Gov. and Non-Profit ACCT Exam 2 with
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correct answers |\
ACFR - CORRECT ANSWERS ✔✔Annual Comprehensive Financial
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Report. |\
3 Parts:
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1.Introductory.
2.Financial section. |\
3.Statistical section. |\
Minimum GAAP reporting requirements - CORRECT ANSWERS
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✔✔1. Management's discussion and analysis.
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2. Basic Financial Statements (Government-wide, Fund Basis, and
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Footnotes).
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3. Required supplementary information (other than MD&A).
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ACFR Financial Section - CORRECT ANSWERS ✔✔Management
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discussion and analysis (M D&A). |\ |\ |\ |\
Paragraph format summary of most important issues during the
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year. Reviewed by auditor
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Auditors reports and RSI |\ |\ |\
ACFR Statistical Section - CORRECT ANSWERS ✔✔•Not audited.
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,•Information is often not financial in nature. |\ |\ |\ |\ |\ |\
•Generally, presents 10 years of information. |\ |\ |\ |\ |\
Government Reporting Entity - CORRECT ANSWERS ✔✔If the |\ |\ |\ |\ |\ |\ |\ |\
primary government is financially accountable for another entity
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the "component unit" must be included as part of the primary
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government's report. |\
Component unit - CORRECT ANSWERS ✔✔Separate governmental |\ |\ |\ |\ |\ |\
unit, agency, or nonprofit corporation that is combined with
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other component units and the primary government to constitute
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the reporting entity
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Characteristics for component unit to be included in Primary |\ |\ |\ |\ |\ |\ |\ |\ |\
Gov's FS - CORRECT ANSWERS ✔✔First: relationship includes one
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of these two:
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(1) the primary government controls a voting major of the other
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organization's governing board or otherwise may impose its will |\ |\ |\ |\ |\ |\ |\ |\ |\
on the organization; or
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(2) the other organization is fiscally dependent upon the primary
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government. An entity is fiscally dependent on a primary |\ |\ |\ |\ |\ |\ |\ |\ |\
government if that government approves or modifies its budget, |\ |\ |\ |\ |\ |\ |\ |\ |\
sets charges for its services, or if the government's approval is
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required to issue debt. |\ |\ |\
Second: the related organization must represent a financial
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benefit or burden to the primary government.
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•A financial burden: primary government is responsible for
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liabilities of the other organization. |\ |\ |\ |\
, •Financial benefit: government is entitled to or may access the
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other organization's resources. |\ |\
Blended Presentation - CORRECT ANSWERS ✔✔the component
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unit data are combined with the appropriate fund types of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
primary government and reported in the same columns as the
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data from the primary government.
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Discrete Presentation - CORRECT ANSWERS ✔✔The method of
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reporting financial data of component units in a column(s)
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separate from the financial data of the primary government.
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Determinants if a fund will be considered major - CORRECT |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔•Fund has 10% of the total assets, liabilities,
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revenues, or expenditures in the GOVT category, and |\ |\ |\ |\ |\ |\ |\
• 5% of total the total assets, liabilities, revenues, or
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expenditures of GOVT + ENTERPRISE amounts. |\ |\ |\ |\ |\
Are Fiduciary Funds included in the Government Wide Financial
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Statements - CORRECT ANSWERS ✔✔government-wide |\ |\ |\ |\ |\
statements do not include fiduciary fund resources or activities,
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as these resources belong to others.
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3 Categories for sorting net position - CORRECT ANSWERS ✔✔•1.
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Net Investment in capital assets.
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•2. Restricted.|\
•3. Unrestricted.
|\
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correct answers |\
ACFR - CORRECT ANSWERS ✔✔Annual Comprehensive Financial
|\ |\ |\ |\ |\ |\ |\
Report. |\
3 Parts:
|\
1.Introductory.
