CGFO Governmental Accounting & Financial Reporting 2

Question 1

Under GASB Statement No. 34, which financial statements are required for governmental funds?

Accepted Answer

Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances

Answer

GASB 34 requires governmental funds to present a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances.

Question 2

Which GASB concept distinguishes between 'available' and 'measurable' resources in the modified accrual basis of accounting?

Accepted Answer

Revenue recognition criteria requiring resources to be both measurable and available to finance current-period expenditures

Answer

Under modified accrual, revenues are recognized when they are both measurable and available (collectible within 60 days after year-end by convention).

Question 3

A government issues general obligation bonds to finance a capital project. In which fund type should the bond proceeds be recorded?

Accepted Answer

Capital Projects Fund

Answer

Bond proceeds for capital acquisitions are recorded in a Capital Projects Fund, which accounts for financial resources restricted to capital outlays.

Question 4

What is the primary purpose of the Management's Discussion and Analysis (MD&A) in a government's CAFR?

Accepted Answer

To provide an objective, easily readable analysis of the government's financial activities

Answer

The MD&A provides management's analytical overview of the government's financial activities, serving as an introduction to the financial statements.

Question 5

Under GASB 54, which fund balance classification is used for amounts that have been formally committed through the highest level of decision-making authority?

Accepted Answer

Committed

Answer

Committed fund balance requires formal action by the government's highest level of decision-making authority (e.g., an ordinance or resolution by the governing board).

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Governmental Accounting & Financial Reporting 2