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Question 1

what are the characteristics of prop. funds?

Answer 1

• treat like a customer, not citizen
• uses full accrual and econ. res’s meas. focus
• S = funded by charges for building maint., janitor duty, and printing for internal dept’s
• E = primarily self-supp’d (>50%) by fees from ext. cust’s
  (transit + utilities)

.. E funds are req’d when 1 of these are met:

(1) act. of fund fin’d by debt sec’d by pledge of fee rev.
(2) laws req. collection of fees to recover costs
(3) pricing policies modeled to produce fees to recover costs

Question 2

what is included in the statement of NP (BS) for prop. funds?
(includes FA + LTD)

Answer 2

A’s + def’d outflows
(L’s + def’d inflows)
————————–
= NP

Question 3

what is included in statement of R, E, and changes in fund NP (IS)?

Answer 3

Op. rev
(op exp)
\+nonop rev/(nonop exp)
-----------------------------------
= change in NP

*transfers = nonop.

Question 4

what are the characteristics of Fid. funds?

Answer 4

• uses full accrual and econ. res. meas. focus
• P = funds from pensions of emp. ben’s and plans
• A = funds for res’s in temp. custody of gov. unit
  (acts as mediator)
• P = private purp. funds held for benefit of specific indiv’s, private org’s, or other gov’s
  (often record escheat prop)
• I = invest. funds held for investment pools

Question 5

what is included in the statement of Fid. NP for Fid. funds (BS)?

Answer 5

A’s + def’d outflows
(L’s + def’d inflows)
—————————–
= NP

Question 6

what is included in the statement of changes in Fid. NP (IS)?

Answer 6

additions
(deductions)
————–
= change in NP

*add’s and deduct’s are transfers

Question 7

under mod. accrual, when is rev. recog’d?

Answer 7

when they are avail. and measurable

Question 8

can a local gov. unit have funds in both accrual and mod?

Answer 8

yes, they can

Question 9

what is recorded as a liability in the gen. fund FS’s?

Answer 9

an amt to be paid from CY fin. res’s

Question 10

how do we convert from commercial to full accrual accounting?

Answer 10

IS closed to RE, then roll the BS forward

Question 11

how do we convert from full accrual to mod. accrual accounting?

Answer 11

“BAE BAE”, then close to BS and roll forward

Question 12

what is “BAE BAE”?

Answer 12

B - used to control spending

A - emphasizes flow of CY fin. res’s

E - used to record PO’s and aid in control of spending

Question 13

what are the sources of gov’l resources in rev. and OFS’s?

Answer 13

• rev = derived taxes from IT+sales and imposed taxes from property + real estate along with fines and penalties
• OFS = debt proceeds (bonds+notes) and interfund transfers

Question 14

what is the initial JE for “BAE BAE”?

Answer 14

Dr: est’d rev
Cr: approp

*BC is plug for diff.
(Dr is deficit, Cr is surplus)

Question 15

what is the EOY JE for “BAE BAE”?

Answer 15

Dr: approp
Cr: est’d rev

*BC is plug, but reverse entries for exact amt

Question 16

how is non-exch. rev calc’d in “A”?

Answer 16

20X1 collections Jan-Dec
+ 20X2 items O/S 60 days
—————————————-
= Rev

Question 17

what are the types of non-exch. rev?

Answer 17

derived tax and imposed non-exch. rev’s

*for imposed, receivables are recorded when gov. has enforceable legal claim
when prop. tax is levied

Question 18

what is the JE for accrual of real estate prop. taxes levied w/ est’d amt of unc.?

Answer 18

Dr: real prop. T/R - current
Cr: rev’s - prop taxes
Cr: allow for unc. - current

(rev. when billed)

Question 19

what is the JE for collection of prop. taxes?

Answer 19

Dr: cash
Cr: real prop. T/R - current

Question 20

what is the JE to reclassify rec’s to delinquent?

Answer 20

Dr: prop T/R - delinquent
Cr: prop T/R - current