1. Which of the following is true regarding the proprietary fund financial statements?
A) The Statement of Net Assets (or Balance Sheet) reflects equity as contributed equity and retained earnings.
B) Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements.
C) Statements include the Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Fund Net Assets, and Statement of Cash Flows.
D) The Statement of Cash Flows may be prepared using either the direct or indirect methods.
2. Which of the following is true regarding the fiduciary fund financial statements?
A) Fiduciary fund financial statements include the Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets.
B) Fiduciary fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.
C) Fiduciary fund financial statements reflect equity as reserved and unreserved.
D) Agency funds are reported only on the Statement of Changes in Fiduciary Net Assets.
3. Which of the following is notconsidered Required Supplementary Information (RSI)?
A) Management’s Discussion and Analysis.
B) Budgetary Comparison Schedule.
C) Notes to the financial statements.
D) None of the above; all are considered RSI.
4. Which of the following is considered Required Supplementary Information (RSI)?
A) Management’s Discussion and Analysis.
B) Budgetary Comparison Schedule.
C) Schedule of Risk Management Activities.
D) All of the above are considered RSI.
5. Governmental-type funds label the excess of assets over liabilities on the balance sheet as:
A) Net Assets
B) Net Fund Balance and Liabilities
C) Fund Balance
D) Assets Net of Liabilities
6. In addition to the government-wide statements, governments are required to prepare fund financial statements for which of the following category of funds?
A) Proprietary funds
B) Governmental type funds
C) Fiduciary funds
D) All of the above
7. Which of the following is true regarding the Comprehensive Annual Financial Report (CAFR)?
A) The CAFR has three main sections: introductory, financial, and statistical.
B) Required Supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget (unless a statement is prepared).
C) Both of the above.
D) Neither of the above.
