Township has received a donation of a rare peinting financial statements, three to recognize the painting as an asset Which of the fohowing is wot one (1.) The painting is held for public exhibition, odscation, or research in urherawe of public service, rather than financial gain. (2.) The painting is scheduled to be sold imnvediately at auction. (3.) The painting is protected, kept unencumbered, cared for, and preverved A) Item 2 is not one of the three criteria. B) Item 1 is not one of the thrce criteria. ) Item 3 is not one of the three criteria D) All three items are required criteria E) None of the three items are required criteria 42) Which of the following statements regarding Managements true? regarding Management's Discussion and Analyiis is A) MD&A is required only for Proprictary Fund Financial Sunements B) MD&A is required for comprehensive annual fimancial reports 9 MD&A for state and local government financial statements emust of potential, untapped revenue sources. is an optional inclusion for state and local govemmment financial statemets E) MD&A is reported in the statistical section of the anual repont. 43) What are the three broad sections of a state or local government's CAFR? A) Introductory, statistical, and component units. B) Financial statements, notes to the financial statements, and component C) Financial statements, notes to the financial statements, and statistical D) Introductory, financial, and statistical. E) Component units, financial, and statistical. 44) Which of the following is a financial statement of a proprietary fund? A) Statement of Changes in Cash Flows. B) Statement of Revenues, Expenditures, and Changes in Fund Balance. C) Statement of Operations. D) Balance sheet E) Statement of Net Position. 45) 45) Which statement is false regarding the government A) Discretely presented component units are grouped and shown on the right of the total. -wide Statement of Net Position? B) Noncurrent liabilities are presented separately from current liabilities. C) Assets are reported excluding capital assets. D) Capital assets are reported net of depreciation. E) Investments are reported at fair value rather than historical cost. 12