1. Financial condition refers to a governments ability to

a.Maintain existing service levels b.Withstand local and regional economic disruptions c.Meet the demands of natural growth, decline, and change d.Only A & B

e.A, B, & C

2. Which of the following might hinder the ability to measure financial conditions?

a.The nature of the public entity b.The state of municipal financial analysis c.The character of municipal accounting practices d.Only B & C e.A, B, & C

3. Short-term borrowing can be an indicator of operating deficits. What is short-term borrowing? a.Debt that is incurred and expected to be paid within a single fiscal year b.A debt that is usually done for cash flow purposes, particularly if the governments major funding source is property taxes c.The transfer of excess profits from one general fund to another d.Only A & B e.A, B, & C

4. Which formula is typically used to determine the cash position of a government? a.The fundamental equation b.The optimal cash transfer formula c.The economic ordering quantity formula

d.The assets and liabilities disbursement equation