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Chapter 2 Overview of Financial Reporting for State and Local Governments
from Test bank for essentials of accounting for governmental and not for profit organizations 13th editio
Topic: Fund basis statements
Feedback: A complete CAFR presents combining statements to reflect its nonmajor funds whenever a nonmajor column is used in one of the fund statements.
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6. A complete CAFR includes combining financial statements to reflect nonmajor funds.
Answer: True
Learning Objective: 1
Topic: Fund basis statements
Feedback: A complete CAFR presents combining statements to reflect its nonmajor funds whenever a nonmajor column is used in one of the fund statements.
7. In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds.
Answer: True
Learning Objective: 1
Topic: Fund basis statements
Feedback: In addition to the government-wide statement, governments are required to prepare fund-level financial statements within the three categories of funds: governmental, proprietary and fiduciary.
8. In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental funds only.
Answer: False Learning Objective: 1
Topic: Fund basis statements
Feedback: In addition to the government-wide statement, governments are required to prepare fund-level financial statements within the three categories of funds: governmental, proprietary and fiduciary.
9. The General Fund is not always considered to be a major fund when preparing fund basis financial statements.
Answer: False Learning Objective: 1
Topic: Reporting by Major Funds
Feedback: In addition to the government-wide statement, governments are required to prepare fund-level financial statements and are required to present separate columns for each major fund. The general fund is considered a major fund for reporting purposes.
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