1. The government-wide statement of net position, What type of activity is not present that you would expect? Why is this type of activity missing?

2. Referring still to the government-wide statement of net position , the accrual basis of accounting is used in this set of statements. How would you know this even if we had not identified the required basis of accounting ?

3. Referring still to the government-wide statement of net position , identify the title of the equity section, as well as the components. Also identify why (or why not) there should be concerns with equity balances.

4. Using the statement of activities presented , identify the TWO governmental activities which require the largest subsidy by general revenues (in other words, what activity has the biggest net expense?). Is this what you would expect? Explain.

5. The governmental funds' balance sheet is presented on pages . The modified accrual basis of accounting is used in this set of statements. How would you know this even if we had not identified the required basis of accounting ?

6. Using the balance sheet of governmental funds, identify the title of the equity section and each of the five components and briefly speculate about the purpose of each component. Identify the equity amount for total governmental funds. How does this compare to total equity for governmental activities presented in the government-wide statements?

7. The governmental funds' statement of revenues, expenditures, and changes in fund balances . How are revenues and expenditures categorized? What title is given to the "net income" equivalent, and what is the amount for total governmental funds?

8. Referring still to the governmental funds' statement of revenues, expenditures, and changes in fund balance , what accounts look different that might suggest the modified accrual basis of accounting?

9. Refer to the following proprietary funds financial statements: (1) statement of net position, (2) statement of revenues, expenses, and changes in net position for the proprietary funds, and (3) statement of cash flows all for the proprietary funds . What kinds of activities are reported in these statements? What concerns do you have, if any, with the "net income" equivalent reported? What type of activity that we discussed as belonging to proprietary funds is not present for Rutherford County?