Print › Govt Acct Ch 11 | Quizlet

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1. false: Required supplementary information (RSI) is considered part of the basic financial statements.

2. false: The typical audit is designed to cover all information included in the CAFR.

3. false: 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.

4. false: Governments must combine their discreetly presented component units into both the fund and the government-wide statements.

5. false: 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.

6. true: Public colleges and universities must adhere to the same GASB pronouncements as other types of governments.

7. true: Required notes are an essential element of the basic financial statements.

8. true: There are only two government-wide statements: the statement of net assets and the statement of activities.

9. true: Governments must combine their blended component units into both the fund and government-wide statements.

10. true: 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.