfoA2-A2Ans--A


WhichA2mayA2beA2aA2reportingA2unitA2forA2whichA2financialA2statementA2elementsA2areA2di
splayed?
A2A.A2IndividualA2governmentA2B.A2TwoA2orA2moreA2governmentsA2C.A2PartA2ofA2aA2govern
mentA2D.A2TwoA2orA2moreA2partsA2ofA2aA2governmentA2E.A2AllA2ofA2theA2aboveA2-A2Ans--E

WhichA2communicationA2focusesA2onA2operational,A2economic,A2orA2historicalA2context?
A2A.A2DisclosureA2B.A2SupportingA2infoA2C.A2BothA2-A2Ans--B


WhichA2isA2anA2essentialA2characteristicA2ofA2accountingA2data?
A2A.A2PrecisionA2B.A2ComparabilityA2C.A2BothA2-A2Ans--B


WhoA2isA2ultimatelyA2responsibleA2forA2aA2government'sA2financialA2reporting?
A2A.A2AuditorA2B.A2ManagementA2C.A2GoverningA2bodyA2-A2Ans--C

, GAAPA2providesA2authoritativeA2guidanceA2forA2whichA2ofA2theA2following?
A2A.A2InternalA2financialA2reportingA2B.A2SpecialA2purposeA2externalA2FRA2C.A2GeneralA2pu
rposeA2externalA2FRA2D.A2AllA2-A2Ans--C

WhichA2isA2notA2properlyA2aA2primaryA2userA2ofA2SLGA2financialA2statements?
A2A.A2Investors/creditorsA2B.A2ManagersA2C.A2Legislative/oversightA2bodiesA2D.A2NoneA2-
A2Ans--BA2(managementA2isA2notA2aA2primaryA2user)


WhichA2isA2alwaysA2issuedA2inA2GASBA2dueA2process?
A2A.A2ITCA2B.A2DMA2C.A2PVA2D.A2NoneA2-A2Ans--D


WhichA2hasA2theA2highestA2GAAPA2hierarchyA2status?
A2A.A2NCGAA2statementA2B.A2GASBA2implementationA2guideA2C.A2AICPAA2SOPA2(cleared
A2byA2GASB)A2D.A2AICPAA2issuesA2paperA2-A2Ans--A


WhichA2isA2notA2coveredA2byA2AICPAA2CodeA2sectionsA21.310.001A2orA21.320.001?
A2A.A2GASBA2implementationA2guideA2B.A2GASBA2statementsA2C.A2WidelyA2recognizedA2p
racticeA2D.A2AllA2coveredA2-A2Ans--CA2(widelyA2recognizedA2practiceA2notA2inA2hierarchy)

TrueA2statementA2regardingA2nonauthoritativeA2literature?
A2A.A2FollowA2NFPA2ifA2noA2Cat.A2A/
BA2GAAPA2B.A2IfA210A2govtsA2follow,A2it'sA2prevalentA2C.A2JournalA2guidanceA2neverA2ifA2co
nflictsA2D.A2MustA2beA2consistentA2withA2GASBA2conceptsA2E.A2CA2andA2DA2-A2Ans--
DA2(mustA2beA2consistentA2withA2GASBA2concepts)

WhichA2isA2notA2necessarilyA2definitiveA2inA2definingA2SLGA2statusA2forA2GAAP?
A2A.A2ElectionA2ofA2officersA2B.A2AbilityA2toA2dissolveA2w/
A2reversionA2C.A2AbilityA2toA2taxA2D.A2AbilityA2toA2issueA2tax-exemptA2debtA2-A2Ans--D


WhichA2isA2trueA2aboutA2SECA2authority?
A2A.A2SECA2setsA2GAAPA2forA2SLGsA2directlyA2B.A2SECA2hasA2authorityA2forA2allA2SLGsA2C
.A2SECA2authorityA2forA2SLGsA2issuingA2bondsA2D.A2SECA2hasA2noA2authorityA2-A2Ans--D

TheA2FAFA2overseesA2which?
A2A.A2FASBA2B.A2GASBA2C.A2FASABA2D.A2IASBA2E.A2BothA2AA2andA2BA2-A2Ans--E


WhichA2isA2aA2comprehensiveA2GAAPA2compendiumA2organizedA2byA2topic?
A2A.A2GASBA2CodificationA2B.A2GASBA2OriginalA2Pronouncements A2C.A2AICPAA2SLGA2Au
ditA2GuideA2D.A2GASBA2ImplementationA2GuideA2-A2Ans--A

WhichA2ofA2theA2followingA2isA2aA2fundA2category?
A2A.A2InternalA2serviceA2fundsA2B.A2Business-
typeA2activitiesA2C.A2FiduciaryA2fundsA2D.A2AllA2-A2Ans--C

WhichA2mostA2likelyA2reportedA2inA2aA2proprietaryA2fund?
A2A.A2TaxesA2B.A2GrantsA2C.A2Fees/chargesA2D.A2ResourcesA2inA2trustA2-A2Ans--C