1.

Activities of a county hospital that is organized as a not-for-profit are likely to be reported

Select one:

A. As an NFP organization, following FASB reporting principles.

B. As a discretely presented component unit in the county's financial statements.

C. As a blended component unit in the county's financial statements.

D. In its own financial statements, separate from the county's financial statements.

2.

Which of the following entities is least likely to be included as a blended component unit in a county governments financial statements?

Select one:

Tobacco settlement financing authority, whose board members are appointed by the country

County library, funded by general obligation bonds

County building authority, whose board members are appointed by the county

County water authority, funded by debt secured by water revenues

3.

Organizations that rate a government's bond issues are least interested in

Select one:

A. Material departures from GAAP in the government's financial statements.

B. Whether the government's financial statements are audited on a timely basis.

C. The impact of the government's current performance on future tax rates.

D. The government's future financing plans.

4.

A state university's activities are reported in the state CAFR as a proprietary fund. The university issues variable rate debt and hedges its interest rate risk with a receive variable/pay fixed interest rate swap. If market interest rates increase, how is the derivative investment, reported on the state's proprietary funds statement of net position, affected?

Select one:

A. Investment value increases

B. Deferred outflows increase

C. Not reported

D. Investment value declines

5.

State and local governments often invest liquid assets on a short-term or long-term basis for income and capital gains. Which statement best describes the reporting for these investments, per SGAS 31?

Select one:

A. Investments are reported at market value, with changes in value accumulated in a contra-asset account, and the net balance is reported at cost.

B. Investments are classified as trading or held to maturity. Trading securities are reported at market value, with changes in value reported in the appropriate operating statement. Held to maturity investments are reported at cost.

C. Investments are reported at cost. Any gain or loss is reported when the investments are liquidated.

D. Investments are reported at market value, with changes in value reported in the appropriate operating statement.

6. A county's general fund has $4,000,000 in purchase orders outstanding at the beginning of 2020. The orders are delivered in 2020 and the county pays the suppliers $4,000,000. Expenditures ordered, delivered and paid for in 2020 total $35,000,000. Near the end of 2020, encumbrances for $5,000,000 in purchase orders are recorded. Encumbrances are reported in fund balanceassigned. At the end of 2020, to what fund balance account are the $4,000,000 in expenditures related to beginning-of-year encumbrances closed, using each basis of reporting?

Legal Budgetary Basis

GAAP Budgetary Basis

Select one:

A.

Fund balanceassigned

Fund balanceunassigned

B.

Fund balanceassigned

Fund balanceassigned

C.

Fund balanceunassigned

Fund balanceassigned

D.

Fund balanceunassigned

Fund balanceunassigned