Week 2 Assignment
Text Book Exercises
December 17, 2014
ACC/460
Ch. 1: Exercise 1-1, Questions 1, 3, 4, 5, 7, & 8
A - They have different missions (1)
C - Provide services to constituents (3)
C - There may not be a direct relationship between revenues raised and the demand for the entity’s services (4)
B - GASB (5)
D - Do not issue common stock (7)
Ch. 2: Question for Review and Discussion 12. In addition to answering question 12, provide a response in 150-350 words differentiating between a budget and a Comprehensive Annual Financial Report (CAFR).
What is a CAFR? What are its main components? The CAFR is known as a comprehensive annual financial report. It consist of more than the basic statements and exceed 200 pages for large cities. Its components are the introductory section, financial section and the statistical section.
The comprehensive annual financial report is the complete annual report of that government, city or state. It is broken into three components, which are the introductory section, financial section and the statistical section. The introductory section should include a letter of transmittal and general information as to how the government is organized. It should present an overview of financial and economic conditions faced by the government and summarizes recent key financial developments. In the financial section should contain the management’s discussion and analysis. There will also be the basic financial statements, note to the statements, required supplementary information and the combining and individual fund financial statements. In the statistical section you can see the ten primary statements and a dozen supplementary statements and schedules that are incorporated into notes and supplementary sections. A budget on the other hand is a document that shows the proposed revenues and spending for a specific financial year that has to be passed by legislature and approved. The difference between both is that a budget is
December 17, 2014
ACC/460
Ch. 1: Exercise 1-1, Questions 1, 3, 4, 5, 7, & 8
A - They have different missions (1)
C - Provide services to constituents (3)
C - There may not be a direct relationship between revenues raised and the demand for the entity’s services (4)
B - GASB (5)
D - Do not issue common stock (7)
Ch. 2: Question for Review and Discussion 12. In addition to answering question 12, provide a response in 150-350 words differentiating between a budget and a Comprehensive Annual Financial Report (CAFR).
What is a CAFR? What are its main components? The CAFR is known as a comprehensive annual financial report. It consist of more than the basic statements and exceed 200 pages for large cities. Its components are the introductory section, financial section and the statistical section.
The comprehensive annual financial report is the complete annual report of that government, city or state. It is broken into three components, which are the introductory section, financial section and the statistical section. The introductory section should include a letter of transmittal and general information as to how the government is organized. It should present an overview of financial and economic conditions faced by the government and summarizes recent key financial developments. In the financial section should contain the management’s discussion and analysis. There will also be the basic financial statements, note to the statements, required supplementary information and the combining and individual fund financial statements. In the statistical section you can see the ten primary statements and a dozen supplementary statements and schedules that are incorporated into notes and supplementary sections. A budget on the other hand is a document that shows the proposed revenues and spending for a specific financial year that has to be passed by legislature and approved. The difference between both is that a budget is