Chap009a - Chapter 09 - Financial Reporting of State and...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 09 - Financial Reporting of State and Local Governments Chapter 09 Financial Reporting of State and Local Governments Answer Key 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 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 3. State and local governments should prepare only those financial reports required by law— generally year-end financial statements. 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. FALSE 5. A component unit is dependent on the primary government if the primary government is obligated for its debt. TRUE 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. FALSE 7. The MD&A should provide information that is prospective in nature. 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 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. FALSE 9-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 09 - Financial Reporting of State and Local Governments 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. FALSE
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

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.

Page1 / 5

Chap009a - Chapter 09 - Financial Reporting of State and...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online