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Unformatted text preview: e. All of the above. 88. Which would be considered a negative trend for a governmental unit? a. Long‐term Debt divided by Assets ratio is increasing. b. General Revenues plus Transfers divided by Expenses ratio is increasing. c. Unrestricted Net Assets divided by Expenses ratio is increasing. d. Change in Net Assets divided by Total Net Assets ratio is increasing. e. All of the above. 89. Which would be considered a negative trend for a governmental unit? a. Property taxes greater than 65% of the tax limit. b. Short‐term interest and current year‐end service greater than 15% of total revenue. c. Debt outstanding greater than 90% of the debt limit. d. Unreserved fund balance percentages increasing over time. e. None of the above is a negative trend. 91. Which statement is false? a. The quick ratio omits receivables and amounts due from other funds and governments. b. A large state government considers a quick ratio of more than 50% as an indicator of potential fiscal stress. c. The greater the fund balance as a percentage of revenue, the more likely the government will be able to overcome problems caused by revenue shortfalls. d. The combined financial statement is the main focus of the Comprehensive Annual Financial Report (CAFR). e. None of the above. 92. Forensic accountants should compare travel and expense vouchers to employment records and tax records in order to find: a. Kiting schemes. b. Lapping. c. Layering schemes. d. Ghost employees. e. All of the above. 93. You should trace bank transfers for the latter part of an audit period and the early part of the subsequent period to determine whether: a. The cash balances were overstated because of kiting. b. The cash receipts journal was held open for a few days after the end of the year. c. Any unusual payments to or receipts from related parties occurred. d. The last checks recorded before the year‐end were really mailed by year‐end. e. None of the above. Page 35 of 44 ...
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- Summer '10