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Question 1

are internal service finds related to central activities?

Answer 1

yes

Question 2

how are revenues and exp’s det’d in prop. funds?

Answer 2

• operating rev = billings + collections for svc’s b/w funds
• op exp = normal exp’s related to delivery of svc’s
• nonop rev’s = int earnings
• nonop exp’s = int exp

Question 3

what is the JE for LTD to another fund?

Answer 3

Dr: cash
Cr: due to other fund

Question 4

what is “RUN” to “SE” your NP?

Answer 4

• R = restricted fund
• U = unrestricted fund
• N = net invest in cap A
• all in SE fund FS’s

Question 5

are prop. funds the only funds that have CF’s?

Answer 5

Yes

Question 6

what are the rev’s and exp’s in “E” funds?

Answer 6

• op rev = charge for svc’s, misc op’s
• nonop rev = shared rev (taxes), interest
• op exp = object class’n
  (personal svc, utilities, DE)
• nonop exp = int exp

Question 7

what are the items in the statement of R, E, and change in NP?

Answer 7

• contr’d cap comes after nonop items
• special and extraordinary items come after
• transfers displayed last

Question 8

what is “INCASET”?

helps memorize IS items for prop. funds

Answer 8

Income
Nonop
Cap. contr
Add's to endowments
Special items
Extraord. items
Transfers

Question 9

how is the statement of NP calc’d?

Answer 9

(A+def’d outflow)
+ (L+def’d inflow)
————————-
= NP

Question 10

how is statement of R, E, and change in NP calc’d?

Answer 10

(op rev - op exp)
\+ (nonop rev - nonop exp)
\+ cap contr and transfers
\+ BB
----------------------------------
= change in NP

Question 11

how is the statement of CF’s presented?

Answer 11

*direct method is req’d

CFO
\+ CF noncap. FA
\+ CF cap. FA
\+ CFI
-------------
= reconc. of op inc/loss
(reconc's to OI, not NI)

• CFI and CFF reversed
• CF noncap includes TAN’s

Question 12

what should MSWLF owners and operators include in their exp’s?

Answer 12

• cost of equip. expected to be installed to monitor gas buildup
• cost of final cover to be applied to landfill

Question 13

when are act’s req’d to be reported as “E” funds?

Answer 13

(1) act. is fin’d w/ debt secured solely by pledge of net rev. from fees and charges
(2) laws and reg’s req. cost of providing svc’s to be recov’d thru fees
(3) pricing policies estab. fees and charges designed to recover costs

Question 14

in the prop fund, how is equip acq’d thru a cap. lease arrangement accounted for?

Answer 14

Dr: Equip
Cr: cash

Question 15

what is the JE for lease pmt in a prop. fund?

Answer 15

Dr: cap. lease payable (P)
Dr: exp (int)
Cr: cash

Question 16

are private NFP’s always req’d to recognize DE?

Answer 16

yes

Question 17

do op. seg’s req. discrete fin. info?

Answer 17

yes

Question 18

changes in value of ARO must be measured by what rate?

Answer 18

credit-adj’d risk free int rate

Question 19

how are finders fees and issuance costs for equity sec’s treated in business combo’s?

Answer 19

• finders fees = out-of-pocket costs and are exp’d

- issuance costs = fees for equity sec. issues and are charged to PIC account

Question 20

what is the JE for receipt of money from other funds for Fid. funds? (rev sources)

Answer 20

Dr: cash
Cr: add’s: emp. contr - restricted