Question

Which of the following is a required note disclosure regarding interfund transfers?

Select one:

A. Interfund transfers do not need to be described provided the balances due on the transfers are made within two years.

B. Interfund transfers do not need to be described provided the total amount of the transfers is clearly reported on the face of the operating statement.

C. Each interfund transfer, regardless of size, is required to be described

D. A general description of the principal purposes of interfund transfers must be disclosed.

Which of the following major captions are not found in the proprietary funds statement of revenues, expenses, and changes in fund net position?

Select one:

A. Nonoperating revenues (expenses)

B. Operating expenses

C. Investing revenues (expenses)

D. Operating revenues

Basic financial statements consist of government-wide financial statements and fund financial statements for governmental funds, proprietary funds, and fiduciary funds.

Select one:

True

False

A discussion of accounting policies regarding individual assets and liabilities is included in the significant accounting policies section of the notes to the financial statements.

Select one:

True

False

Answer 1

1. Answer is option D

A general description of the principal purposes of interfund transfers must be disclosed including the purpose of transfers and amounts of transfers

2. Answer is option C

the proprietary funds statement of revenues, expenses, and changes in fund net position is mainly dividend into operating and nonoperating section. investing revenues (Expenses) are the part of Statement of cash flows.

3. Answer is True

three basic categories of financial statements are:

1.governmental funds

2. proprietary funds

3. fiduciary funds

4. answer is True

These discussions in the notes assists investors to take proper investment decisions.