Exam (elaborations)
CPFO ACCOUNTING EXAM LATEST VERSION
- Course
- Institution
CPFO ACCOUNTING EXAM LATEST VERSION....
[Show more]
Content preview
CPFO ACCOUNTING EXAM LATEST VERSIONWhich of the following most accurately describes the role of accounting,
financial reporting and the financial statement audit for state and local
government?
A. They represent an integrated scheme of internal control.
B. They are the information infrastructure of public finance.
C. They collectively represent a performance management system for the public
sector.
Sound financial decisions depend upon reliable information. Accounting,
financial reporting, and the financial statement audit together provide that
information. Thus, accounting, financial reporting and the financial statement
audit serve as the informational infrastructure of public finance. [Correct
response = B]
Who is primarily responsible for accounting?
A. The governing body
B. The independent auditor
C. Management
Accountability for the management of financial resources lies with those who
have managed them. [Correct answer = C]
#### Brainpower
Read More
Who is responsible for financial reporting?
A. The governing body
B. The independent auditor
C. Management
,Those entrusted with the management of financial resources are accountable for
reporting on the stewardship of the resources committed to their care. [Correct
answer = C]
Which of the following best describes the relationship between accounting and
financial reporting?
A. The two terms are essentially interchangeable.
B. The two terms are complementary but distinct.
C. The two terms are unrelated
This may be defined as the process of assembling, analyzing, classifying, and
recording data relevant to the financial activities of a government. Financial
reporting refers to the process through which that information is transformed
into a usable form for the intended users. Thus, accounting and financial
reporting are complementary processes, distinct from each other nevertheless.
[Correct answer = B]
The format and content of internal reports are determined by
A. Generally accepted accounting principles
B. Management's needs and preferences
C. Both A and B
internal financial reporting focuses on the needs of managers, who are free to
design reports to meet their needs and preferences. [Correct answer = B]
What usually determines the content and form of general purpose external
financial reports?
A. Generally accepted accounting principles
B. Management's needs and preferences
, C. Both A and B
General purpose external financial reports are targeted to meet the needs of
those not in a position to obtain information that addresses their particular needs
and preferences. It is the role of GAAP, which provides the format and contents
of such reports, to ensure that the users of those reports have all of the basic
information needed to make an informed assessment of a government's
finances. [Correct response = A]
Which of the following methods of communication would require that a given
item meet the definition of a financial statement element?
A. Display
B. Disclosure
C. Both A and B
Only items that meet the definition of a financial statement element qualify for
display on the face of the financial statements. In contrast items that do not meet
the definition of a financial statement element may be disclosed in the notes to
the financial statements such as commitments and contingencies. [Correct
answer = A]
Which of the following may be a reporting unit, for which financial statement
elements are displayed?
A. A single government
B. Two or more governments
C. A part of a government
D. Two or more parts of government
E. All of the above
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller luzlinkuz. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now