CPFO Accounting Practice Exam

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• When is the use of an internal service fund appropriate?
• Revenue capacity information in the CAFR should primarily focus on which aspect?
• Which of the following should NOT be reported in the noncapital financing activities category?
• Should software upgrades be capitalized?
• When should the term transfer NOT be used in financial reporting?
• Which statement about the defeasance of debt is accurate?
• What classification applies to gains from the sale of capital assets that are not associated with impairment?
• What does GASB believe is necessary before mandating SEA reporting standards?
• What aspect of internal control is most associated with ongoing assessments?
• What is the expected outcome of audit committee oversight?
• Do reviewers need to unanimously agree that a report fully complies with all of the criteria for a Certificate of Achievement to be awarded?
• What happens to the status of capital assets charged to an internal service fund?
• What does an analytical review typically involve?
• What journal entry is appropriate when issuing $100 face value debt at a premium of $1 and an underwriter's discount of $2?
• In which situation is comparative data required to be presented?
• What is the general guideline for revenue recognition related to taxes?
• Which component should be adjusted to eliminate surpluses or deficits from internal service funds?
• Which of the following is NOT an appropriate treatment for the receipt of insurance proceeds in a governmental fund?
• Which of the following would properly be accounted for in an investment trust fund?
• How many separate audit reports does an independent auditor typically issue in connection with a Single Audit?
• Which statement about the worksheet used to convert governmental fund data is FALSE?
• Which of the following is NOT considered an essential element of a comprehensive framework of internal control?
• What section of the CAFR provides trend data useful for financial statement interpretation?
• What determines the powers of local governments in different states?
• Which of the following can lead to the conclusion that a component unit should be blended into the financial statements?
• How many reports does an auditor prepare in a GAGAS engagement?
• When reporting on cash and cash equivalents, what method is least likely to show direct traceability?
• How should a government maintain information on individual debt issues?
• How should the term "restricted" be interpreted in the context of reporting resources?
• When do generally accepted accounting principles (GAAP) require that fund balance be reserved for encumbrances?
• What is the appropriate classification for the proceeds of refunding bonds placed in escrow in connection with an advance refunding leading to defeasance?
• What is the effect of interfund loans on government-wide financial statements?
• What characterizes internal service fund expenses that involve parties external to the government?
• Which statement is false concerning revenue recognition for property taxes in governmental funds?
• What type of accountability focuses on the long-term sustainability and efficiency of governmental operations?
• When is an enterprise fund required by the government?
• Which element would NOT typically be found in the introductory section of a CAFR?
• Who would NOT be eligible to serve as a judge for a report submitted to the Certificate Program?
• Are NET ASSETS associated with the difference between general government assets and liabilities equivalent to the amount reported as net assets-governmental activities?
• What is a temporary impairment of a capital asset considered for reporting purposes?
• Which statement is FALSE concerning proprietary fund debt?
• What are prior period adjustments categorized as in financial reporting?
• How are changes classified in the statement of changes in fiduciary net assets?
• How should revenues used to secure debt be reported in the proprietary fund statement?
• Which of the following is NOT considered a component of the CAFR?
• Fines and forfeits are typically classified as which type of transaction?
• Which statement is true regarding the aggregate actuarial cost method for pension plans?
• What is the purpose of a combining statement in a CAFR?
• What is documented regarding disputed fines?
• Are budgetary comparisons required to be called statements?
• What balance should SEA strive for in reporting?
• True or False: A government can use an agency fund for amounts allocated to individual funds.
• Which type of revenue is typically associated with the funding of specific fiscal periods?
• When must a liability for pension-related debt be recognized in governmental funds?
• How should internal service funds be incorporated into government-wide financial statements?
• Which of the following best describes an enterprise fund's requirement?
• Which statement about the benefits of the Certificate Program is true?
• Which best describes the independent auditor's responsibility for required supplementary information (RSI)?
• Which statement is true regarding the recognition of employer pension contribution receivables?
• Which statement is true regarding a typical school district's classification as a single-program government?
• Is a typical conversion worksheet supposed to combine the preclosing trial balance for governmental funds and the closing balances of accounts for general government assets and liabilities?
• Which is true about the relationship between control-related policies and the control cycle?
• What is often the broader focus of an internal auditor compared to an independent auditor?
• What is required for resources in a special revenue fund to be reported as restricted net assets?
• In which situation would the use of an internal service fund be most appropriate?
• Which statement is true regarding the public sector's definition of a derivative?
• Which criterion ensures that a special-purpose government qualifies as a primary government?
• Which statement is TRUE regarding pension obligation bonds (POBs)?
• How much would be reported as a liability to property owners if escheat resources are accounted for in a private-purpose trust fund?
• How are loans between funds reported in financial statements?
• Which type of investment is NOT subject to fair value reporting other than for external investment pools?
• How should the gain or loss from the sale of a capital asset related to governmental activities be treated?
• What type of improvements should be capitalized for infrastructure assets?
• What financial reporting approach should be taken for unreimbursed costs incurred by governments for solid waste landfill monitoring?
• True or False: Fiduciary funds are included in the government-wide financial statements.
• Which statement is FALSE concerning discretely presented component units in basic financial statements?
• Which of the following is concerned with existing resources?
• What should happen to equipment used in connection with a landfill by the time it closes?
• What typically happens to lapsed encumbrances at the end of the budget period?
• When only a part of a debt issue is to be repaid from a proprietary fund's resources, how should that portion be reported?
• Which statement is true regarding internal service fund consolidation?
• How should contributions to endowments be reported in the government-wide statement of activities?
• Which statement regarding purpose restrictions is correct?
• How do governments often express their total outstanding debt?
• During what period is operational accountability most critical for governments?
• In government budgeting, when are encumbrances typically reappropriated?
• How should a public-entity risk pool account for a premium deficiency?
• Which of the following is NOT a part of the basic financial statement?
• What must be disclosed if receivables and payables do not crossfoot in financial statements?
• Which of the following would typically be included as part of a reserved fund balance?
• What is the minimum level of detail required for expenditures presented in the governmental fund statement?
• Which statement is FALSE regarding required disclosures for capital assets?
• What is a requirement for revenue recognition in the case of a formula grant?
• What does a rollover of a Bond Anticipation Note (BAN) indicate in governmental fund accounting?
• Regarding the recognition of receivables in governmental funds, which statement is TRUE?
• When do GAAP require disclosure about the maturities of investments related to debt proceeds?
• Which statement about the actuarial accrued liability in the statement of plan net assets is true?
• When should losses from litigation settlements be recognized?
• What is a requirement for fiduciary funds in the SSAP?
• Which of the following statements BEST describes the relationship between GAGAS and GAAS?
• True or False: The method selected to disclose interest-rate risk should reflect how that risk is actually managed.
• Which section of a comprehensive annual financial report (CAFR) typically would contain audited data?
• Which group developed generally accepted auditing standards (GAAS)?
• Which of the following types of liabilities would be reported in a governmental fund?
• What is required to be provided in the title of individual fund budgetary comparisons when the budgetary basis differs from GAAP?
• How should a government agency recognize a liability in the event of overdrawing from an investment pool?
• What level of detail is generally required for conduits in financial disclosures?
• Which of the following liabilities could appear in a governmental fund balance sheet?
• When might legally separate, tax-exempt entities be included as component units?
• What should the notes to financial statements indicate regarding investments in debt securities?
• Which of the following statements is true about budget encumbrances?
• True or False: Interest capitalization should cease during any significant cessation of construction.
• True or False: General obligation debt should never be reported as debt of an individual enterprise fund.
• What can indicate issues with cost reporting in an internal service fund?
• Which fund type would be appropriate for a government receiving revenue restricted to specific program expenses?
• For long-term debt outstanding for nineteen years, how many lines must appear in the debt service to maturity schedule?
• Which statement is TRUE regarding the reporting for escheat-related assets?
• What role do fiduciary funds play in financial reporting according to GAAP?
