12/10 Final Review Flashcards
final exam is on chapter 11 and 12
oh yeah,
derivative underlying, effective hedging
80%-125% you have to look at the terms and other calculations, know the percentage
remeasurement
monetary, nonmonetary
know the different statements in government accouting
there will be different statements, in each type of fund
proprietary
fiduciary
enterprise funds
any homework problem
fair game
recreating Journal Entries
we don’t worry about encumbrances and budgeting
homework problem that we should know
E17-2 know it, do it, live it
expense vs expenditures
expenditures - governmental funds
proprietary funds - no expenditures, we have expenses because it is run like a business
expenditure - signifies you are using money to acquire something, we expend all of the amount right when it is spent
expense - we don’t expense the entire amount we expense it as it is used and we sale inventory
fiduciary funds
on accrual basis like proprietary funds they use expenses
difference between purchase method of accounting vs. consumption method of accounting
table 17-5 purchase method of accounting - we buy inventory that we are using in house. JE Expenditures 2000(full amount) Accounts Payable 2000(full amount) Inventory of Supplies 1400 Nonspendable 1400 Fund Balance - Non spendable 900 Inventory of supplies (remaining) 900 we expend all of the amount
consumption method
Expenditures 2000 A/P 2000 Inventory of Supplies 1400 Expenditures 1400 Fund Balance - Unassigned 1400 fund Balance - nonspendable 1400 Expenditures 900 Inventory of supplies 900 Fund Balance Non spendable 900 fund balance un assigned 900 we expend the amount we used this one is preferred
major vs non major funds
major funds - all are presented in their own column
non major funds - all non major parts are netted together
10% if the fund meets this
you look at how the individual fund we are testing compares to all governmental funds
then we look at total
if it meets both of these we give it its own column
hedge something without using hedge accounting
review it if you elect hedge accounting you have to identify it right up front
you have to say reason why
what you are using it for
why it will be effective
test hedge effectiveness - maybe every month
one uses OCI rather than the income statement
know all def of derivatives hedges and effective or ineffective hedge
efffective hedge OCI
not using hedging it goes through the income statement.
if you hedge you have to market both the receivable/payable and the hedge itself
do problem E11-10 again.
