Gov. and Non-Profit ACCT Exam 2 with correct answers.

Gov. and Non-Profit ACCT Exam 2 with
|\ |\ |\ |\ |\ |\ |\




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.
|\