STATISTICAL Section (as modified by Statement 44)
Q. Which GASB Statement required the use of government wide financial statements prepared using the accrual method of accounting?
Search for: What statements are required for government wide financial statements?
Q. What are the three major sections of the Comprehensive Annual Financial Report?
A) The CAFR has three main sections: introductory, financial, and statistical.
- Financial Trends Information.
- Revenue Capacity Information.
- Debt Capacity Information.
- Demographic and Economic Information.
- Operating Information.
Q. What is in a CAFR?
A Comprehensive Annual Financial Report (CAFR) is a set of U.S. government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB).
Q. What are the characteristics of a proprietary fund?
The following are the characteristics of proprietary fund;
- It recommends the use of flexible budgeting over inflexible or rigid budgeting.
- It uses accrual basis method of accounting.
- It requires depreciation expenses and accumulated depreciation to be recorded and reported.
Q. What is the purpose of enterprise funds?
An enterprise fund identifies the total direct and indirect costs to provide the service and the sources and amounts of revenues that support the service for which a fee is charged in exchange for service.
Q. Which basis of accounting is used by enterprise funds?
accrual basis
Q. What is an enterprise fund in local government?
Local governments should analyze the services they are providing and determine if the fund types used are appropriate. An enterprise fund is a fund that may be used to report any activity for which a fee is charged to external users for goods or services.
Q. Which group of financial statements is prepared using the modified accrual accounting approach?
(3) Modified accrual accounting is used for fund-based financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government-wide financial statements.
Q. Which of the following are governmental funds?
Governmental funds include the General, special revenue, debt service, capital projects, and permanent.
Q. How are funds used?
Individuals, businesses, and governments all use funds to set aside money. Governments use funds, such as special revenue funds, to pay for specific public expenses.
Q. Why funding is needed?
Cash Flow – the day-to-day expenses of a business need to be met. Salaries, bills, insurance, amongst other things must be paid. The initial period of a business generates low revenue, hence requiring funding. These activities add to existing costs and need additional funding.
Q. What is a use of funds statement?
A sources and uses of funds statement, often referred to as a flow of funds report, provides a mechanism for reporting how a farm’s performance during an accounting period influenced and was influenced by major funding activities.
Q. What are the key distinguishing characteristics of fiduciary funds?
The distinguishing characteristic is that the party benefiting from the trust must be external to the government operating the trust. In pension and other employee benefits trusts a government is managing benefits that belong to government employees.
