NFP ACCOUNTING TEST #2 EXAM
QUESTIONS AND ANSWERS 100% PASS
what are the three major sections of a CAFR? - ✔✔introductory, financial,
and statistical
what are the three categories of information included in the financial
section of a CAFR? - ✔✔auditor's report, management's discussion and
analysis, and basic financial statements
what is the Government Finance Officers Association Certificate? What
must a government do in order to be awarded this certificate? - ✔✔A
certificate program to encourage and promote excellent financial reporting.
Government must have unmodified audit opinion and have report
reviewed with extensive checklist by independent reviewers
define the financial reporting entity - ✔✔the primary government together
with its component units
1
Katelyn Whitman, All Rights Reserved © 2025
, define and give an example of a primary government - ✔✔state
government, general-purpose local government like city or country, or a
special-purpose government like school district
define and give an example of a component unit - ✔✔legally separated
organizations where elected officials of primary government are financially
accountable; RIPTA
define and describe the two methods of reporting the primary government
component units in the financial reporting entity - ✔✔blending - financial
info becomes part of the financial statements of the primary government
discrete presentation - financial info of component is presented in a
column, apart from the primary government and not included in the totals
reported for primary government
describe the test for determining whether a governmental fund is a major
fund - ✔✔BOTH must be met: (1) total assets, liabilities revenues, or
expenditures of that individual governmental fund constitute 10% of the
total for the governmental funds category and are (2) 5% of the total of the
governmental and enterprise categories combined
2
Katelyn Whitman, All Rights Reserved © 2025
QUESTIONS AND ANSWERS 100% PASS
what are the three major sections of a CAFR? - ✔✔introductory, financial,
and statistical
what are the three categories of information included in the financial
section of a CAFR? - ✔✔auditor's report, management's discussion and
analysis, and basic financial statements
what is the Government Finance Officers Association Certificate? What
must a government do in order to be awarded this certificate? - ✔✔A
certificate program to encourage and promote excellent financial reporting.
Government must have unmodified audit opinion and have report
reviewed with extensive checklist by independent reviewers
define the financial reporting entity - ✔✔the primary government together
with its component units
1
Katelyn Whitman, All Rights Reserved © 2025
, define and give an example of a primary government - ✔✔state
government, general-purpose local government like city or country, or a
special-purpose government like school district
define and give an example of a component unit - ✔✔legally separated
organizations where elected officials of primary government are financially
accountable; RIPTA
define and describe the two methods of reporting the primary government
component units in the financial reporting entity - ✔✔blending - financial
info becomes part of the financial statements of the primary government
discrete presentation - financial info of component is presented in a
column, apart from the primary government and not included in the totals
reported for primary government
describe the test for determining whether a governmental fund is a major
fund - ✔✔BOTH must be met: (1) total assets, liabilities revenues, or
expenditures of that individual governmental fund constitute 10% of the
total for the governmental funds category and are (2) 5% of the total of the
governmental and enterprise categories combined
2
Katelyn Whitman, All Rights Reserved © 2025