• What should the fair value of investments related to purchased put options reflect?
• How should airports treat passenger facility charges?
• Which statement about intra-activity transfers in government-wide financial statements is true?
• What should be the treatment for risk financing premiums received in excess of risk-related expenditures in a governmental fund?
• When a capital asset is transferred from one fund to another, how should it be reported?
• What terminology is recommended for budgetary variances to avoid misunderstanding?
• If a government participates in a bond pool investing in securities guaranteed by the U.S. government, what credit rating needs to be disclosed?
• Is it recommended for departmental reports submitted to the Certificate Program to always include management's discussion and analysis?
• Under which condition is blending appropriate according to GAAP?
• Which of the following is typically true about internal financial reports?
• What fund should be used to report escheat property held on behalf of another government?
• What is an effect of obtaining the Certificate of Achievement?
• Which report provides a structured overview of financial activities to the public?
• What is the appropriate focus for the proprietary fund statement of cash flows?
• Is a schedule of short-term debt required if none exists at fiscal year-end?
• What should be reflected if an individual fund draws out more resources than its position in an internal investment pool?
• What term describes the period during which a budget may remain in force to allow for the liquidation of encumbrances?
• Which of the following is NOT a required disclosure in the SSAP?
• What title is appropriately used for the government-wide statement of financial position?
• Which statement is false regarding statistical presentations for pension plans?
• Which statement is TRUE regarding reimbursement grants?
• What guideline could help avoid confusion when reporting entity-wide totals?
• Which of the following statements is TRUE regarding major fund reporting for proprietary funds?
• Which statement is FALSE about blended component units?
• Which of the following statements is true about performance measures?
• Which of the following statements is true concerning the required reconciliation of the claims and judgments liability?
• What category does the treatment of insurance recoveries fall under if they are not classified as extraordinary items?
• What is the expenditure threshold that triggers the need for Single Audits?
• What encompasses measures of accomplishment in the context of SEA?
• Which type of debt instruments is commonly associated with a "take-out" agreement?
• Which item would appear LAST in the proprietary fund statement of revenues, expenses, and changes in net assets?
• How should the net cumulative effect of a change in accounting principles be reported?
• What should any unamortized difference between the carrying amount of refunded debt and its reacquisition price be reported as?
• What is the key feature of crossover refunding?
• For which types of items do governments typically not use encumbrance accounting?
• When are individual fund financial statements appropriate to present?
• What is the Government Finance Officers Association's (GFOA) stance on mandatory auditor rotation?
• What is the key reporting difference for securities lending activities?
• What type of contributions are treated as expenses over the coverage period provided?
• Which standard is applicable to Single Audits?
• What should be reported as a separate component in the statement of revenues, expenses, and changes in net assets when there’s a change in accounting principles?
• Which of the following statements is TRUE concerning realized gains and losses of external investment pools?
• Which auditor's report would typically NOT provide an opinion?
• Is the modified approach for reporting infrastructure available for business-type activities?
• Which statement is FALSE regarding the reporting of investment-related income?
• When should an internal service fund be consolidated as part of governmental activities?
• What defines an ongoing financial interest in a joint venture?
• Which statement accurately reflects the relationship between modified accrual basis and measurement focus?
• According to GFOA, should every government establish an audit committee?
• Which of the following is considered an inappropriate treatment for assets held for the payment of future OPEB?
• Which statement regarding reportable conditions and material weaknesses is true?
• What should the reported value of redevelopment properties not exceed?
• Which statement is FALSE concerning accounting for contributions from contributors?
• When are shared governing bodies evaluated for component unit status?
• Who is primarily responsible for the adequacy of a government's framework of internal control?
• What is the purpose of documenting how events and transactions are processed in a control assessment?
• Which is true about segment disclosures for government activities?
• Which is NOT a required detail for debt refunding disclosures?
• In which circumstance is the use of an agency fund deemed appropriate?
• Which statement accurately reflects the amount that must be reported as basic functional expense in the government-wide statement of activities?
• Which part of the pension plan financial reporting must include investment-related expenditures?
• Which fund type uses the economic resource measurement focus?
• When recording the inception of a capital lease in governmental funds, how should it be treated?
• What must entities disclose regarding debt maturity schedules?
• How are internal control weaknesses typically communicated in the public sector?
• Is the use of the 'other financing sources and uses' category determined by professional judgment?
• At a minimum, how should fund balance for nonmajor governmental funds be reported in the governmental fund balance sheet?
• Do both modified accrual accounting and accrual accounting recognize expenditures/expenses when a liability is incurred?
• What action should be taken by a public-entity risk pool when reporting a deficiency in premium?
• How is the initial difference in a split-interest agreement recognized?
• Why may revenues related to passenger facility charges need to be estimated?
• Which types of CAFRs must include additional sections for eligibility in the Certificate Program?
• Which statement is NOT true about accounting for capital assets?
• How is interest expense treated within business-type activities in the government-wide statement of activities?
• When should pension trust funds report a receivable for unpaid employer contributions?
• What is considered a basic financial statement of a proprietary fund?
• How is depreciation expense treated in the government-wide statement of activities?
• What consequence does having significant administrative involvement in handling fiduciary assets imply?
• Which of the following statements BEST describes the appropriate application of a government's capitalization threshold to groups of smaller items?
• Which of the following is NOT a form of required supplementary information (RSI)?
• Which of the following would not qualify as part of restricted net assets?
• Which consideration is crucial when using cost data in government-wide statements for decision-making?
• In what situation may complete consolidation of transfers be impossible?
• True or False: Escheat assets held on behalf of other governments should be reported in a private-purpose trust fund if the government decides to use a separate fund for this purpose.
• Does the GFOA recommend every government has an internal audit function?
• If a single presentation cannot comply with both legal provisions and GAAP, what should be prioritized?
• What type of transactions are appropriate for agency funds?
• Which of the following is NOT a basic section of a typical CAFR?
• What is the appropriate treatment of a new component unit that qualifies at the end of the 10th month of the reporting entity's fiscal year?
• Which component is NOT required in financial trend schedules of the CAFR’s statistical section?
• Effective risk assessment must involve which component?
• What is one factor that allows governments to adjust capital asset estimates?
• When must associated debt be disclosed in relation to derivatives?
• Which of the following is NOT a true statement regarding special termination benefits?
• What is the typical adoption cycle for an operating budget in the public sector?
• What constitutes the basic financial statements for a government?
• Can an enterprise fund be used for activities that are partially funded through user fees?
• True or False: All proprietary funds may elect to consistently follow private-sector guidance issued after November 30, 1989.
• What happens if fines are contested and result in an appeal?
• Fund accounting is primarily designed to enhance which type of accountability?
• What is a common requirement for Single Audits performed under federal guidelines?
• Is it assumed that declines in service utility of capital assets are temporary?
• Who is primarily responsible for signing the letter of transmittal in a CAFR?
• True or False: Governments may use agency funds as internal clearing accounts for accounting purposes.
• Which statement is TRUE concerning eligibility requirements?
• What is the preferred approach for presenting assets and liabilities in the government-wide statement of net assets?
• Which item is classified as a cash deposit for custodial credit risk purposes?
• What must be noted when the CAFR is posted on a government website?
• What does the term "materiality" refer to in auditing?
• What describes the summary of significant accounting policies (SSAP)?
• How is a pass-through capital grant, intended for another government, classified in the statement of activities?
• In which situation would bad debt expense be reported?
• What is the purpose of accounting for easements as capital assets?
• How should an organization approach designing its internal control policies?
• What category must the government’s own resources in an investment pool be reported under?
• If a capitalization contribution period cannot be determined, what is the maximum period for amortization?
• What does NOT typically appear on the face of the proprietary fund statement of cash flows?
• Specialized derivatives disclosures are required for which of the following?
• Are accounting practices for exchange transactions and exchange-like transactions identical?
