Problem 1: In order to compute the operating ratio-enterprise funds, one would look in the CAFR in which of the following sections?
A. In the proprietary funds Statement of Revenues, Expenses and Changes in Net Assets
B. In the proprietary funds Statement of Net Assets
C. In the proprietary funds Statement of Cash Flows
D. In the government-wide Statement of Net Assets
Problem 2: Which organization promulgates the Government Auditing Standards?
A. The Securities and Exchange Commission
B. The U.S. Office of Management and Budget
C. The U.S. Government Accountability Office
D. The American Institute of Certified Public Accountants
Problem 3: All of the following are considered to be a major user group by the GASB EXCEPT:
A. legislative and oversight officials
B. investors and creditors
C. government executive branch officials
D. citizen groups
Problem 4: Financial reports for state and local governments are used for all the following EXCEPT:
A. compare actual results with the legally adopted budget
B. measuring the effectiveness of government services such as police and fire protection
C. assist in determining compliance with finance-related laws and regulations
D. assess financial condition and results of operations
Problem 5: The GASB is under the oversight of:
A. FAF
B. FASAB
C. FASB
D. GAO
Problem 6: Why did governmental accounting practices develop with a focus on the sources and uses of expendable funds rather than on net income?
A. Tax and other non exchange revenues are not equivalent to sales
B. Net income is solely for private organizations
C. Net income is solely for public organizations
D. The government wants to keep the earnings discrete