Question

1. With respect to the preparation of fund basis financial statements, enterprise funds are considered to be major when which of the following conditions exist?

Multiple Choice

• Both When total assets, liabilities, revenues, or expenses of that individual enterprise fund constitutes 10% of the total for the enterprise fund category and When total assets, liabilities, revenues, or expenses of that individual enterprise fund are 5% of the total of the governmental and enterprise categories, combined required to be a major fund.

• Either When total assets, liabilities, revenues, or expenses of that individual enterprise fund constitutes 10% of the total for the enterprise fund category or When total assets, liabilities, revenues, or expenses of that individual enterprise fund are 5% of the total of the governmental and enterprise categories, combined would fulfil the requirements.

• When total assets, liabilities, revenues, or expenses of that individual enterprise fund are 5% of the total of the governmental and enterprise categories, combined.

• When total assets, liabilities, revenues, or expenses of that individual enterprise fund constitutes 10% of the total for the enterprise fund category.

2. Which of the following statements is correct with respect to the Statement of Cash Flow for a Proprietary Fund on the CAFR?

Multiple Choice

• GASB permits the statement to be prepared using the indirect method.

• The reconciliation of income to cash flows begins with total change in net position.

• The statement has four sections; Operating, Noncapital-related financing activities, Capital and related financing and Investing activities.

• Non-cash investing and financing transactions are not reported in the statement.

3. Which of the following is incorrect with respect to the Balance Sheet for Governmental funds?

Multiple Choice

• The excess of assets and deferred outflows over liabilities and deferred inflows is labeled fund balance.

• Governmental funds report capital assets net of depreciation.

• The statement is prepared using the current financial resources measurement focus and the modified accrual basis of accounting

• The total fund balance must be reconciled to total net position in the governmental activities column of the government-wide statement of Net Position.

4. the statistical section of the Consolidated Annual Financial Report (CAFR) typically presents ________ years of information in each table or schedule.

Multiple Choice

• 12

• 5

• 3

• 10

5. GASB provides guidance for determining when a primary government should include a legally separate organization in its financial report as a component unit. Which of the following statements would not require inclusion?

Multiple Choice

• If a government has controlling interest in a commercial business solely as an investment to earn income.

• The separate organization is fiscally dependent on the primary government and the related organization is fiscally dependent on the primary government.

• The primary government controls a voting majority of the other organization’s governing board or otherwise may impose its will on the organization and the related organization is fiscally dependent on the primary government.

• If a government has controlling interest in a commercial business in which it exercises operational control.

6.Which of the following is correct with respect to the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance?

Multiple Choice

• Reconciliation of the change in net position to the balance sheet is recommended but not required.

• Other financing sources are reported with revenues and other financing uses are reported with expenditures.

• The statement is prepared using the current financial resources measurement focus and the accrual basis of accounting.

• Revenues are reported by source, and expenditures are reported by character such as current, debt service and capital outlay.

7. A budgetary comparison schedule is required for?

Multiple Choice

• Each special revenue fund that has a legally adopted annual budget.

• Both The General Fund; and each special revenue fund that has a legally adopted annual budget are true.

• Neither The General Fund; nor each special revenue fund that has a legally adopted annual budget is true, this schedule is optional for all funds.

• The General Fund.

Answer 1

Question 1:-

The correct answer for the question is Option A - Both When total assets, liabilities, revenues, or expenses of that individual enterprise fund constitutes 10% of the total for the enterprise fund category and When total assets, liabilities, revenues, or expenses of that individual enterprise fund are 5% of the total of the governmental and enterprise categories, combined required to be a major fund. This statement is true. An enterprise fund is considered to be a major fund when it meets both the conditions , namely constituting 10% of the total enterprise fund category and when assets , liabilities, revenues or expenses of the fund are 5% of the total government and enterprise categories.

Option B is incorrect as it is not either but both the conditions are required to be satisfied in order to be considered an Enterprise fund.

Option C and Option D are incorrect as they are present as separate options but the correct answer is Option A as it includes both these options.

Kindly note that i have answered the first question per the HOMEWORKLIB RULESs. Request you to post the remaining question separately so that we can answer them as well. All the best and please let me know if you have any questions via the comments section .