Question

Required supplementary information (RSI) of a state or local government other than management’s discussion and analysis (MD&A) includes

1. Individual fund statements
2. Combining statements
3. Budgetary comparison schedules

a) II and III.

b) III.

c) I and III.

d) I and II.

Which of the following is one of the three standard sections of a governmental comprehensive annual financial report?

a) Investment.

b) Single audit.

c) Actuarial.

d) Statistical.

Answer 1

Solution:

Question 1:

The answer is b) III (Budgetary Comparison Schedules)

Reason:

Required Supplementary Information (RSI) of a state or local government includes the Management’s Discussion and Analysis (MD&A) section. Other than this, there is a separate section which includes the following.

1) Schedules

2) Statistical Data

3) Budgetary Comparison Schedules & Other Information.

So, As per above discussion Required Supplementary Information includes Budgetary comparison schedules but does not includes remaining options given the question such as Individual fund statements and Combining statements.

So, remaining options are not correct.

Question 2:

The answer is (d) Statistical

Reason:

Governmental Comprehensive Annual Financial Report ( CAFR ) divided into 3 main sections:

1) Introductory Section ( Orients and guides the reader through the report )

2) Financial Section ( Includes entity basic financial statement, notes to the statements and independent auditors` report)

3) Statistical Section ( Includes additional financial data and statistical data )

Remaining Options are not correct because remaining options such as

a) Investment.

b) Single audit.

c) Actuarial

are not used to define Comprehensive Annual Financial Report (CAFR) Sections.