Test Bank for Essentials of Accounting for Governmental and Not-for-Profit Organizations, 14th Edition by Paul Copley|newest update 2026 A+

,TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
T T T T T T T T T T T T T T T




1) A Comprehensive Annual Financial Report (CAFR) would include an introd
T T T T T T T T T




uctory section, management's discussion and analysis, basic financial statements, re
T T T T T T T T T




quired supplementary information other than MD&A, combining and individual fu
T T T T T T T T T




nd statements, narrative explanations, and statistical section.
T T T T T T




⊚ true
⊚ false



2) The three major sections of a CAFR are the Introductory, Financial, and Statis
T T T T T T T T T T T T




tical sections.
T




⊚ true
⊚ false



3) The introductory and statistical sections of a CAFR are required to be audited.
T T T T T T T T T T T T




⊚ true
⊚ false



4) State and local governments are not required to prepare a CAFR.
T T T T T T T T T T




⊚ true
⊚ false



5) Combining statements are required whenever a non-
T T T T T T




major column is used in one of the fund financial statements.
T T T T T T T T T T




⊚ true
⊚ false



6) A complete CAFR includes combining financial statements to reflect greater det
T T T T T T T T T T




ail of nonmajor funds.
T T T




Version 1 T 1

, ⊚ true
⊚ false




Version 1
T 2

, 7) In addition to the government-
T T T T




wide statements, governments are required to prepare fund financial statements for gover
T T T T T T T T T T T




nmental, proprietary and fiduciary funds.
T T T T




⊚ true
⊚ false



8) In addition to the government-
T T T T




wide statements, governments are required to prepare fund financial statements for gover
T T T T T T T T T T T




nmental funds only. T T




⊚ true
⊚ false



9) The General Fund is not always considered to be a major fund when preparing fund
T T T T T T T T T T T T T T




basis financial statements.
T T T




⊚ true
⊚ false



10) With respect to fund basis financial statements, governmental funds are considere
T T T T T T T T T T




d to be a major fund when total assets, liabilities, revenues and expenditures combined ar
T T T T T T T T T T T T T T




e at least 10% of the total for the governmental funds category.
T T T T T T T T T T T




⊚ true
⊚ false



11) With respect to fund basis financial statements, a government may only designate
T T T T T T T T T T T T




a fund to be a major fund if it meets the size thresholds established by GASB.
T T T T T T T T T T T T T T T




⊚ true
⊚ false

Version 1 T 3