• How should debt related to a capital-type special assessment be classified when part is repaid by property owners and part by general taxpayers?
• Do certain private-sector standards enjoy level 1 authority in the context of GAAP for state and local governments?
• What distinguishes revenue recognition under accrual basis from modified accrual basis?
• How should tap fees, system development fees, and connection fees be reported?
• How is an easement classified under GASB Statement No. 51?
• What does GAAP require regarding lapsing encumbrances intended to be honored in the subsequent year?
• How should payments in lieu of taxes be classified?
• Which statement is true about the funding progress schedule for OPEB plans using the aggregate actuarial cost method?
• Who sponsors the Certificate of Achievement for Excellence in Financial Reporting?
• How frequently do governments prepare their general-purpose external financial reports to comply with GAAP?
• When adjusting governmental fund data for financial statement inclusion, what must be reversed?
• What is the appropriate measurement focus and basis of accounting for trust funds?
• Which characteristic is NOT essential in an effective audit procurement process?
• When should a governmental fund recognize a liability for rebatable arbitrage?
• What value should a government report for its share in a guaranteed investment pool if the fair value is less than the guaranteed value?
• Which statement regarding the statement of plan net assets for a public employer retirement system is false?
• What is included in a combining financial statement?
• For employers, what should not appear on their statements of position regarding pension benefits?
• When disclosure is required by GAAP about a situation, what must be included?
• In a reverse repurchase agreement, what assets should a government report?
• In the general fund, how should risk financing premiums received from other funds be treated?
• Which AICPA Ethics Rule primarily covers level 1 guidance?
• In the public sector, audits are generally classified into which two categories?
• What must be eliminated in preparing the government-wide statement of net assets?
• What is a key characteristic of account pools in risk financing?
• Which of the following is NOT a character classification?
• What is the focus of the operating statement of a proprietary fund?
• In which cash flow category are interest receipts normally reported?
• Which item is NOT recommended to be part of the letter of transmittal?
• Which of the following is NOT considered a budgetary account?
• Which of the following columns is required in government-wide financial statements?
• What impact does a fiscal funding clause have on an agreement's classification as a capital lease?
• What type of assurance does the independent auditor provide regarding financial statements?
• What is the threshold for concentration risk disclosure?
• What is the minimum frequency for condition assessments performed by governments on infrastructure assets?
• What defines the legal level of budgetary control in government budgeting?
• On what basis does the independent auditor express an opinion in the context of basic fund financial statements?
• What should be the basis for classifying liabilities in the classified approach?
• If a government has a capital asset not reported on the statement of net assets, how should related debt be reflected?
• Where should the reconciliations between governmental fund financial statements and governmental activities columns be located?
• What must be included when treating overhead capital asset depreciation in expenses?
• Does the Yellow Book permit the use of AICPA attestation standards for performance auditing?
• In GAGAS audits, how are reportable conditions communicated to management?
• Which budgetary disclosure would always be reported in the notes to the financial statements?
• Should employers report unfunded actuarial accrued liability for pension benefits in their statement of position?
• Which of the following often is the only practical means of determining if data in the financial statements are complete?
• In the statistical section of the CAFR, debt service expenditures are typically shown as a ratio to which category?
• What percentage of capital-related debt is allowed to be expended on non-capitalized items?
• Which of the following is NOT true regarding the presentation of major individual component units?
• What additional section is commonly presented in CAFRs by pension plans?
• What is necessary when addressing financial reporting that does not demonstrate compliance?
• Is there currently "level 2" guidance outstanding on the GAAP hierarchy for state and local governments?
• Which statement is included within the BASIC financial statements for agency funds?
• Do other financing sources and uses associated with debt issuance need to be eliminated when converting financial statements?
• Which of the following items is NOT a required component of the budgetary comparison mandated in connection with financial statements?
• True or False: The SSAP must disclose specific types of major revenue sources meeting the availability criterion in governmental funds.
• What is the significance of a shared governing body in financial reporting?
• Which is an outcome that SEA reporting aims to accomplish?
• In which GASB pronouncement was there a commitment to expand reporting to include service efforts and accomplishments (SEA)?
• Which role must determine the effectiveness of design controls in an internal control system?
• Which of the following is NOT a basic section of a comprehensive annual financial report (CAFR)?
• What is the concept of in-substance defeasance primarily applicable to?
• What distinguishes special items from other financing uses in financial reporting?
• How should asset balances be reported when reassigning between pension plans?
• What information should be reflected in the statistical section concerning property tax levies?
• Property taxes are classified as which type of transactions?
• Is the CAFR appropriate for meeting SEC Rule 15c2-12 disclosure requirements?
• When should material violations in budgetary comparisons be disclosed?
• What is required for assets to be reported as capital assets according to accounting standards?
• What term is used to describe the minimum information that must be included within a financial report for compliance with GAAP?
• Which type of revenue is concerned with taxes based on consumption or earnings?
• How should grantor reimbursements of indirect costs be reported?
• What does GASB Statement No. 34 stipulate regarding the reporting of designations?
• What does the term "earmarking" refer to in the context of governmental financial reporting?
• Which statement about cash flows is accurate?
• When should property taxes destined for debt service be recognized as revenue?
• What balance should be reported for internal balances in the primary government total column of the government-wide statement of net assets?
• Which statement is true regarding budgetary comparisons?
• How do tap fees typically relate to the cost of connecting new customers to the system?
• Which of the following is NOT a consideration in determining if an entity qualifies as a component unit?
• What might GASB do regarding the reporting of SEA?
• Which framework does GAGAS utilize as its basic structure?
• What is the GFOA-recommended length for an audit contract?
• How are a government's deposits considered collateralized if a single-institution collateral pool is used?
• How should charges for services be reported if generated in one function but legally restricted for use in another?
• What is essential regarding the notes to financial statements for a single-employer plan?
• What is the proper accounting treatment for states participating in the federal food stamp program?
• Which statement is TRUE regarding private-purpose trust funds?
• Can a government receive an extension for submitting their Certificate Program application in two consecutive years?
• What should the letter of transmittal ideally communicate?
• Why are criteria for identifying component units important?
• What must be included if a discretely presented component unit does not issue a separate report?
• What classification should be given to loans that are not expected to be repaid within a reasonable period?
• Which of the following statements regarding segment disclosure is true?
• Which statement accurately reflects the description of the substantive plan used for projecting costs related to other postemployment benefits (OPEB)?
• How are purpose restrictions typically reported in financial statements?
• A local government receiving a state-mandated grant for road upgrades is an example of which type of transaction?
• If a government issues debt for capital acquisition by other governments, how should this debt be reflected in the governmental fund?
• Under what condition must budgetary comparisons be presented as RSI?
• Which fund does a government typically use for managing fees and charges associated with specific public services?
• Which of the following is true regarding lotteries in accounting?
• What does GASB refer to when it discusses performance measures in external financial reporting?
• How should individual financial statements be grouped for presentation?
• What must governments provide to demonstrate their legal debt margin?
• Which accounting standard outlines the scope of general-purpose external financial reporting?
• What is considered an eligibility requirement in the context of resource control transfer?
• When is a legally separate entity listed as a component unit of a primary government?
• How should a government describe the proprietary fund statement of position?
• What does the SSAP need to indicate regarding omitted data?
• How should a governmental fund report a long-term loan from another fund?
• What is the preferred format for the government-wide statement of net assets?
• Which type of notes must ALWAYS be treated as current liabilities in the fund receiving the proceeds?
• How should proceeds of no-commitment special assessment debt be reported?
• Where should RSI typically be located in financial reports?
• What type of fund is used when a government operates a maintenance garage for all vehicles and charges departments?
• Which financial statement shows the liabilities related to certain obligations in governmental funds?
• Which of the following may be accounted for in an agency fund?
• Which of the following best explains the purpose of the auditor's opinion on financial statements?
• Which of the following must be included in the government-wide statement of activities?
• What is the significance of capitalization thresholds in financial reporting?
