Test Week 3 Quiz Question 1         Which of the following is an objective of financial reporting by state and local governments?                     Question 2         An agency relationship that usually necessitates the creation of an agency fund is the collection of revenues by one government for several of its funds and/or for other governments and their funds

Test

Week 3 Quiz

Which of the following is an objective of financial reporting by state and local governments?

An agency relationship that usually necessitates the creation of an agency fund is the collection of revenues by one government for several of its funds and/or for other governments and their funds. 

Agency funds of this nature, particularly for assessment and collection of property taxes, are commonly found at the county level.

Which ratio or concept describes the extent to which the government has lived within its means for the year? 

Which of the following financial concepts has been defined by the GASB as "the probability that a government will meet both its financial obligations to creditors, consumers, employees, taxpayers, suppliers, constituents, and others as they become due and its service obligation to constituents, both currently and in the future?"

Fiduciary funds are reported   

If a state or local government acts as an intermediary between the federal government and beneficiary recipients in processing grant or entitlement resources, those resources should be accounted for in an agency fund

At the government-wide level, where are fiduciary funds reported?

What constitutes the basic financial statements of a government? 

Which of the following is evidence of fiscal independence for the purpose of considering whether one legally separate organization is a component unit of another? 

Which of the following is a valid reason for establishing a tax agency fund and charging a collection fee to other governments? 

Which of these fiduciary fund types always has zero net position? 

The similarities between for profit and governmental and not for profit include:

Billing and collection of special assessments and payment of debt principal and interest on special assessment debt for which the city is not obligated in any manner should be recorded in a(an):

Service efforts and accomplishments (SEA) reporting helps citizens, elected officials, appointed officials, investors and creditors, and other interested parties evaluate the government's performance in the absence of a "bottom line" measure such as exists for for-profit entities.     

Fiscal capacity is the government's ongoing ability and willingness to supply the capital and human resources needed to meet its commitments to provide services.

If a city has a fiduciary responsibility for assets entrusted to it, describe the factors that the city would consider in deciding whether to account for the assets in an agency fund or a trust fund. 

In your own words, describe the relationships between a component unit and a primary government. Provide some examples and describe the financial reporting for a component unit.