Question

1. Which of the following is true regarding the Comprehensive Annual Financial Report?

a.The basic financial statements consist of the government-wide, the governmental fund, the proprietary fund, and the fiduciary fund financial statements (and the notes to the financial statements).

b.The government-wide financial statements include the Statement of Net Position, the Statement of Activities, and the Statement of Cash Flows.

c. Both are true

d. Neither is true

2. Which of the following is true regarding the proprietary fund financial statements?

a.The proprietary fund financial statements include the Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows.

b.The proprietary funds include enterprise, internal service, and permanent funds.

c. Both are true

d. Neither is true

3. Which of the following is true regarding the proprietary fund financial statements?

a.The proprietary fund financial statements include the Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows.

b.The proprietary fund financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting.

c. Both are true

d. Neither are true

4. Which of the following is true regarding fiduciary fund statements?

a. Fiduciary fund statements include the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position.

b. Fiduciary fund statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.

c. Both are true

d. Neither are true

Answer 1

Answer 1.

Option a is true.

Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements

Answer 2.

Option a is true.

It includes - Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows.

It does not include enterprise, permannet funds, etc so option b, c and d are automatically wrong

Answer 3.

Option c is true. Both are true

It does includes - Stat. of Net Position, the Statement of Rev, Exp, and Changes in Fund Net Position, and Statement of Cashflow. And it is based on accrual method. Thus both a and b are true.

Answer 4.

Option a is true.

It does includes - Stat of Fiduciary Net Position and the Stat of Changes in Fiduciary Net Position. Statement b is false so option c and d becomes invalid.