Multiple Choice. Choose the best answer.1. Which of the following would be included as part of a governmental reporting entity?a. A primary government and any legally separate organization located within the geographic boundaries of the primary government.b. A primary government and any legally separate organization for which the primary government is financially accountable.c. A primary government and any legally separate organization that requests to be included.d. None of the above; a reporting entity consists of only a primary government.2. Which of the following statements is true regarding the basic financial of a state or local government?a. Separate columns must be provided in the government-wide financial statements for governmental activities business-type activities and fiduciary activities.b. Discretely presented component units should be reported as a separate column on the fund financial statements.c. Governmental fund financial statements should provide separate columns for each major fund.d. All of the above.3. In the reporting of governmental activities fiscal accountability is demon started by:a. Government-wide financial statements.b. Fund financial statements.c. Both fund and government-wide financial statements.d. Neither fund nor government-wide financial statements.4. The measurement focus and basis of accounting that should be used for the governmental fund financial statements are:Measurement Focus Basis of Accountinga. Current financial resources Modified accrualb. Current financial resources Accrualc. Economic resources Modified accruald. Economic resources Accrual5. Which of the following statements is true regarding the definition of a fund?a. A fund is a fiscal and accounting entity.b. A fund has a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equities or balances and changes therein.c. Resources related liabilities and residual equities or balances and changes therein are segregated for the purpose of carrying out specific activities or attaining certain objectives.d. All of the above.6. Capital assets used for governmental activities such as those of the police department should be reported in:a. Governmental fund financial statements only.b. Government-wide financial statements only.c. Neither governmental fund nor government-wide financial statements.d. Both governmental fund and government-wide financial statements.7. Assets and liabilities of activities for which the government is acting in either an agency or trustee capacity for individuals organizations or other governments should be reported in:a. The fiduciary column of the government-wide financial statements.b. The fiduciary fund financial statements.c. Both government-wide and fiduciary fund statements.d. Neither government-wide nor fiduciary fund statements.8. Under the modified accrual basis of accounting:a. Revenues are recognized at the time an exchange transaction occurs.b. Expenditures are recognized as the cost of an asset expires or is used up in providing governmental services.c. Revenues are recognized when current financial resources become measurable and available to pay current-period obligations.d. Expenses are recognized when an obligation occurs for costs incurred in providing services.9. Which of the following is a difference between financial reporting for internal service and enterprise funds?a. Internal service funds are reported in the governmental fund financial statements.b. Internal service funds are reported in the proprietary fund financial statements.c. Internal service funds are generally reported in the Business-type Activities column of the government-wide financial statements.d. Internal service funds are generally reported in the Governmental Activities column of the government-wide financial statements.10. Which of the following must be reported as a major fund?a. The General Fund.b. A fund having total assets liabilities revenues or expenditures/expenses equaling at least 10 percent of the total governmental or enterprise fund amount for the same element (assets liabilities and so forth) as applicable and at least 5 percent of the combined governmental and enterprise fund total amount for the same element.c. Both a and b.d. Neither a nor b.
