Chap009 - Chapter 09 - Financial Reporting of State and...

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Chapter 09 - Financial Reporting of State and Local Governments Chapter 09 Financial Reporting of State and Local Governments True / False Questions 1. Most citizens and financial statement users do not have a clear understanding of the financial reporting entity whose financial position, results of operations, and cash flows are included in an annual financial report. True False 2. According to the guidance of GASB Concepts Statement 3 , financial information can be communicated by recognition in the financial statements, disclosure in the notes to the financial statements, presentation as required supplementary information, or presentation as supplementary information. True False 3. State and local governments should prepare only those financial reports required by law— generally year-end financial statements. True False 4. A financial reporting entity is defined as a primary government, as well as all other organizations that have an operational relationship with the primary government. True False 5. A component unit is dependent on the primary government if the primary government is obligated for its debt. True False 6. Comprehensive annual financial reports of state and local governments should include (1) an introductory section, (2) a financial section, and (3) a supplemental section. True False 9-1
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Chapter 09 - Financial Reporting of State and Local Governments 7. The MD&A should provide information that is prospective in nature. True False 8. Statistical tables included in comprehensive annual financial reports should provide social and economic data, in addition to financial data, to assist financial statement users in better understanding the activities and condition of the government. True False 9. The accounting system used by a state or local government must make it possible to prepare financial statements as required by the Financial Accounting Standards Board. True False 10. Under GASB standards, the financial statements that report on business-type activities at the government-wide level include the statement of net assets, statement of activities, and statement of cash flows. True False 11. Fiduciary activities are not reported in the government-wide financial statements under GASB standards. True False 12. Other comprehensive bases of accounting (OCBOA) are considered generally accepted accounting principles (GAAP) for state and local governments. True False 13. In converting from the modified accrual basis of accounting information in a governmental fund to accrual basis for the government-wide statements, capital assets acquired by a governmental fund are deducted from fund balance—governmental funds to arrive at net assets of governmental activities. True False 9-2
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Chapter 09 - Financial Reporting of State and Local Governments 14. In preparation of government-wide statements, converting information recorded using the modified accrual basis of accounting to the accrual basis, where appropriate, is conceptually
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This note was uploaded on 02/20/2012 for the course ACCTG 471 taught by Professor Muthannette during the Fall '08 term at Pennsylvania State University, University Park.

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Chap009 - Chapter 09 - Financial Reporting of State and...

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