#3 Flashcards
When is revenue recognized under modified accrual basis of accounting?
Revenue is recognized for the period in which they become available and measurable.
What are the ingredients of Faithful Representation?
Completeness, Neutral, and Free From Error
What are the ingredients of Relevance?
Predictive value, Confirmatory Value, and Materiality
What are imposed non-exchange revenues?
Imposed non-exchange revenues represent taxes imposed on non-exchange transactions (fines) or wealth (property taxes).
What are derived tax revenues?
Derived tax revenues represent taxes imposed on or derived from exchange transactions such as commercial sales (sales tax) and taxpayer income (income taxes).
What is the only fund that should show a positive amount in its unassigned fund balance classification?
General Fund.
Financial statements for which fund type generally report net position in their individual fund financial statements?
Proprietary funds are the only financial statements to contain Net Position. (Enterprise Fund and Internal Service Fund)
Land and other real estate held as investments in a government’s permanent fund should be report at what?
Investments in a permanent fund are typically required to be accounted for at fair value.
What is included in OCI?
PUFIER Pension adjustments Unrealized G/L (AFS Securities) Foreign Currency Items Instrument specific credit risk Effective Portion CF Hedge Revaluation Surplus (IFRS only)
What intangible assets are subject to the recoverability test?
The recoverability test is only performed on intangible assets with a limited life. (Patent)
Which type of activities are excluded from the statement of net position in the government wide financial statements?
Fiduciary activities (custodial, investment, private purpose, and pension and other EE benefit funs) are excluded from the statement of net position in the government wide financial statements.
What is the purpose of the government wide financial statements?
Operational Accountability
What is the purpose of the fund financial statements?
Fiscal Accountability
What are the three ways net assets are divided in Government-wide financial statements?
Net investment in capital assets
Restricted
Unrestricted
