In-depth financial statement analysis
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Governments must combine their Discretely presented component units into both the fund and the Government-wide statements. F
A related organization is a Contractual arrangement whereby two or more participants agree to Carry out a common activity and share its risks and rewards. F
A primary government can impose Its will on a potential component unit if it has the authority to Modify or approve the unit’s budget. T
The comprehensive annual financial report (CAFR) is divided into three main sections: the Table of contents section, the auditors’ report section, and the Financial section. F
The typical audit is designed to Cover all information included in the CAFR. F
There are only two Government-wide statements: the statement of net assets and the Statement of activities. T
Rquired notes are an essential Element of the basic financial statements. T
Rquired supplementary Information (RSI) is considered part of the basic financial Statements. F
Public colleges and universities Must adhere to the same GASB pronouncements as other types of gov T
FASB Statement No. 117 directs that revenues and expenses be reported in a statement of financial position. T
In the statement of activities, FASB Statement No. 117 requires Revenues to be reported as increases in one of the three categories Of net assets, depending on donor-imposed restrictions; however, all Expenses should be reported as decreases in unrestricted net assets. T
Restricted contributions may be reported as unrestricted if the Restriction has been met in the same period as the contribution is Made. T
FASB Statement No. 95 requires not-for-profits to use the direct Method in their statements of cash flows. F
In accounting for investments, not-for-profits, like businesses, Must report their investments at fair value and classify the Investments as either trading, available-for-sale, or Held-to-maturity.
FASB Statement No. 93 makes the recognition of depreciation on Plant and equipment assets optional at the discretion of the Not-for-profit. F
Tmporarily restricted funds related to plant and equipment Generally account only for resources restricted to their purchase or Construction, not for the plant and equipment itself, which are Typically reported in the unrestricted fund. T