Where in the CAFR would one find the long-term liability for revenue bonds (paid from the revenues of an enterprise fund)? If a company finances a project directly, for example, cash remains unaffected. B) Governmental funds include the General Fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. A firm's net cash flow from operating activities includes which of the following Select one: O A. B) When preparing fund basis financial statements, any funds not reported separately are reported by function. A) Fiduciary funds are reported in the fiduciary fund financial statements but not in the government-wide financial statements. A) They are used whenever a non-major column is used in one of the fund financial statements. 5. D) At the bottom of the statement, net income is reconciled to cash flows from operations. Which of the following is true regarding fiduciary funds? This money is from investors and creditors. Financial statements are written records that convey the business activities and the financial performance of a company. What are financial activities? A) Statements include the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. D) Accrued Wages Payable at year end are reported on the statement of Net Position but are not reported in the fund statements. This includes your income, assets, and liabilities. C) The government-wide financial statements include capital assets, including infrastructure, and reflect depreciation, except for infrastructure using the modified approach. Governmental-type funds label the excess of assets over liabilities on the balance sheet as: In addition to the government-wide statements, governments are required to prepare fund financial statements for which of the following category funds? a) acquiring investments. Below is a list of the most common financial activities that accountants enter in the statement of cash flows: Regarding large cash inflows/outflows, AccountingTools makes the following comment: “You should delve into the reasons for a large positive or negative balance in the cash flows from financing activities, since it can, for example, denote the need for a large loan to support ongoing negative cash flows from operations.”. Arranging loans, selling bonds or stocks are also financial activities. c) acquiring long-lived assets. All Rights Reserved. Which of the following is considered Required Supplementary Information (RSI)? When creating a budget, which of the following statements is true? Definition and examples, payouts to shareholders from a company’s profit, shares of banks and other financial institutions. c. Paying salaries to employees d. Buying property. B) Government-Wide Statement of Activities. The modified approach for infrastructure requires schedules and disclosures to be included in which part of the CAFR? B) Fiduciary fund financial statements include the Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. Which of the following is included in RSI? Selling products or services to customers. C. Common financial problems can be maximized through budgeting. Governmental fund statements are prepared using: B) Current financial resources measurement focus and modified accrual basis of accounting. Which of the following is NOT considered Required Supplementary Information (RSI)? A) Component units may be reported discretely in the government-wide statements or may be blended as a fund in the fund financial statements (and thus also included in the government-wide financial statements). Dividends are payouts to shareholders from a company’s profit. New loans that the company issues, for example, are inflows from creditors. C) Both A and B are required for a governmental fund to be a major fund. D. Numbers in the budget are estimates. Financial activities are activities that companies undertake to help achieve their economic goals and objectives. Finance Xod has the following definition of financial activities: “The buying and selling of assets and products, maintaining accounts, organizing accounts, and issuing bonds or stocks. These include the conversion of debt to common stock or discharging of a liability by the issuance of a bond payable. Humans begin carrying out financial activities from a very early age. In this context, the term ‘stocks’ means the same as ‘shares.’ Hence, the term ‘stocks and shares.’. a. agency activities are reported only in the fiduciary fund financial statements b. agency fund financial information is reported in a separate column of the government-wide statement of activities Financing activities include transactions involving debt, equity, and dividends. ‘Finance’ refers to anything to do with the exchange of certain capital assets between people, companies, or states. With respect to the preparation of fund basis financial statements, governmental funds other than the General Fund are considered to be a major when which of the following conditions exist? C) MD&A should present an analysis of significant variations between the original and final budget. Which of the following is true with respect to the General Fund? A) The CAFR is to include both blended and discretely presented component units. B) The government-wide financial statements include a Statement of Net Position and a Statement of Activities, but not a Statement of Cash Flows. Which of the following is not true regarding the Statement of Cash Flows for. Which of the following is not one of the major sections of the Comprehensive Annual Financial Report (CAFR)? Which of the following is true regarding financial reporting of governmental funds? Which Statement is presented using the Accrual Basis of Accounting? Which of the following is true regarding the government-wide Statement of Activities? The statistical section typically presents ____ years of information in each table or schedule. A. In the world of stocks and shares, ‘financials’ refers to the shares of banks and other financial institutions. Which of the following sections of the CAFR is audited? Which of the following is true regarding GASB's definition of the financial reporting entity? personal finance. If I want to know how a friend is coping money-wise, I might ask “How are your finances?”, If somebody is in financial trouble, they might say “My finances are a mess!”. Regarding large cash inflows/outflows, AccountingToolsmakes the following comment: “You should delve into the reasons for a large positive or negative balance in the cash flows f… Which part of the financial section of the CAFR is considered "Required Supplementary Information?". Which of the following is one of the criteria to determine if a governmental fund is considered to be a major fund. The financing activities of a business provide insights into the business’ financial health and its … b. 17. Which of the following items would likely appear in the reconciliation between the governmental fund financial statements and the governmental activities column in the government-wide financial statements? LO 4.1Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions? Which of the following is true regarding the government-wide Statement of Net Positions? B) The government-wide Statement of Activities reflects taxes as general revenues, C) The Statement of Activities includes depreciation expense. Which of the following is true regarding component units? The word ‘financial‘ is the adjective of the noun or verb finance and the noun finances. Which of the following funds require a Statement of Cash Flows? With respect to Government-wide financial statements, which of the following is not required by GASB? A reconciliation from Enterprise funds statements to government-wide statements is not necessary because ... A) They both use the same measurement focus and basis of accounting (economic resources, accrual). Which of the following is true regarding the government-wide financial statements? The total fund balances presented in Governmental Funds Statements are different from the total Net Position on the governmental-wide Statement of Net Position. All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. C) Introductory Section, Financial Section, Statistical Section. © 2020 - Market Business News. Purchasing and selling assets or products, organizing accounts, and maintaining accounts, for example, are financial activities. A) Discretely presented component units are included in a separate column (or columns). 1. ... you can always budget some money for fun activities. Debt repayments (cash outflow). They may start, for example, as soon as a child buys candy and hands over money to a shopkeeper. A person or business that offers loans at extremely high interest rates. ‘Finances’ has many meanings. 2. a. A budgetary comparison schedule is required for? A company’s cash account never alters if it uses a mortgage for a new building.