Question are from AC 556 Accounting for Government and Non profit Entities. Chapters 7,8,9,10,11 and 12

Which of the following is not one of the methods recommended by the GASB for communicating information to external users of government financial reports?

a. Providing information via newsletters. b. Recognition in the financial statements. c. Presentation as required supplementary information. d. Disclosure in the notes to the financial statements

All of the following are objectives of activity-based cost (ABC) accounting in government except

a. To preserve, at a minimum, the present quality and availability of services. b. To help find lower cost alternatives to providing services. c. To link customer (taxpayer) satisfaction to improvements in the operating systems used to provide goods and services. d. To make increases in the volume of services dependent on reducing costs.

Which of the following ratios would be most helpful in assessing the liquidity of a governmental entity?

a. Net tax-supported long-term debt/population. b. Own source revenues/total revenues. c. Debt service expenditures/total expenditures. d. Unreserved fund balance/operating revenues.

What constitutes the basic financial statements of a government?

a. Financial section of the comprehensive annual financial report (CAFR). b. Government-wide financial statements plus notes. c. Government-wide financial statements plus fund financial statements plus notes. d. Government-wide financial statements plus fund financial statements plus notes plus required supplementary information (RSI).

Which of the following statements about credit analysts' models is true?

a. Credit analysts focus on debt and finances, and not demographics and management strategies. b. Credit analysts have access to the same set of information that internal managers use. c. Credit analysts are concerned with assessing a government's ability to pay interest and principal on debt when due. d. Credit analysts rarely use comprehensive annual financial reports.

Audits of state and local governments may be performed by all of the following except

a. Independent CPAs. b. State audit agencies. c. Federal grantor agencies. d. Client management.