• How should an interfund loan be classified by the lender fund?
• Which statement concerning the capitalization of interest is FALSE?
• Which option properly describes the appropriate presentation format for significant component units?
• What is integral to identifying and addressing weaknesses in control systems?
• Where may the reconciliation between cash flows from operating activities and operating income be reported?
• How should budgetary comparisons be reported if there is a significant variance?
• How many reports does an independent auditor generally issue for a GAGAS financial audit?
• What is one potential consequence of not segregating incompatible duties?
• Are shared revenues considered a tax from the perspective of school districts?
• What does the term 'basis of accounting' clarify?
• What is the minimum number of lines required for disclosing debt service to maturity?
• Are ongoing participants in the Certificate Program required to address prior year's comments to remain eligible?
• For which of the following governmental funds with an appropriated budget would a budgetary comparison be required?
• Under GAAP, how should nondepreciable capital assets be reported?
• Which item is always included in the operating statement of a governmental fund?
• Which type of fund typically includes resources held for the benefit of specific individuals?
• What entity must a government reference when valuing its share in an investment pool under SEC guidelines?
• How do governments sometimes further categorize appropriations?
• Which of the following is NOT evidence of fiscal dependence?
• The contents of special-purpose financial reporting are typically determined by which factor?
• Do governments share the same financial objectives for all their activities?
• Which of the following is NOT a sufficient basis for recording an asset for pension contributions receivable?
• Which budget type accounts for ongoing government expenses?
• Which of the listed funds would not typically be associated with external investment pools?
• Which of the following statements accurately describes eligibility for grants?
• In government-wide financial statements, which basis of accounting and measurement focus is used?
• What applies to the recognition of contributions in government financial statements?
• Which statement about risk assessments is FALSE?
• In which situation should a capitalization contribution to a public-entity risk pool be treated as a deposit?
• What is the proper treatment of restricted cash in the proprietary fund statement of cash flows?
• In the context of governmental funds, how are contributions from property owners characterized?
• How are jointly governed organizations reported in the financial statements of participating governments?
• When is it necessary to report the current and noncurrent portions of liabilities separately?
• Operational accountability refers to which of the following responsibilities of governments?
• What method is ideal for describing budgetary variances?
• What is the minimum level of detail for reporting business-type activities in the government-wide statement of activities?
• Who is NOT considered a primary user of general-purpose external financial reporting?
• What is the correct treatment for the proceeds from the sale of capital assets in a governmental fund?
• What assets should a government report in a securities lending transaction?
• How should land associated with infrastructure be reported?
• What is the classification of shared sales taxes from the perspective of the ultimate recipient?
• Under the classified approach, how are restricted assets used for repaying maturing debt classified?
• Which of the following should be accounted for at fair value?
• From an internal control perspective, when is a duty considered incompatible?
• Which amount is not usually relevant for custodial credit risk evaluation?
• Which statement is TRUE regarding employers and on-behalf benefit payments?
• Which of the following statements is true regarding the fund types used in governmental accounting?
• Which principle emphasizes that encumbrances at fiscal year-end should be carried over to the next fiscal year if they are not fulfilled?
• What is the MINIMUM number of paragraphs found in any independent auditor's report?
• Where are state unemployment benefit plans accounted for?
• What is the overall goal established by NACSLB for public sector budgeting?
• Which of the following is false concerning the statement of changes in plan net assets for a public employee retirement system?
• Is it true that a primary government can participate in the Certificate Program without including its component units in its CAFR, as long as disclosure is provided?
• How should revenues from operating-type special assessments be treated in the activities statement?
• True or False: If a government temporarily invests taxes collected on behalf of other governments, it should report those resources in an investment trust fund.
• What aspect did the GASB highlight regarding the nature of SEA measures?
• Which of the following best describes the proper reporting for internal balances in government-wide financial statements?
• What classification is appropriate for administrative obligations in expenditure-driven grants?
• Which of the following is NOT a difference between FASB Statement No. 34 and FASB Statement No. 62?
• Who holds the primary responsibility for the fair presentation of financial statements?
• What do encumbrance amounts typically reflect?
• Should the effects of most interfund activity within the primary government be eliminated in financial reporting?
• Which of the following is typically not a characteristic of capital assets?
• Which element relates most closely to the concept of "corporate culture"?
• Should a lease with a fiscal funding clause automatically disqualify it as a capital lease?
• Which statement is TRUE regarding the use of enterprise funds?
• Which treatment is NEVER appropriate for a Section 457 deferred compensation plan?
• Which of the following statements regarding fees in an internal service fund is TRUE?
• Which of the following statements is TRUE about the pension (and other employee benefit) trust fund?
• What is a key focus of business-type activities compared to governmental activities?
• What is the proper treatment of conduit debt?
• In which situation is the presentation of separate government-wide financial statements REQUIRED?
• How is fair value defined in relation to investments?
• When accounting for idle construction funds in joint ventures, how should they be treated?
• For which types of investments is a credit rating required to be disclosed?
• What treatment is appropriate for tax revenues related to tax-increment financing?
• If a private-purpose trust fund is used to account for escheat property, what amount should be reported as a liability?
• Which of the following is an example of a trust fund activity?
• How is investment income treated in regards to program revenue?
• Why are accrued liabilities recognized in government funds only when they mature?
• Which type of budget is most commonly encountered in the public sector?
• In a GAGAS audit, how are noncompliance incidents typically reported?
• Which of the following is a characteristic of component units?
• What type of transactions does a motor fuel tax exemplify?
• In the government-wide statement of activities, special items and extraordinary items should be:
• What is pension-related debt defined as in relation to the plan?
• What is the primary purpose of GAAP?
• Which of the following would you find in the investment section of a PERS' comprehensive annual financial report?
• What is the critical aspect of a favorable control environment?
• What is a key reason for measuring performance in the public sector?
• How many basic auditing standards are included in GAAS?
• What is the reporting requirement for assets and liabilities from securities lending transactions?
• What should reserved fund balance reflect according to accounting principles?
• Which fund type should be utilized for restricted resources that are required to be permanently invested?
• Which of the following is an acceptable method of estimating the historical cost of capital assets?
• Which financial statement reflects transfers between governmental activities and business-type activities?
• How should budgetary comparisons mandated in connection with basic financial statements be described?
• What is NOT an appropriate use of a capital projects fund?
• Which statement regarding primary governments is FALSE?
• Which of the following should NOT be included in an agency fund?
• What is the correct treatment for extraordinary items in the financial statement?
• The GASB's development of SEA measures aims to improve what aspect of government service?
• Is there a requirement to present the original budget for budgetary comparisons in the CAFR?
• In which scenario would there be a potential for custodial credit risk?
• If the primary government issues debt to be repaid by general taxpayers and the proceeds are delivered to an enterprise fund, how should this debt be reported in governmental funds?
• Why should the documentation of policies and procedures explain their purposes?
• Are governmental funds required to report a payable for operating leases with scheduled rent increases?
• What should the cover of the CAFR include regarding the primary government?
• What type of risk-financing arrangement results in the pooling or transfer of risk?
• How should a negative NPO be reported?
• According to GASB, which approach might be taken in mandating SEA reporting?
• What opinion would an auditor likely give if a government fails to present required fund financial statements?
• What is the condition under which a potential misstatement is considered material?
• How should revenue collections that are delayed due to unusual circumstances be treated?
• Which section of a CAFR is particularly important for evaluating a government's economic condition?
• In what circumstance may an extension of 30 days be granted for a Certificate Program application?
• Which of the following would lead to treating a contribution to a public-entity risk pool as a deposit?
• Are there substantive differences between financial auditing and performance auditing?
• Which of the following statements about SEA measures is FALSE?
• Should improvements for infrastructure assets that do not enhance functionality be capitalized?
• What factor is key in determining the likelihood of a control failure?
• What is the major difference between the accounting for proprietary funds and governmental funds?
