Quiz Detail

Q1 . A tax watchdog group is an example of an intermediary that represents citizen interests.

A True

B False

Q2 . The term financial position is closely related to the term liquidity while financial condition is much broader in scope, including not only financial position but also consideration of long-term solvency.

A True

B False

Q3 . Which of the following statements is correct regarding the relationship between financial condition and economic condition?

A As defined by GASB, economic, condition is a broader term that would include the concepts embedded in the term financial condition

B Financial condition as defined by the ICMA incorporates cash solvency, budgetary solvency, long-run solvency, and service-level solvency, making it broader than the term economic condition

C Financial condition and economic condition relate to the government's ability to meet its short-term obligations

D None of the above

Q4 . Which of the following environmental factors reveals the entity's underlying philosophies regarding willingness to support higher taxes, issuances of long-term debt, and increased social services?

A Political culture

B Community needs and resources

C External economic conditions

D Management practices and legislative policies

Q5 . Which of the following would be an effective means of benchmarking?

A Comparing the city's key ratios to those of special purpose governments in the area.

B Comparing current-period ratios to published medians of the same ratios for cities of similar size or in the same geographic region.

C Comparing key ratios to published medians of the same ratios for larger cities in other parts of the country.

D Comparing current-period ratios to estimates for future periods.

Q6 . Which of the following suggests a government that is relying primarily on revenues it directly controls?

A Property taxes, 20%; chargers for services, 70%; grants and contributions, 5%, investment income, 5%

B Property taxes, 20%; chargers for services, 60%; grants and contributions, 10%, investment income, 10%

C Property taxes, 40%; chargers for services, 40%; grants and contributions, 10%, investment income, 10%

D Property taxes, 60%; chargers for services, 5%; grants and contributions, 30%, investment income, 5%

Q7 . Which of the following trends is most likely to be a signal of impending fiscal stress?

A An increasing ratio of own source revenues to total revenues.

B A decreasing ratio of total revenues to total expenditures.

C A decreasing ratio of debt service expenditures to operating revenues.

D A decreasing ratio of operating expenditures to total revenues.

Q8 . Which of the following conditions could signal impending fiscal stress?

A Decreasing unemployment

B Increasing property values

C Decreasing revenues relative to expenditures

D Decreasing levels of unfunded pension obligations and other post employment retirement benefits

Q9 . The term that is closely related to the concept of liquidity is:

A Financial position

B Interperiod equity

C Financial condtion

D Economic condition

Q10 . Cash solvency is the government's long-run ability to pay all the costs of doing business.

A True

B False

Q11 . Which of the following best defines fiscal capacity?

A The probability that a government will meet its financial obligations and sustain services in the future

B The ability and willingness of the government to meet its obligations when they are due

C The government's ability and willingness to provide services

D Current assets are sufficient to pay current liabilites

Q12 . Which oof the following terms or concepts focuses primarily on a government's ability to generate enough cash over a 30- or 60- day period ti pay bills?

A Interperiod equity

B Financial condition

C Budgetary solvency

D Cash solvency

Q13 . The term that is defined as determining whether current-year revenues are sufficient to pay for the services provided that year and whether future taxpayers will be required to assume burdens for services previously provided is:

A Financial position

B Interperiod equity

C Financial condition

D Economic condition

Q14 . Which of the following is not a typical reason why people evaluate a government's financial condition?

A Prevent financial crises from developing.

B Hold management accountable for the use of tax revenues.

C Determine if the government can continue to offer the current level of services.

D Determine whether residents will receive dividends.

Q15 . Which of the following groups or parties generally has taken the most initiative to evaluate the financial condition of a city?

A Citizens

B Managers

C Credit market analysts

D Legislative and oversight bodies

Q16 . The key cause of municipal financial crises is the failure of management to raise taxes quickly enough in response to adverse environmental factors.

A True

B False

Q17 . A term that describes a government's ongoing ability and willingness to raise revenues, incur debt, and meet its financial obligations

A Financial condition.

B Fiscal capacity.

C Economic condition.

D Financial position.

Q18 . The group of factors that largely determines how fiscal policy is influenced by environmental factors is:

A Natural disasters and emergencies

B Unfunded liabilities

C External economic conditions

D Management practices and legislative policies

Q19 . One of the most important reasons to evaluate the financial performance of a government is to:

A Determine if property taxes and other revenue sources should be increased.

B Assign responsibility for success or failure of the government to certain parties.

C Determine whether the government is accomplishing its mission.

D Have an early warning of impending financial difficulty for a diverse set of decision makers.

Q20 . Credit rating agencies such as Moody's, Standard & Poor's, and Fitch examine which of the following factors when assessing creditworthiness for purposes of rating tax-supported bonds?

A Economy, finances, management, service capacity

B Finances, management, service capacity, debt

C Management, service capacity, debt, education

D Demographics, finances, management, debt

Acct365 Ch10

Q1 . A tax watchdog group is an example of an intermediary that represents citizen interests.

Q2 . The term financial position is closely related to the term liquidity while financial condition is much broader in scope, including not only financial position but also consideration of long-term solvency.

Q3 . Which of the following statements is correct regarding the relationship between financial condition and economic condition?

Q4 . Which of the following environmental factors reveals the entity's underlying philosophies regarding willingness to support higher taxes, issuances of long-term debt, and increased social services?

Q5 . Which of the following would be an effective means of benchmarking?

Q6 . Which of the following suggests a government that is relying primarily on revenues it directly controls?

Q7 . Which of the following trends is most likely to be a signal of impending fiscal stress?

Q8 . Which of the following conditions could signal impending fiscal stress?

Q9 . The term that is closely related to the concept of liquidity is:

Q10 . Cash solvency is the government's long-run ability to pay all the costs of doing business.

Q11 . Which of the following best defines fiscal capacity?

Q12 . Which oof the following terms or concepts focuses primarily on a government's ability to generate enough cash over a 30- or 60- day period ti pay bills?

Q13 . The term that is defined as determining whether current-year revenues are sufficient to pay for the services provided that year and whether future taxpayers will be required to assume burdens for services previously provided is:

Q14 . Which of the following is not a typical reason why people evaluate a government's financial condition?

Q15 . Which of the following groups or parties generally has taken the most initiative to evaluate the financial condition of a city?

Q16 . The key cause of municipal financial crises is the failure of management to raise taxes quickly enough in response to adverse environmental factors.

Q17 . A term that describes a government's ongoing ability and willingness to raise revenues, incur debt, and meet its financial obligations

Q18 . The group of factors that largely determines how fiscal policy is influenced by environmental factors is:

Q19 . One of the most important reasons to evaluate the financial performance of a government is to:

Q20 . Credit rating agencies such as Moody's, Standard & Poor's, and Fitch examine which of the following factors when assessing creditworthiness for purposes of rating tax-supported bonds?