CGFM Governmental Financial Reporting Standards 3

Question 1

Which GASB statement introduced the concept of major funds for state and local governments?

Accepted Answer

GASB Statement No. 34

Answer

GASB Statement No. 14

Answer

GASB Statement No. 27

Answer

GASB Statement No. 45

Question 2

Under GASB standards, when is a governmental fund considered a 'major fund'?

Accepted Answer

When it meets specific quantitative thresholds related to total assets, liabilities, revenues, or expenditures

Answer

When it has more than $1 million in revenues

Answer

When it is mandated by state law

Answer

When it receives federal grants

Question 3

What is the purpose of note disclosures in a government's financial statements?

Accepted Answer

To provide detailed information about specific transactions and policies that cannot be found in the statements themselves

Answer

To summarize the budget vs. actual results

Answer

To list all employees and salaries

Answer

To report on capital asset depreciation only

Question 4

Which governmental accounting concept requires that resources must be legally or contractually restricted to be reported in a special revenue fund?

Accepted Answer

GASB Statement No. 54

Answer

GASB Statement No. 63

Answer

GASB Statement No. 34

Answer

GASB Statement No. 77

Question 5

What is 'government-wide' reporting designed to accomplish?

Accepted Answer

Show the overall financial position of the government including all long-term assets and liabilities

Answer

Track budget variances by department

Answer

Consolidate only enterprise fund activities

Answer

Report only capital project expenditures

Question 6

In the context of GASB reporting, what is 'net position'?

Accepted Answer

Total assets plus deferred outflows minus total liabilities minus deferred inflows

Answer

The difference between revenues and expenditures in the current year

Answer

The fund balance in the General Fund

Answer

The accumulated depreciation on capital assets