• If a portion of property taxes is dedicated to financing pension benefits, where should those revenues be reported?
• Which statement is true regarding the capitalization of interest for a construction project financed with a grant?
• In which situation would the reporting of an asset NEVER be required for prepaids?
• Which type of grant always qualifies as program revenue?
• In what situation are restricted assets most commonly encountered in the public sector?
• Which of the following statements is FALSE concerning major fund reporting for governmental funds?
• At what level of detail must budgetary comparisons be presented within the CAFR for a nonmajor special revenue fund with a legally adopted annual budget?
• What portion of an employer's liability for compensated absences should be reported as an expenditure in a governmental fund?
• What is the accurate journal entry for debt service principal payments related to demand bonds?
• When is it inappropriate to recognize an expenditure in the current fiscal period for debt service principal and interest payments due early in the subsequent fiscal period?
• How should governments value their position in a Securities and Exchange Commission 2a-7-like investment pool?
• How are contributions from pool participants typically handled in a public entity risk pool?
• What must be recognized as a liability related to special termination benefits?
• Which entry would typically appear in the statement of changes in net assets of a public-entity risk pool not pooling or transferring risk?
• Financial plans are most commonly associated with which of the following fund types?
• How should amounts owed by one governmental fund to another be treated on the financial statement?
• Which statement is FALSE regarding an employer's liability for compensated absences?
• Which of the following is NEVER properly classified as reserved fund balance?
• Which of the following reports is commonly associated with GAGAS?
• If a government provides an entity-wide total column, how may items be reflected in that column?
• What is one of the outcomes of making adjustments for the government-wide statements?
• Which of the following statements is FALSE regarding the application of the concept of materiality?
• What is the practical effect of a government electing to use the modified approach for infrastructure reporting?
• Which ratio should be reported in connection with debt limitations in the CAFR?
• What describes the applicability of private-sector pronouncements to proprietary funds after November 30, 1989?
• In the context of proprietary fund financial statements, what element usually precedes the equity changes in net assets?
• Which of the following is NOT a goal of sound control-related policies?
• How should changes in net assets be treated in financial reporting?
• In which type of elimination might a separate column be used?
• What is the required journal entry for the inception of a capital lease with minimum lease payments present value of $96?
• In which scenario can the costs of capital assets be recovered effectively through internal service funds?
• Which of the following is NOT an indicator that a capital asset may be impaired?
• What must be reported as a fund liability?
• What should the goal of an internal service fund be?
• Which of the following correctly denotes the function of capital projects funds?
• What does a reserved fund balance indicate about legal restrictions?
• Which cost is normally NOT capitalized as part of software developed for internal use?
• According to GFOA, where should performance measurement be incorporated?
• Which group created a framework for public sector budgeting that focuses on performance evaluation?
• Which of the following statements is true regarding modified accrual accounting?
• What amount should be reported as an expenditure in a governmental fund related to trade-ins of capital assets?
• Which of the following is NOT an acceptable method to demonstrate the traceability of cash and cash equivalents?
• In financial reporting, what is the main focus for evaluating foundations as component units?
• In financial reporting, what is emphasized over legal form?
• What type of budget is most likely to not have annual appropriated budgets?
• Which characteristic does NOT differentiate trust funds from agency funds?
• Which of the following BEST describes the issuance of a comprehensive annual financial report (CAFR)?
• What is the ideal size for an audit committee as per standard recommendations?
• Which of the following statements is TRUE regarding internal auditors?
• In which situation might charter schools be included as component units?
• What can affect the estimated useful life assigned to the same type of capital asset by different governments?
• Is it generally recommended that a single availability period be used for revenue recognition?
• Which organization does FASAB not operate under?
• When should payments in lieu of taxes be recognized as revenue?
• What is the primary purpose of the SSAP?
• Are all state and local government audits required to adhere to GAGAS?
• What is a benefit of presenting comparative data in management's discussion and analysis?
• What components should be reported as other financing sources when issuing debt in a governmental fund?
• Under what condition can the actuarially determined annual required contributions be considered an expense?
• What is the implication of shared revenues for school districts?
• Which of the following statements is false regarding the contributions of capital assets within the primary government?
• In which situation would interest expense be included as a direct expense of a program?
• True or False: The accounting prescribed for IRC Section 457 deferred compensation plans is also suitable for other types of deferred compensation plans.
• Which report is specifically prepared in accordance with Circular A-133?
• When is it appropriate to use a fund other than the general fund?
• Which fund type should be used for the separately issued report of a public-entity risk pool?
• True or False: In foreign currency risk, separate disclosure is required for each currency.
• How is the effectiveness of an audit committee typically measured?
• Must a government use the general fund for its risk financing activities?
• In which of the following situations is a reconciliation between GAAP and the basis of budgeting NOT required?
• What term describes amounts that may be subject to refund to a grantor according to the auditor?
• Which of the following is not a required disclosure in the SSAP?
• What is included in the calculation of the liability for claims and judgments?
• When is the early recognition option for debt service expenditure recognition NOT appropriate?
• What is the ideal method for segregating incompatible duties?
• Which of the following types of debt may require bonding?
• How is the concept of substantive similarity of boards evaluated?
• Which type of government is never required to report information on overlapping governments in the CAFR?
• Which statement about financial statements is true?
• What typically characterizes the relationship between reserved fund balance and restricted net assets in governmental activities?
• Which of the following statements is FALSE regarding the treatment of school lunch programs?
• When would interest incurred during construction NOT be included in a capital asset's historical cost?
• Who is ultimately responsible for the adequacy of a government's framework of internal control?
• How should individual internal service funds be reported in government-wide financial statements?
• What type of report is ineligible for submission to the Certificate Program?
• How many specific objectives organize the information in the statistical section of the CAFR?
• What does fiscal independence mean for a government?
• Which of the following best describes the relationship between payments in lieu of taxes (PILOTs) and goods or services provided?
• What advantage do technological innovations provide in accounting documentation?
• What should be disclosed regarding conduit debt issues?
• In the context of governmental accounting, operational accountability emphasizes what aspect?
• What is the consequence of improper classification of component units?
• How should a government value its participation in an investment pool operating under SEC Rule 2a7?
• When should revenue be recognized in relation to contributions to endowments?
• Is it ever acceptable to report fully depreciated capital assets?
• Can governments reserve a portion of fund balance equal to appreciation in the fair value of investments?
• In the government-wide statement of activities, which comes first?
• What is ordinarily the measure of pension expense when an enterprise fund sponsors a single-employer defined benefit plan?
• How should assets and liabilities be presented in the proprietary fund statement of position?
• What type of charges typically lead to revenue recognition in an internal service fund?
• How are costs associated with multiple accounting treatments handled in SSAP?
• What is required for condition assessments of infrastructure assets by governments?
• How should a public-entity risk pool account for capital contributions?
• In a current refunding scenario, which term would most likely be encountered?
• What aspect should be included in the submission package by governments participating in the Certificate Program?
• What is the appropriate method for calculating a capital asset impairment associated with obsolescence?
• What does the CAFR need to include to be compliant with GAAP?
• Which situation typically results in the greatest number of required pension disclosures?
• When should revenue be recognized for special assessments after project completion?
• Which statement is true regarding the composition of audit committees?
• How should cash flows associated with program loans be reported?
• What is a requirement for a department’s CAFR to be eligible for the Certificate Program?
• The estimate for landfill costs needs to consider which of the following factors?
• Which type of debt is often not reported as a liability in the governmental fund receiving the proceeds?
• What is a requirement for the scope of the CAFR regarding component units?
• In what situation can independent auditors rely on the work of internal auditors?
• How many categories are generally accepted in GAAS?
• What is NOT evidence that a government is holding assets in a fiduciary capacity?
• When should an asset be recognized for amounts related to the master settlement agreement with tobacco companies?
• How is unused sick leave converted to defined benefit OPEB treated in terms of accrued liabilities?
• How is any portion of proceeds from capital-related debt set aside for debt service reflected in net assets?
