Discuss AGA GAFRB Exam Topic 3 Question 20

All the following are required financial statement reporting on governmental funds EXCEPT

Athe balance sheet.

Bthe operating statement.

Cexpenditures and changes in fund balance.

Dstatement of cash flows.
The governmental funds (e.g., general fund, special revenue fund, capital projects fund) are reported using the modified accrual basis and current financial resources measurement focus. Required financial statements for governmental funds include:
Balance Sheet
Statement of Revenues, Expenditures, and Changes in Fund Balances
There is no requirement for a statement of cash flows for governmental funds. The statement of cash flows is only required for proprietary funds (e.g., enterprise and internal service funds) and is prepared using the direct method.
Relevant Reference:
GASB Statement No. 34 -- Basic Financial Statements
GASB Codification Section 2200
GFOA Governmental Fund Reporting Guidelines
Answer : D. statement of cash flows

Suggested Answer: D

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15 comments · newest first

Tegan 1 month ago

Same here! Glad we reviewed GASB 34.

Arlette 1 month ago

I remember studying that. It helped me.

Kasandra 1 month ago

Right? It's only for proprietary funds.

Tegan 2 months ago

I feel confident about D. No cash flow statement needed!

Arlette 2 months ago

Definitely! I almost picked C.

Kasandra 2 months ago

I think this question is tricky.

Allene 2 months ago

Expenditures and changes in fund balance are a must too!

Norah 2 months ago

Balance sheet and operating statement are definitely required.

Lasandra 2 months ago

Wait, really? I thought cash flows were important for all funds.

Micah 3 months ago

Totally agree, it's only for proprietary funds!

Luann 3 months ago

The statement of cash flows isn't needed for governmental funds.

Lashawna 3 months ago

I recall that the balance sheet and operating statement are essential, but the cash flow statement is not needed for governmental funds. So, D makes sense to me.

Alaine 3 months ago

I practiced a similar question where we had to identify which statements were required for governmental funds. I think D is definitely the right choice.

Vicente 3 months ago

I'm a bit unsure about this one. I thought all funds had to report cash flows, but I guess that's only for proprietary funds?

My 4 months ago

I remember studying the financial statements for governmental funds, and I think the statement of cash flows isn't required for them.

AGA GAFRB Exam - Topic 3 Question 20 Discussion