Question 1

Castlewood City School District has a separately elected governing body that administers the public school system. Although the district's budget is subject to the approval of the city council, the city is not obligated in any manner to provide financial support to the school district nor can the city access the resources of the school district. The district's financial activity should be

Accepted Answer

The district operates independently with its own governing body and financial autonomy from the city, indicating that its financial activities should be excluded from the city's financial statements.

Question 2

Information about related party transactions must be disclosed by a state or local government for which of the following? 
I. Related organizations
II. Jointly governed organizations
III. Joint ventures

Accepted Answer

According to Governmental Accounting Standards Board (GASB) Statement No. 84, a state or local government must disclose information about related party transactions for all three categories mentioned in the question - related organizations, jointly governed organizations, and joint ventures. Therefore, the correct choice is D, i.e., I, II, and III.

Question 3

Assume that a blended component unit of the town has its own General Fund, Special Revenue Fund, and Capital Projects Fund. All funds meet the major fund criteria. The primary government has a General Fund, three Special Revenue Funds, one Permanent Fund, one Debt Service Fund, and three Capital Projects Funds. All but the Permanent Fund and two Special Revenue Funds of the primary government are major funds. How many major Special Revenue Funds would the primary government report in the governmental funds financial statements?

Accepted Answer

The question states that the blended component unit has one Special Revenue Fund, therefore the primary government has a total of four Special Revenue Funds. However, only one of those Special Revenue Funds is a major fund, as the other two are not listed as major funds. Therefore, the primary government would report only one major Special Revenue Fund in the governmental funds financial statements.

Question 4

Wakefield Village and Wakefield County were partners in the development of the Wakefield Water Authority, which is a separate legal entity. Neither the village nor the county will share in any profits of the Authority. Both, however, are obligated to fund any deficits or debt defaults that may occur, though this scenario is considered to be highly unlikely. Both the village and the county appoint three of the seven Water Authority board members. The seventh is appointed by another village in the county. Both the Wakefield Village and Wakefield County should report the Authority as

Accepted Answer

The answer of Wakefield Village and Wakefield County were partners...

Question 5

Which of the following scenarios does not describe governing boards of a primary government and a potential component unit that are substantially the same?

Accepted Answer

In scenario C, the number of board members serving on the primary government and the potential component unit is different. In all the other scenarios, the boards are substantially the same in terms of membership.

Question 6

Which of the following potential component units would not be reported as blended component unit of the county?

Accepted Answer

The answer of Which of the following potential component units...

Question 7

If a primary government has an equity interest in a joint venture, the net investment (total equity interest) is reported as

Accepted Answer

If a primary government has an equity interest in a joint venture, the net investment (total equity interest) is reported as an asset of either governmental or business-type activities, as appropriate, in the government-wide statement of net position because joint ventures are considered to be separate entities in which the primary government has an investment.

Question 8

Match between columns
                        Premises:   Demographic and Economic Information
    Organization Chart
    Table of Contents
    Statement of Net Position
     Schedule of Revenues, Expenditures, and Changes in Fund Balance—Budget-to-Actual
     Proprietary Funds Statement of Cash Flows
    Summary of Significant Accounting Policies
    Letter of Transmittal
      Governmental Funds Balance Sheet
      Capital Assets note disclosure
    Reconciliation of Changes in Fund Balances to Changes in Net Position
     Management’s Discussion and Analysis
   Statement of Net Position—Component Units
    GFOA Certificate of Achievement for Excellence in Financial Reporting
    Statement of Fiduciary Net Position
     Parks and Recreation Special Revenue Fund Balance Sheet
    Changes in Net Position, Last 10 Years
    Statement of Activities
     Auditor’s Report

Accepted Answer

The Answer of Introductory and Financial and Statistical is...

Quiz 15: Financial Reportingthe Comprehensive Annual Financial Report and the Financial Reporting Entity

Information about related party transactions must be disclosed by a state or local government for which of the following? I. Related organizations II. Jointly governed organizations III. Joint ventures

Which of the following scenarios does not describe governing boards of a primary government and a potential component unit that are substantially the same?

Which of the following potential component units would not be reported as blended component unit of the county?

If a primary government has an equity interest in a joint venture, the net investment (total equity interest) is reported as

Identify the major section of the CAFR in which each element is found.