Select the best answer to the following multiple-choice questions: 1. In the statement of activities, a. All

Question:

Select the best answer to the following multiple-choice questions:
1. In the statement of activities,
a. All expenses are subtracted from all revenues to get net income.
b. It is possible to determine the net program expense (revenue) for major functions and programs of the primary government and its component units.
c. Some tax revenues are considered program revenues, and others are considered general revenues.
d. Extraordinary items are those that are either unusual in nature or infrequent in occurrence.
2. Which of the following is true regarding financial reporting under GASB Statement No. 34?
a. A comparison of budget and actual revenues and expenditures for the general fund is required as part of the basic Infrastructure must be recorded and depreciated as part of the statement of activities in the basic Public colleges and universities are to report in exactly the same manner as private colleges and universities.
d. Special purpose governments that have only business-type activities are permitted to report only the required for enterprise funds.
3. Which of the following is true regarding the government-wide The government-wide include the statement of net assets and the statement of activities.
b. The government-wide are to be prepared using the economic resources measurement focus and the accrual basis of accounting.
c. The government-wide include information for governmental activities, business-type activities, the total primary government, and its component units.
d. All of the above are true.
4. Which of the following is not part of the basic Governmental funds statement of revenues, expenditures, and changes in fund balances
b. Budgetary comparison schedules —general and special revenue funds
c. Government-wide statement of activities
d. Notes to the Which of the following is not part of the basic Government-wide statement of net assets
b. Proprietary funds statement of revenues, expenses, and changes in fund net assets
c. Combining —non-major governmental funds
d. Notes to the Which of the following is true regarding the organization of the comprehensive annual financial report?
a. The three major sections are introductory, financial, and statistical.
b. The management’s discussion and analysis is considered to be part of the introductory section.
c. The auditor’s report is considered to be part of the statistical section.
d. Basic include the government-wide statements, the budgetary statement, and the notes to the Which of the following is true regarding the government-wide The government-wide include the statement of net assets and the statement of activities.
b. The government-wide are prepared on the financial resources measurement focus for governmental activities and the economic resources measurement focus for business-type activities.
c. Prior-year data must be presented.
d. Works of art, historical treasures, and similar assets must be capitalized.
8. Under GASB Statement No. 34, which of the following is true of infrastructure?
a. Infrastructure must be recorded and depreciated unless a modified approach is used, in which case, depreciation is not required.
b. Infrastructure must be recorded and depreciated in all cases.
c. Infrastructure is not to be recorded and depreciated.
d. The state and local governments have the option, but are not required, to record and depreciate infrastructure.
9. Which statement is true regarding the ‘‘major’’ funds?
a. The general fund is always considered major.
b. Other funds are considered major if both of the following conditions exist:
(1) Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund constitute 10% of the governmental or enterprise categories, and
(2) Total assets, liabilities, revenues, or expenditures/expenses are 5% of the total of the governmental and enterprise categories.
c. A government may choose to reflect a fund as major even if it does not meet the criteria for major funds.
d. All of the above are true.
10. Which of the following groups sets standards for audits of federal financial assistance recipients?
a. U.S. General Accounting Office
b. U.S. Office of Management and Budget
c. Governmental Accounting Standards Board
d. Financial Accounting Standards Board
11. OMB Circular A-133 applies
a. Only to state and local governmental units.
b. Only to not-for-profit organizations.
c. To both state and local governments and not-for-profit organizations.
d. To neither state and local governments nor not-for-profit organizations.
12. The total amount of grant expenditures that must be covered in the audit of major programs is
a. $500,000.
b. 50% of federal expenditures.
c. 25% of federal expenditures.
d. 50% of federal expenditures generally but only 25% if the government is considered to be a low-risk auditee.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...