Chapter 9 Governmental Accounting
questions & correct answers
respectively.
50. Which of the following is an example of a special-purpose government?
A) Village government
B) Park district
C) Township government
D) City government ANS -B
51. Which of the following is not an example of a special-purpose government?
A) Village government
B) Tollway authority
C) Library district
D) Fire protection districts ANS -A
52. Which of the following would not be considered a special-purpose government for financial
reporting purposes?
A) A public school system.
B) An art museum.
C) A public hospital.
D) A county board of supervisors. ANS -D
53. Which of the following statements is true of a special-purpose government?
A) Special-purpose governments that are engaged in more than one governmental-type activities can
combine the fund and government-wide financial statements.
B) Special-purpose governments engaged in only one business-type activity have to prepare
government-wide financial statements.
, C) Special-purpose governments that are engaged in a single governmental-type activity may combine
the fund and government-wide financial statements.
D) GASB Statement 39: Determining Whether Certain Organizations Are Component Units applies only
to public educational institutions. ANS -C
54. Which of the following is not required for a special-purpose local government engaged in only
fiduciary type activities?
A) Statement of Fiduciary Net Assets
B) Statement of Fiduciary Cash Flows
C) Notes to the Financial Statements
D) Required Supplementary Information other than MD&A ANS -B
55. Special-purpose governments that are engaged in both governmental and business-type activities or
in more than one governmental activity are required to include all of the following in its financial
statements except?
A) Required supplementary Information
B) Fund basis financial statements
C) Government-wide financial statements
D) None of the above, these are all required ANS -D
56. Which of the following is true regarding financial reporting of special-purpose entities?
A) Special-purpose entities might be included as component units in a primary government's financial
statements.
B) Special-purpose entities that engage in a single governmental activity may prepare statements that
combine government-wide and governmental fund statements.
C) Both of the above are true.
D) Neither of the above is true. ANS -C
57. Assume a government is a special-purpose entity engaged in fiduciary activities only. Which of the
following financial statements would be required?
A) Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets.
B) Statement of Net Assets and Statement of Activities.
questions & correct answers
respectively.
50. Which of the following is an example of a special-purpose government?
A) Village government
B) Park district
C) Township government
D) City government ANS -B
51. Which of the following is not an example of a special-purpose government?
A) Village government
B) Tollway authority
C) Library district
D) Fire protection districts ANS -A
52. Which of the following would not be considered a special-purpose government for financial
reporting purposes?
A) A public school system.
B) An art museum.
C) A public hospital.
D) A county board of supervisors. ANS -D
53. Which of the following statements is true of a special-purpose government?
A) Special-purpose governments that are engaged in more than one governmental-type activities can
combine the fund and government-wide financial statements.
B) Special-purpose governments engaged in only one business-type activity have to prepare
government-wide financial statements.
, C) Special-purpose governments that are engaged in a single governmental-type activity may combine
the fund and government-wide financial statements.
D) GASB Statement 39: Determining Whether Certain Organizations Are Component Units applies only
to public educational institutions. ANS -C
54. Which of the following is not required for a special-purpose local government engaged in only
fiduciary type activities?
A) Statement of Fiduciary Net Assets
B) Statement of Fiduciary Cash Flows
C) Notes to the Financial Statements
D) Required Supplementary Information other than MD&A ANS -B
55. Special-purpose governments that are engaged in both governmental and business-type activities or
in more than one governmental activity are required to include all of the following in its financial
statements except?
A) Required supplementary Information
B) Fund basis financial statements
C) Government-wide financial statements
D) None of the above, these are all required ANS -D
56. Which of the following is true regarding financial reporting of special-purpose entities?
A) Special-purpose entities might be included as component units in a primary government's financial
statements.
B) Special-purpose entities that engage in a single governmental activity may prepare statements that
combine government-wide and governmental fund statements.
C) Both of the above are true.
D) Neither of the above is true. ANS -C
57. Assume a government is a special-purpose entity engaged in fiduciary activities only. Which of the
following financial statements would be required?
A) Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets.
B) Statement of Net Assets and Statement of Activities.
