40

Question 1

where does cap ex’s go in CF’s?

Answer 1

they are outflows in CFI

Question 2

how is EB cash amt on CF’s calc’d under direct method?

Answer 2

BB + CFO, CFI, CFF act’s = EB

Question 3

how is cash rec’d calc’d for CF’s under direct method?

Answer 3

NS +/- A/R +/- unearned rev +/- sale or purch of Trading sec’s

Question 4

is inv. write-down a noncash event?

Answer 4

yes, it will not be included in CF’s

Question 5

what does the GAO do?

Answer 5

prescribes auditing std’s

Question 6

what is the hierarchy estab’d by GASB 55?

Answer 6

A - GASB statements and interpretations

B - GASB bulletins, AICPA audit guides, and AICPA statement of pos.

C - AICPA practice bulletins

D - (lowest) implementation guides

Question 7

what is the req’d FR’ing for GASB 34?

Answer 7

basic FS’s + notes and RSI

Question 8

what is the gen. purp. ext. FR’ing?

Answer 8

Basic FS’s + notes, RSI, and CAFR

Question 9

what are the characteristics of gov. FR’ing?

Answer 9

“U R MICE”

U - understandability
R - reliability
M - make a diff. - relevance
I - in timeliness
C - consistency yr over yr
E - entity-to-entity comparab.

Question 10

what are the limitations of gov. FR’s?

Answer 10

• approximate amt’s used
• only 1 source of info
• may not meet diverse needs
• cost-ben relationships must be considered

Question 11

what is the purpose of presenting separate fund FS’s for gov and prop funds?

Answer 11

to report add’l and detailed info about the primary gov

Question 12

what characteristic of a gov. entity is most difficult to report?

Answer 12

relevance b/c we have to find info that bears a logical relationship w/ the needs of its purpose

Question 13

fund acct is used by gov’l units with resources that must be:

Answer 13

segregated for purp. of carrying on specific act’s or attaining certain obj’s

Question 14

do financial control and legal restrictions lead to the use of fund acct?

Answer 14

yes, they do

Question 15

how are the amount of funds established determined?

Answer 15

by the min. # of funds consistent w/ legal req’s and sound fin. admin.

Question 16

what demonstrates interperiod equity?

Answer 16

• a balanced budget is adopted

- FR’ing should help users see if CY rev’s are sufficient to pay for svc’s

Question 17

what are the 3 primary user groups of external FR’ing pf a state gov?

Answer 17

(1) citizens (advocate groups)
(2) legislative/oversight groups
(3) investors/creditors

Question 18

what are the characteristics of the GRSPP fund?

no profit motive

Answer 18

*uses mod. accrual and CY fin. res’s meas. focus
(no LTD or FA)

• G = ordinary op’s CY
  (police, helps public)
• R = holds rev from special taxes or restrictions for gov activity
• S = general obl. debt
  (all debt of gov funds)
• P = cap projects hold funds for acq/constr. of major cap. assets
• P = perm funds hold legally restricted amt’s to supp. gov programs
  (income, not “P”, will be used to supp. public programs)

Question 19

what is in the BS for gov funds?

determines fin. pos.

Answer 19

CA + def'd outflows
=================
CL + def'd inflows
\+ fund bal.
---------------------------
= total CL, def'd inflows,
  and fund bal's

Question 20

what is in the statement of Rev, Expend, and change in fund bal for gov funds?

Answer 20

Rev
- expend's 
\+ OFS/ (transfers)
----------------
= net change in fund bal.