Exam 1.htm - Select the BEST answer to each question from...

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Select the BEST answer to each question from those given. Each Problem is worth 4 points. 1. The Financial Accounting Standards Board has the responsibility for setting accounting and financial reporting standards for A) All federal and state organizations. B) All not-for-profit organizations that are nongovernmental and business entities. C) All not-for-profit organizations. D) Both B) and C) are correct. B 2. The GASB has identified which of the following as the "cornerstone" of all financial reporting in government? A) Understandability. B) Representational faithfulness. C) Accountability. D) Inter-period equity. C 3. Which of the following is not an objective of financial reporting by state and local governments? A) To assist financial report users in comparing actual financial results with the legally adopted budget. B) To assist users in assessing financial condition and results of operations. C) To assist users in assessing the adequacy of systems and controls.
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D) None of the above; that is, all of the above are objectives of state and local government financial reporting. C 4. The three sections recommended by GASB for inclusion in the Comprehensive Annual Financial Report (CAFR) are: A) Introductory, financial, and statistical. B) Letter of transmittal, MD&A, and financial. C) Introductory, MD&A, and financial. D) Letter of transmittal, financial, and supplementary. A 5. Which of the following is information that should be included in the financial section of a comprehensive annual financial report? A) The auditor's report. B) The basic financial statements. C) Notes to the financial statements. D) All of these should be included. D 6. Which of the following groups normally would not be considered a primary user of a state or local government's general-purpose external financial statements?
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A) Citizens. B) Managers.
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This note was uploaded on 02/23/2010 for the course ACTG 23123 taught by Professor Navaroli during the Spring '10 term at CSU San Bernardino.

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Exam 1.htm - Select the BEST answer to each question from...

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