Full 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.
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1) A Comprehensive Annual Financial Report (CAFR) would include an introductory sec
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tion, management's discussion and analysis, basic financial statements, required supplementar
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y information other than MD&A, combining and individual fund statements, narrative explana
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tions, and statistical section.
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⊚ true
⊚ false


2) The three major sections of a CAFR are the Introductory, Financial, and Statistical secti
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ons.

⊚ true
⊚ false


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


4) State and local governments are not required to prepare a CAFR.
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⊚ true
⊚ false


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




major column is used in one of the fund financial statements.
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⊚ true
⊚ false


6) A complete CAFR includes combining financial statements to reflect greater detail of non
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major funds. J




⊚ true
⊚ false


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




wide statements, governments are required to prepare fund financial statements for governmental, pr
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oprietary and fiduciary funds. J J J




⊚ true
⊚ false


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




wide statements, governments are required to prepare fund financial statements for governmental fun
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ds only.J




⊚ true
⊚ false


9) The General Fund is not always considered to be a major fund when preparing fund basis finan
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cial statements.J




⊚ true
⊚ false


10) With respect to fund basis financial statements, governmental funds are considered to be a ma
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jor fund when total assets, liabilities, revenues and expenditures combined are at least 10% of the tota
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l for the governmental funds category.
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⊚ true
⊚ false


11) With respect to fund basis financial statements, a government may only designate a fund to be
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a major fund if it meets the size thresholds established by GASB.
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⊚ true
⊚ false


12) With respect to fund basis financial statements, a government may designate any fund to be a
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major fund if reporting that fund separately would be useful.
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, ⊚ true
⊚ false


13) When preparing fund basis financial statements, funds not reported separately are agg
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regated and reported in a single column under the label nonmajor funds.
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⊚ true
⊚ false


14) When preparing fund basis financial statements, funds not reported separately are rep
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orted individually by function.
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⊚ true
⊚ false


15) Fiduciary fund statements are prepared using the current financial resources measurement foc
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us and modified accrual basis of accounting.
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⊚ true
⊚ false


16) Governmental fund statements are prepared using the economic financial resources me
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asurement focus and modified accrual basis of accounting.
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⊚ true
⊚ false


17) According to the GASB, a primary government can only be a state or a general-
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purpose local government, such as a city or county.
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⊚ true
⊚ false


18) Blending of financial information is done when component units and the primary gov
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ernment are so intertwined that they are essentially the same.
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