Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1) In a governmental audit the auditor is required to report directly to appropriate
officials in addition to the board or audit committee.
2) An asset may be considered impaired if either the decline in the service utility is
unexpected or the amount of the decline in service utility is large.
3) Because they are engaged in business-type activities, governmental health care
organizations typically use the accrual basis and economic resources measurement
focus.
4) Bond refunding is repurchasing bonds from bondholders using residual money left
over after a capital project has been completed.
5) FASB statement 116 requires unconditional pledges of support to be recorded as
revenue when the contribution is promised.
6) The government-wide statements do not include a government-wide Statement of
Cash Flows.
7) General fixed assets of the government are reported both in the government-wide
financial statements and the governmental fund financial statements.
8) Public institutions of higher education are required to produce a Statement of Cash
flows in addition to a Statement of Net Position and a Statement of Revenues,
Expenses, and Changes in Net Position.
9) Modified accrual accounting is essentially equivalent to cash basis accounting
10) The purpose of a Statement of Fiduciary Net Position for a defined benefit pension
plan is to enable the reader to determine whether the pension plan is sufficiently funded.
11) Special revenue funds are used if the resources are required to be used to acquire
capital assets or for the payment of interest and principal on long-term debt.
12) Prior-year data is required for government-wide financial statements.
13) Transfers from one fund to another are classified as expenditures in the fund
making the transfer.
14) Proprietary funds are required to have a Statement of Revenues, Expenses, and
Change in Fund Net Position, a Statement of Net Position, but not a Statement of Cash
Flows.