• What defines a general obligation debt in the context of special assessments?
• What is the treatment of an internally generated surplus or deficit in an internal service fund in government-wide financial statements?
• Which statement is false regarding revenue recognition for income taxes in governmental funds?
• What is one of the "overarching principles" for evaluating auditor independence according to the Yellow Book?
• What is the primary role of an internal auditor?
• What must be considered to measure custodial credit risk in cash deposits?
• When must a guarantee of indebtedness first be disclosed?
• When escheat resources are accounted for in the general fund, what amount would be reported as a liability to property owners?
• What should be reported as an expense if the capitalization contribution period is not determinable?
• Which of the following is true regarding the fair value of assets in a split-interest agreement?
• Which of the following is NOT an appropriate classification for a capital asset impairment?
• On which financial statement may designations be reported?
• How would a government's share of a joint venture's income or loss typically be reported?
• Which accounting basis is used for the net position obligation related to unfunded pension contributions?
• Is a residual claim to the assets of a joint venture considered evidence of an ongoing financial interest?
• True or False: Securities held in "street name" or "nominee name" are not held "in the name of the government" for custodial credit risk analysis.
• Which is a characteristic feature of proprietary fund reporting?
• Which statement is true regarding transfers of capital assets in government-wide financial statements?
• Which statement is TRUE regarding GASB's perspective on output and outcome measures?
• Can governments net interest incurred and earned in reverse repurchase agreements?
• How should a government report its guaranteed share in an investment pool if it's guaranteed not to fall below a certain amount?
• Which of the following types of liabilities would be reported in a governmental fund?
• In the context of interfund services, which category is correctly associated with program-related services?
• What should happen with material losses from the sale of capital assets in governmental activities?
• How should the unspent proceeds of debt for capital acquisition be reflected in net assets?
• Which of the following would be shown in the operating statement of a proprietary fund?
• Regarding income and expenses from securities lending activities, how should they be reported?
• What is the primary difference in management involvement between trust funds and agency funds?
• Which section of the Comprehensive Annual Financial Report (CAFR) contains information on individual funds not reported separately?
• What is indicated by an adverse opinion in an auditor's report?
• Which investment must be reported at fair value by entities other than external investment pools?
• Can adjustments involving revenues and expenditures from prior periods be made to the fund balance account in a typical conversion worksheet?
• Which statement is true regarding performance measurements in the public sector?
• All changes in net assets in the statement of changes in fiduciary net assets are classified as which of the following?
• In what manner are payments in lieu of taxes (PILOTs) typically classified?
• How should an equity interest in a joint venture be reflected in fund balance?
• How should the proceeds of refunding bonds used to redeem debt be categorized in the statement of revenues, expenditures, and changes in fund balances?
• What is the proper categorization of the nonreciprocal movement of resources from the primary government to a discretely presented component unit?
• What does effective documentation generally enhance in an organization?
• Where are investment-related expenses reported in fiduciary statements?
• What type of description is required for the general fund column?
• Where did GASB decide SEA data should be reported?
• Access to assets and records should be determined by what factor?
• Is there a single correct method to subdivide control-related policies and procedures?
• In the context of a bond pool, what is the relevant credit rating to disclose?
• If a government includes other governments' resources in an investment pool, how should the external portion be reported?
• What does the financial section of a CAFR include?
• What defines a time requirement in eligibility requirements?
• Which of the following is NOT a criterion for a joint venture?
• For the proceeds of capital asset sales, what is a possible classification when the amounts are material?
• What is the maximum increment for disclosing lease payments?
• Which statement reflects GASB's view on reporting performance accountability?
• Charter schools typically meet the criteria for inclusion as a component unit of a school district. True or False?
• How should discounts related to long-term debt issuance be treated in governmental funds?
• Which statement is FALSE regarding accounting for claims and judgments?
• Which of the following is NOT a criterion for a special-purpose government to qualify as a primary government?
• Which statement is true regarding GAAP and pension plans?
• Which of the following is a requirement for fair value reporting of investments?
• Which entity is not eligible to participate in the Certificate Program?
• Which of the following statements is true regarding the accounting for student activity funds?
• Which of the following statements is TRUE?
• Which group is responsible for setting generally accepted government auditing standards (GAGAS)?
• How should a government report an internal investment pool?
• Which of the following is NOT eligible for submission to the Certificate Program?
• In the government-wide statement of activities, how are tax-increment revenues classified?
• When no-commitment special assessment debt proceeds are received for construction, how should they be classified in a governmental fund?
• Which of the following does NOT need to be removed during the consolidation process?
• How does the focus of internal auditors typically compare to that of independent auditors?
• How should a government that participates in a public-entity risk pool treat the premiums it pays to the pool?
• Investment income generally qualifies as what type of revenue?
• Which statement about the inclusion of enterprise funds in government-wide financial statements is accurate?
• What is required disclosure in the case of debt refundings?
• Which of the following may NOT be reported as an asset in a governmental fund?
• What results when an internal service fund supports both governmental and business-type activities?
• What is managed with regard to internal service funds as under GAAP?
• Is the cost of inventories typically written down to reflect market changes?
• What does it mean when expenditures do not equal the amount of the related encumbrance?
• What is a key goal of the independent auditor of the financial statements?
• Where must depreciated capital assets be distinguished from significant capital assets not being depreciated?
• In reporting financial trends, what is an important guideline for presenting net assets?
• What classification is appropriate for amounts equal to the present value of minimum lease payments for a capital lease?
• In which situation is a fiduciary fund used?
• When should an expenditure related to rebatable arbitrage be recognized in a governmental fund?
• Which statement BEST describes the classification of investment income in the proprietary fund statement of revenues?
• Which of the following is NOT a criterion for classifying an entity as a "state or local government" under GAAP?
• Regarding fines and forfeitures, which statement is TRUE?
• In which situation would the donation of a capital asset that a government intends to resell be reported?
• How should on-behalf payments for employees be recognized?
• A government that uses a fund to hold and manage taxes assessed on behalf of other jurisdictions operates which type of fund?
• What is a pervasive characteristic of a sound internal control framework?
• When should revenue be recognized for pass-through grants?
• What general accounting principle applies to the classification of the proceeds from bond issues?
• Which statement is true regarding the preparation of government-wide financial statements?
• Is the debt service character classification commonly utilized in debt service funds?
• What should be the focus of a fund balance policy within a governmental entity?
• What should any governmental fund liability be reported as?
• In the context of agency funds, what does GAAP require regarding cash collections?
• Which items should the SSAP include?
• Which of the following is a key eligibility requirement for an expenditure-driven grant?
• When components are reported in separate columns, what kind of components are they typically?
• Do financial auditing and performance auditing serve different goals and techniques?
• Annual appropriated budgets are LEAST FREQUENTLY encountered in connection with which of the following fund types?
• In a public-entity risk pool, if an annuity contract is purchased for a claimant, how should it be reported?
• Which situation includes the potential component unit as part of the financial reporting entity based on board appointment?
• When estimating landfill closure and postclosure care costs, which statement is FALSE?
• How many broad categories can funds used by governments be classified into?
• When must significant contingent liabilities first be disclosed?
• What distinguishes agency funds from other fiduciary funds?
• What does it mean if fiduciary funds must still be reported for a legally separate entity?
• What is the role of a vulnerability assessment in evaluating control cycles?
• What is the appropriate accounting treatment for the difference between the carrying amount of refunded debt and its acquisition price in the public sector?
• In which scenario would a receivable NOT be recognized in a governmental fund?
• Which factor determines the necessity to report interfund transfers within an internal service fund?
• Which of the following types of information will be furnished automatically by an integrated budget?
• If demand bonds are reclassified as a short-term liability, should an other financing use be reported?
• How are the investments in a 2a-7-like investment pool reported in the external investment pool's report?
• To calculate net general obligation debt, which amount should be subtracted from total general obligation debt?