2.Financial section. |\
3.Statistical section. |\
Minimum GAAP reporting requirements - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔1. Management's discussion and analysis.
|\ |\ |\ |\
2. Basic Financial Statements (Government-wide, Fund Basis, and
|\ |\ |\ |\ |\ |\ |\
Footnotes).
|\
3. Required supplementary information (other than MD&A).
|\ |\ |\ |\ |\ |\
ACFR Financial Section - CORRECT ANSWERS ✔✔Management
|\ |\ |\ |\ |\ |\ |\
discussion and analysis (M D&A). |\ |\ |\ |\
Paragraph format summary of most important issues during the
|\ |\ |\ |\ |\ |\ |\ |\ |\
year. Reviewed by auditor
|\ |\ |\
Auditors reports and RSI |\ |\ |\
ACFR Statistical Section - CORRECT ANSWERS ✔✔•Not audited.
|\ |\ |\ |\ |\ |\ |\
,•Information is often not financial in nature. |\ |\ |\ |\ |\ |\
•Generally, presents 10 years of information. |\ |\ |\ |\ |\
Government Reporting Entity - CORRECT ANSWERS ✔✔If the |\ |\ |\ |\ |\ |\ |\ |\
primary government is financially accountable for another entity
|\ |\ |\ |\ |\ |\ |\ |\
the "component unit" must be included as part of the primary
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
government's report. |\
Component unit - CORRECT ANSWERS ✔✔Separate governmental |\ |\ |\ |\ |\ |\
unit, agency, or nonprofit corporation that is combined with
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
other component units and the primary government to constitute
|\ |\ |\ |\ |\ |\ |\ |\
the reporting entity
|\ |\ |\
Characteristics for component unit to be included in Primary |\ |\ |\ |\ |\ |\ |\ |\ |\
Gov's FS - CORRECT ANSWERS ✔✔First: relationship includes one
|\ |\ |\ |\ |\ |\ |\ |\ |\
of these two:
|\ |\
(1) the primary government controls a voting major of the other
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
organization's governing board or otherwise may impose its will |\ |\ |\ |\ |\ |\ |\ |\ |\
on the organization; or
|\ |\ |\
(2) the other organization is fiscally dependent upon the primary
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
government. An entity is fiscally dependent on a primary |\ |\ |\ |\ |\ |\ |\ |\ |\
government if that government approves or modifies its budget, |\ |\ |\ |\ |\ |\ |\ |\ |\
sets charges for its services, or if the government's approval is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
required to issue debt. |\ |\ |\
Second: the related organization must represent a financial
|\ |\ |\ |\ |\ |\ |\ |\
benefit or burden to the primary government.
|\ |\ |\ |\ |\ |\
•A financial burden: primary government is responsible for
|\ |\ |\ |\ |\ |\ |\ |\
liabilities of the other organization. |\ |\ |\ |\
, •Financial benefit: government is entitled to or may access the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
other organization's resources. |\ |\
Blended Presentation - CORRECT ANSWERS ✔✔the component
|\ |\ |\ |\ |\ |\ |\
unit data are combined with the appropriate fund types of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
primary government and reported in the same columns as the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
data from the primary government.
|\ |\ |\ |\
Discrete Presentation - CORRECT ANSWERS ✔✔The method of
|\ |\ |\ |\ |\ |\ |\ |\
reporting financial data of component units in a column(s)
|\ |\ |\ |\ |\ |\ |\ |\ |\
separate from the financial data of the primary government.
|\ |\ |\ |\ |\ |\ |\ |\
Determinants if a fund will be considered major - CORRECT |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔•Fund has 10% of the total assets, liabilities,
|\ |\ |\ |\ |\ |\ |\ |\ |\
revenues, or expenditures in the GOVT category, and |\ |\ |\ |\ |\ |\ |\
• 5% of total the total assets, liabilities, revenues, or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
expenditures of GOVT + ENTERPRISE amounts. |\ |\ |\ |\ |\
Are Fiduciary Funds included in the Government Wide Financial
|\ |\ |\ |\ |\ |\ |\ |\ |\
Statements - CORRECT ANSWERS ✔✔government-wide |\ |\ |\ |\ |\
statements do not include fiduciary fund resources or activities,
|\ |\ |\ |\ |\ |\ |\ |\ |\
as these resources belong to others.
|\ |\ |\ |\ |\
3 Categories for sorting net position - CORRECT ANSWERS ✔✔•1.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Net Investment in capital assets.
|\ |\ |\ |\ |\
•2. Restricted.|\
•3. Unrestricted.
|\
