Understanding Governmental Accounting Standards Board (GASB)

School: Kennesaw State University - Course: ACC 410 - Subject: Accounting

WEEK 7 - ACTIVITY: HOMEWORK CHAPTERS 11 & 162 Chapter 11 Exercise 11-1. Select the best answer. 1.New York State has unlimited authority to control and regulate Yonkers as well as all other municipalities within its jurisdiction. Consistent with GASB standards: a.Both New York State and Yonkers could be considered primary governments. b.Only New York State could be considered a primary government. c.Yonkers could be considered a primary government only if the state has explicitly passed legislation ceding key fiscal controls to local governments such as Yonkers. d.Yonkers could be considered a primary government only if the state opts not to account for Yonkers as a component unit. 2.Which of the following is not a power that a municipality must have to be considered fiscally independent of other governments? a.To determine its budget b.To levy taxes and set rates c.To establish debt limitations d.To issue bonds 3.Carson City's council appoints a voting majority of the Carson City Housing Authority's governing board. Which of the following additional criteria would not be sufficient

WEEK 7 - ACTIVITY: HOMEWORK CHAPTERS 11 & 163 evidence that Carson City is financially accountable for the Carson City Housing Authority? a.The mayor of Carson City must approve the Housing Authority's budget. b.Two of the five members of the Housing Authority's governing board are also members of the Carson City council. c.Carson City guarantees any debt incurred by the Housing Authority. d.The Carson City council can appoint the managing director of the Housing Authority. 4.The Sierra Library District satisfies the criteria to be blended into the financial statements of Sierra County. Which of the following fund types of the two governments would not be combined in the blended statements? a.Pension trust funds b.General funds c.Permanent funds d.Proprietary funds