• What type of revenue transaction results from government assessments on non-governmental entities?
• What is primarily used to highlight the natural links among policies and procedures in control evaluations?
• Which act has significantly promoted the use of GASB standards in the public sector?
• In a GAGAS audit, is an auditor's letter to management always necessary?
• What is the primary purpose of popular annual financial reporting?
• How would a government report participation in a joint venture involving its governmental activities?
• How should interest income be classified by public-entity risk pools?
• What does the Government Finance Officers Association recommend as the MINIMUM capitalization threshold for financial reporting?
• Which consideration helps determine if debt should be reported as a liability of a proprietary fund?
• How is the use of capital projects funds characterized under GAAP?
• What is the typical monitoring period required for landfill operators after closure?
• Regarding references to notes in combining financial statements, which statement is true?
• In exchange-like transactions, must the values exchanged be equal?
• What interest rate should be used for variable rate debt in the debt service to maturity schedule?
• Which type of expenditures must be eliminated in the government-wide statement of activities?
• Required supplementary information for pension plans is typically presented for how many years?
• What governs whether a fund must be used for a particular activity beyond the general fund?
• What type of fund is primarily used when a government imposes user charges to cover sanitation services?
• What type of tax does personal income tax exemplify?
• When determining amortization for assets associated with a landfill, what should be considered?
• What accounting treatment applies to unused sick leave balances that don’t qualify for payout upon employee termination?
• Which of the following statements BEST describes the appropriate application of composite depreciation in the public sector?
• In what situation should expenditures or liabilities related to operating leases with scheduled rent increases be recognized in governmental funds?
• Which fund type utilizes the current financial resources measurement focus?
• In the consolidation of fund data for government-wide financial statements, which statement is false?
• Which of the following liabilities may NOT be recognized in a governmental fund until it is due and payable?
• What fund type typically requires budgeting on a project-length basis rather than an annual basis?
• Which of the following should NOT be included in estimated landfill closure and postclosure care costs?
• Is it possible for a legally separate organization to be included as a component unit without meeting standard tests?
• Which asset type could NOT be included on a governmental fund balance sheet?
• Which fund type is used when a government receives a restricted grant and chooses not to include it in the general fund?
• What is the limit on the number of individual funds a government may use for accounting and financial reporting purposes?
• How are gains or losses recognized when asset balances are reassigned between pension plans?
• What typically happens to inventories that are deemed unusable?
• Can an entity that is not legally separate qualify as a component unit?
• What is the definitive factor in determining which government should report a given capital asset on its statement of position?
• Which statements are true regarding the reporting of financial information?
• In what scenario should combining financial statements be presented first?
• When consolidating fund data, what is the correct treatment for transfers between different funds?
• What is the expected standard for reporting internal service funds that primarily provide services to governmental activities?
• What should be accounted for as an other financing use?
• Which of the following correctly distinguishes between governmental funds and proprietary funds?
• What is required for participation in the Popular Annual Financial Reporting Program?
• Which auditing process is required under the Single Audit Act?
• What classification do shared revenues fall under from the perspective of benefiting school districts?
• Which part of the financial statement primarily focuses on governmental activities?
• To what is the unfunded actuarial liability compared in the schedule of funding progress for pension plans?
• Which term describes transactions between primary government and outside parties in financial reporting?
• What should be included in the statement of fiduciary net assets?
• Operating grants are categorized as which type of revenue in proprietary fund statements?
• What is a true statement regarding the recognition of investment income under the modified accrual basis?
• Should the general fund of a financial reporting entity include the general fund of blended component units?
• Which type of financing activities includes borrowing and repayments not clearly attributable to capital purposes?
• Which type of refunding would typically NOT lead to the immediate elimination of refunded debt from the statement of net assets?
• Interest on debt legally restricted for use in a specific governmental function is typically reported how?
• Which statement about major revenue sources in governmental funds is true?
• Which statement best describes the appropriate use of an agency fund for pass-through grants?
• What does the need for a formula in cost allocation typically indicate?
• How should the difference between assets and liabilities in a trust fund be reported?
• Which item would NOT be reported as general revenue in the statement of activities?
• The purpose of a comprehensive framework of internal control primarily ensures what?
• Can an entity be a component unit of more than one primary government?
• Which of the following statements about internal control frameworks is true?
• Which of the following must be included in government-wide financial statements?
• How should quantitative materiality be assessed in the context of government-wide financial statements?
• What is the nature of the appropriated budget in government accounting?
• Where should a net pension obligation (NPO) be reported?
• In which situation can the other financing sources and uses category be utilized?
• How is a government's equity interest in a joint venture reflected in net assets if it represents an interest in capital assets?
• How should the receipt of premiums be treated in an internal service fund when probable measurable losses are determined?
• What must each function in governmental activities report according to the requirements?
• Which of the following is a preferred approach for presenting current and noncurrent assets and liabilities?
• Which element shows how the budget is affecting actual financial operations?
• Capital outlays are most frequently used in which type of funds?
• In government-wide financial reporting, why is the order of reporting important?
• According to GASB, which type of accountability is excluded from general-purpose external financial reporting?
• Which statement about recognizing liabilities for grants is correct?
• What is the implication of a government using multiple funds?
• At what level of detail must budgetary comparisons be presented within the CAFR for a nonmajor special revenue fund if a separate budgetary report is issued?
• What accounting principle must be adhered to when recognizing revenue associated with rate-regulated enterprises?
• Which statement reflects the main purpose of an operating statement for governmental funds?
• What is the normal treatment of interest expense within governmental activities in the government-wide statement of activities?
• For which type of revenue would the criteria for recognizing a receivable differ from the criteria for recognizing revenue under accrual accounting?
• If a capital asset is first donated to a discreetly presented component unit, then later to an enterprise fund of the primary government, how should it be ultimately valued?
• Which of the following could NOT be reported in the governmental fund statement of revenues, expenditures, and changes in fund balances?
• For which type of debt is the concept of legal defeasance applied?
• As a general rule, how should changes in equity be reported?
• In which of the following locations could a budgetary comparison for the general fund be found?
• What is a key advantage of identifying control cycles in evaluating control-related policies and procedures?
• What amount should be considered when evaluating custodial credit risk for deposits?
• What set of standards is aimed at meeting the common information needs of those assessing a government's finances?
• Which of the following best describes the proper treatment for uncollectible amounts of revenue?
• How should the effect of a change in accounting principle be treated in the proprietary fund statement of changes in net assets?
• Which item is NOT classified as cash in the proprietary fund statement of cash flows?
• What should a government do to distinguish operational costs in planning for privatization?
• How many principal employers must be identified by governments?
• What does GAAP permit regarding the allocation of indirect expenses in the government-wide statement of activities?
• What is the main purpose of the other financing sources category in governmental accounting?
• Should the balance of no-commitment special assessment debt be disclosed?
• Which of the following statements is false regarding the accounting and financial reporting for rate-regulated enterprises?
• What type of reports are internal financial reports typically?
• When may interest expense be classified as a functional expense in governmental activities?
• What is the consequence of establishing unnecessary individual funds in government accounting?
• How should revenue be recognized for capital leases, when the government is the lessor?
• A county manages individual investment accounts for local governments. Which type of fund does this represent?
• What is fund accounting primarily designed to achieve?
• What is the proper classification of special assessment revenues in the government-wide statement of activities?
• Which activity is NOT classified under investing activities in the proprietary fund statement of cash flows?
• What role does the GASB play in relation to the FASB guidance?
• What is required for an improvement to qualify for capitalization?
• What is one primary objective of the Certificate Program?
• Which statement about research grants is accurate?
• Which statement about fiscal dependence is true?
• Can blended component units be included as part of a primary government fund?
• When is a reconciliation required between the proprietary fund financial statements and the business type activities columns of the government-wide financial statements?
• How should a participating government's undivided interest in a capital asset of a joint venture be reported?
