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2–14 Examine the CAFR. Utilizing the CAFR obtained for Exercise/Problem 1–16,examine the financial statements included in the financial section and answer thefollowing questions.

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1. Government-wide Statements. What are the titles of the two government-widestatements? Are total assets larger for governmental activities or business-typeactivities? Which function or program has the highest net cost? What kinds ofgeneral revenues are available to cover the net cost of governmental activities?Were business-type activities “profitable”? That is, is the excess of revenues overexpenses positive?

2. Governmental Funds. Does the report state the basis of accounting used for theGeneral Fund? What types of assets and liabilities are included on thegovernmental funds balance sheet? Is this reporting consistent with the basis ofaccounting being followed?

3. Identify which of the major funds, if applicable, are special revenue funds, debtservice funds, capital projects funds, and permanent funds. Are you able todetermine which funds are considered nonmajor? (Hint: look for supplementaryinformation.) What fund balance categories are being used?

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4. Proprietary Funds. List the names of the proprietary fund types included in thefinancial statements. Do the financial statements provide evidence that allproprietary funds use accrual accounting?

5. Fiduciary Funds. List the names of the fiduciary funds included in the fundfinancial statements. Identify whether each of these is an agency fund, investmenttrust fund, pension (and other employee benefit) trust fund, or private-purposetrust fund. Do the financial statements provide evidence as to what basis ofaccounting these funds use?

6. Notes to the Financial Statements. Read the notes to the financial statements, sothat you can refer to them as needed in subsequent chapters. What significantaccounting policies are discussed in the first note? With regard to revenuerecognition, how do the notes define the term available for paying current periodobligations?Get accounting assignment homework help today


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