11/26 Chapter 12

Question 1

six criteria

Answer 1

cash flow
sales price
sales markets
financing for sub
intercompany transactions and arrangements
pg
look at the long term

Question 2

high inflationary economy

Answer 2

if the economy is unstable then you would use dollars

Question 3

translation

Answer 3

95% of the time

take it through OCI

Question 4

remeasurement

Answer 4

monetary balance sheets items are remeasured using the current rate
nonmonetary balance sheet items are remeasured using historical rates
balancing item goes to other income to balance the difference between the two

Question 5

equity items

Answer 5

historical rate

Question 6

balance sheet items

Answer 6

current rate

Question 7

looks at slides for difference between the two

Answer 7

:(

Question 8

Ch17

Answer 8

governmental accounting

Question 9

GASB

Answer 9

governmental accounting standards board

set standards for government

Question 10

GASB

Answer 10

takes into account governmental entities 
federal units
   veterans hospitals
state units
 state universities
local gov 
 school districts
 municipalities
 port authorities
fund basis financial statements
general purpose financial statements
government wide financial statements
comprehensive annual financial report for governing body
  includes additional detailed info on specific aspects of the reporting entity
   introductory, financial, statistical

Question 11

modified accrual basis

Answer 11

currently available resources

Question 12

revenue

Answer 12

recorded when measurable and available to finance expenditures
accrual basis
property taxes collectible in current period or within 60 days after period end, firm intergovernmental grants, interest on investments
cash basis
fees for licenses and permits, parking meter receipts, intergovernmental grants that may be withdrawn

Question 13

expenditures

Answer 13

recorded when measurable and incurred

Question 14

governmental

Answer 14

revenues: any increase in net current financial resources other than from other financing sources
expenses/expenditures: any decrease in net current financial…..

Question 15

funds

Answer 15

a fiscal and accounting entity with a self balancing set of accounts which are segregated for the purpose of carrying on specific activities in accordance with special regulations or restricitions

Question 16

fund accounting

Answer 16

designed primarily to meet internal reporting and control objectives

Question 17

governmental fund entities

Answer 17

dedicated to specific use
general fund
special revenue fund
capital projects fund
debt service fund
permanent fund

Question 18

proprietary fund entities

Answer 18

similar to business entities
enterprise fund
internal service fund

Question 19

fiduciary entities

Answer 19

when the government acts as an agent or trustee for resources that belong to others
trust funds
  a. pension
  b. investment trust fund
  c. private purpose trust fund
Agency fund

Question 20

pg 848

Answer 20

shows the different type of funds

Question 21

operating statement model

Answer 21

financial resources inflows (by source)
-financial resources outflows (by function)
=change in fund balance

Question 22

general fund

Answer 22

accounts for all financial resources that are not accounted for in another fund
accounts & transactions are more numerous than any other fund

Question 23

special revenue fund

Answer 23

accounts for the proceeds of specific revenues sources

Question 24

capital project fund

Answer 24

pg 848

Question 25

debt service fund

Answer 25

848

Question 26

permanent fund

Answer 26

848