CPA Exam: FAR - Governmental Accounting Questions and Answers.

CPA Exam: FAR - Governmental
Accounting Questions and Answers.
What fund(s) use modified accrual basis for timing purposes? - Answer all governmental funds
(General, capital projects, debt service, permanent, special revenue)



What fund(s) use regular accrual basis for timing purposes? - Answer1. Proprietary Funds (enterprise
& internal service)

2. Fiduciary Funds



What qualifies a fund as a major vs. a non-major fund? - Answer if its assets make up at least 10% of
that fund's total assets.




Remember, it's 10% of that specific fund, not of all assets across the funds (governmental,
proprietary, fiduciary)



What is the order to how the financial statement information is presented in the CAFR? - Answer1.
Auditor's Report

2. MD&A

3. Government-wide financial statements

- Gov't wide Statement of Net Position

- Gov't wide Statement of Activities

4. Fund Financial Statements

General:

-Balance sheet

-SRECNP

Proprietary

- SNP

- SRECNP

- Statement of Cash Flows

Fiduciary

- Statement of Net Position