CGFM

CGFM practice questions, page 4 of 8, with answer review and explanations.

Question 16

Based upon the information below, for a governmental fund calculate the amount of revenues for the year using the modified accrual basis of accounting, assuming all deferred revenues are related to receivables.

  1. $278,000
  2. $245,000
  3. $247,000
  4. $253,000

Question 17

Other factors being equal, when the cost of inventory has increased over several financial statement periods, an agency using LIFO will:

  1. need to restate their financial statements after five years of cost increases.
  2. show a higher value of ending inventory than a similar agency that uses FIFO.
  3. need to increase the audit frequency.
  4. reflect lower net income than an agency that uses the average cost inventory method.

Question 18

A county fire department receives property tax revenue on a 55% (December), 40% (April), 5% (June) basis. The uncollectible portion is .05%. If the department received $5.1 million in December, the annual property tax revenues will be:

  1. $10,200,000.
  2. $ 9,272,727.
  3. $ 9,268,091.
  4. $ 8,809,091.

Question 19

The CAFR includes all of the following EXCEPT the:

  1. basic financial statements.
  2. MD&A.
  3. RSI.
  4. PAR.

Question 20

Fund-level financial statements are prepared to present:

  1. both a short and long term perspective on governmental finances.
  2. information on financing activities.
  3. information that is more narrowly focused than mandated by government standards.
  4. a detailed short term view of government services.