• Is the use of a debt service fund mandatory whenever long-term general obligation debt is outstanding?
• Which statement best describes the recognition of program revenues in connection with single program grants accounted for in more than one function?
• What does GFOA recommend regarding the adoption of the Yellow Book for internal auditing?
• How should employers' contributions to a pension plan be reflected in the schedule of employer contributions?
• How are improvements to capital assets treated for accounting purposes?
• True or False: Credit risk disclosure is not required for debt securities that are only held indirectly.
• What must be considered when assessing the risk levels of control cycles?
• What typically characterizes the format of internal financial reports?
• When should revenue from impact or developer fees be recognized?
• Which of the following statements is true concerning the role of the budget in the public sector?
• Which is false regarding the classification of overhead allocation?
• What is the primary objective of GAAS?
• Which financial reporting aspect is applicable to government-wide statement of position?
• Which aspect of internal control is subject to the potential for override by management?
• What is the required detail level for disclosing interfund receivables and payables?
• Which of the following could qualify as a cash flow for the proprietary fund statement of cash flows?
• What is a key characteristic of external investment pools?
• In which scenario would the term 'transaction' not be applicable?
• When should a provider government recognize a liability for grants?
• What does the CAFR balance sheet generally not include?
• When should the recognition of liabilities for operating leases occur in governmental funds?
• Over time, what is true about the net effect of different measurement focuses on the operating statement?
• Is the use of an internal service fund required under GAAP?
• How should allocations of indirect costs (overhead) be classified according to proper accounting practice?
• Is there a specific bureaucratic requirement for the notes on internal service funds?
• What aspect of compliance is financial reporting concerned with?
• Which of the following would NOT qualify as a cash deposit for custodial credit risk disclosure?
• Which of the following typically would qualify as a joint venture?
• In determining the relative order of liquidity for assets and liabilities, how is the order typically decided?
• What should the SSAP disclose regarding fiduciary funds?
• What happens to the unamortized difference between the carrying amount of refunded debt and reacquisition price?
• True or False: A surplus from setting capital-related charges based on estimated replacement costs violates internal service fund principles.
• Which of the following is an example of an inherent limitation on the effectiveness of internal control?
• What is a key difference in the nature of reports between regular financial audits and audits under GAGAS?
• According to GAAP, how should an employer treat nonvested vacation leave expected to vest?
• How should the significance of foundations within school districts be assessed?
• How do capital contributions to a joint venture affect the contributing government's operating statement?
• For routine purchases of capital assets, which fund type is typically used?
• Where may the "traceability" requirement for the proprietary fund statement of cash flows be fulfilled?
• Which of the following statements is TRUE concerning popular reporting?
• In a private-purpose trust fund, what is the maximum amount of assets that can be reported if a state collects $150,000 in escheat property?
• Which of the following is NOT a basic government-wide financial statement?
• What does GAAP specify about minimum future lease payments?
• Which of the following is NOT indicative of a financial benefit or burden relationship?
• What classifies a transaction as an intangible asset?
• Which of the following scenarios is NOT an instance where assets may be properly reported as held for resale in a governmental fund?
• Which of the following is an example of nonreciprocal interfund activity?
• Which of the following is true about fiduciary-type discretely presented component units?
• What should a paying government in a special funding situation treat the plan as?
• Which treatment is NOT appropriate in connection with conduit debt issued by a state financing authority?
• Is it necessary for a government to report each debt issue in a separate debt service fund?
• Which of the following is NOT an essential characteristic of accounting data?
• What is a primary motivation for establishing an internal service fund?
• How should the proceeds of bonds used to redeem bond anticipation notes be categorized in governmental financial statements?
• How should unused sick leave that can be credited for pension benefits be treated?
• What is the most significant factor in promoting fraud?
• How should interfund borrowings be classified in the fund that receives the proceeds?
• Which of the following statements is TRUE regarding the independent auditor's responsibilities toward RSI?
• What classification applies to a government grant that can be used for capital or operating purposes if ultimately expended on capital assets?
• Which method is preferred for disclosing interest-rate risk?
• What is the consequence of failure to properly maintain a landfill site post-closure?
• How should unspent proceeds of capital debt and the debt itself be considered in calculating net assets?
• Which of the following accurately describes the financial objective of government activities?
• Which component is considered a part of investment income reporting?
• How should debt used to finance capital grants to other governments be classified?
• Which of the following statements best describes how enterprise funds should be reported in government-wide financial statements?
• A government budgeting for multiple programs cannot be considered which type?
• In governmental accounting, what is a common practice regarding liabilities for expenditures?
• Which statement is true regarding agency funds in a CAFR?
• How should unfunded pension contributions be reported in the financial statements?
• Can a government select different capitalization thresholds for different types of capital assets?
• When should additional schedules be provided in financial reporting?
• What does fiscal accountability primarily focus on?
• According to GAAP, what should the financial statements disclose regarding internal service funds?
• Which section of a CAFR is focused on detailing financial performance?
• To which items should custodial credit risk be applied in securities lending arrangements?
• Which statement is false concerning note disclosure?
• What is NOT a GAAP requirement for presenting data on major individual discretely presented component units?
• Is the use of an internal service fund appropriate when a government does not intend to recover the full cost of goods and services?
• Which of the following may NOT be reported as an asset in a governmental fund?
• How should the premiums to a public-entity risk pool be treated if the pool does not transfer or pool the risk?
• If a government receives a grant that is used partially for operating purposes, how is it classified?
• Under what condition can capitalization contributions be treated as prepayments?
• What is a primary characteristic of agency funds?
• An ad valorem tax on personal property is an example of what type of transaction?
• Are all pass-through grants required to be reported in an agency fund?
• Which of the following best describes fiduciary component units?
• Which criterion applies exclusively to special items and not to extraordinary items?
• Which of the following best describes the treatment of debt for capital grants to governments?
• Which of the following is a key consideration in a vulnerability assessment?
• Which type of transaction must be classified as a nonexchange transaction?
• How should the relationship between a component unit and its primary government be disclosed?
• Which ratio expresses a government's overall debt burden in the CAFR?
• What is the fundamental objective of general-purpose external financial reporting?
• Which of the following statements is false concerning the periodic evaluation of internal controls?
• Is the appropriated budget of a government considered merely a financial plan?
• How should resources generated by enabling legislation be reflected in net assets?
• What is the primary limitation on reporting for cost-sharing agreements?
• Which of the following items does NOT necessarily qualify for inclusion as part of the historical cost of a capital asset?
• Which is true about a component unit's eligibility for the Certificate Program?
• Are accounting and financial reporting considered synonymous?
• What is the principal of a permanent fund allowed to be used for?
• What was GASB's decision about the frequency of SEA reporting?
• What does the term 'disallowed costs' generally refer to?
• How does the disclosure for other post-employment benefits (OPEB) compare to pension benefits?
• The difference between the carrying amount of refunded debt and its reacquisition price is associated with which period?
• How often must arbitrage be calculated and rebated under federal law?
• How are capital assets treated in the government-wide financial statements?
• Should temporary declines in the service utility of capital assets be recognized in financial statements?
• How should the proceeds from a grant that does not incur repayment obligations be treated?
• What potential issue arises if an internal service fund is primarily used by governmental activities?
• What classification is generally attributed to income from investments in a proprietary fund?
• Which of the following is NOT a criterion for identifying an external investment pool?
• What happens if there is no separate financial report from a component unit with multiple funds?
• In what manner can a discretely presented component unit of a multi-fund business-type activity be reported?
• In what case would the general fund NOT recognize a receivable for exchange and exchange-like transactions immediately?
• When should revenues be recognized for commodities recognized as supplies inventories in governmental funds?
• Which of the following popular reports would be eligible for the Popular Annual Financial Reporting Program?
• Which statement is FALSE regarding the use of internal service funds?
• Net assets held in trust for OPEB must include a reference to the funding progress. True or False?
• How many years of trend data are typically required in the statistical section of a CAFR?