CGFO Governmental Accounting & Financial Reporting 4

Question 1

Under GASB 34, which of the following would be included in the government-wide Statement of Activities as a 'program revenue'?

Accepted Answer

Fees charged to library cardholders for overdue materials

Answer

Program revenues are directly associated with a specific function, including charges for services, so library fines directly offset library program costs.

Question 2

A city receives a $500,000 federal grant that must be used only for road repairs. In which fund should this be recorded?

Accepted Answer

Special Revenue Fund, because the grant is restricted to a specific purpose

Answer

Restricted grants for a specific operating purpose are accounted for in a Special Revenue Fund to demonstrate legal compliance with spending restrictions.

Question 3

When reporting internal service fund activity in government-wide statements, where is the net revenue or deficit typically reclassified?

Accepted Answer

Governmental activities column, since ISFs predominantly serve governmental funds

Answer

Because internal service funds primarily serve governmental functions, their residual net revenue or loss is reclassified to governmental activities in the government-wide statements.

Question 4

What does GASB Statement No. 75 address?

Accepted Answer

Other postemployment benefits (OPEB) for governmental employers

Answer

GASB 75 established accounting and financial reporting requirements for OPEB (e.g., retiree health care), paralleling GASB 68 for pensions.

Question 5

A government's total assets are $50 million, total deferred outflows are $2 million, total liabilities are $40 million, and total deferred inflows are $3 million. What is the net position?

Accepted Answer

$9 million

Answer

Net Position = (Assets + Deferred Outflows) − (Liabilities + Deferred Inflows) = ($50M + $2M) − ($40M + $3M) = $9 million.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Governmental Accounting & Financial Reporting 4