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BAR CPA Exam > Additional Study set for notes BAR > Flashcards

Additional Study set for notes BAR Flashcards

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1
Q

What are the two financial statements for governmental wide financial statements?

A

Statement of net position (balance sheet)
Statement of activities (income statement)

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2
Q

What is the format of the statement of net position?

A

Assets
Deferred Outflows (Prepaid Expenses)
Liabilities
Deferred Inflowes (Deferred or unearned revenue)
Net Position (Equity)=Assets + Deferred Outflows - liabilities - deferred inflows

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3
Q

What does the statement of activities consist of?

A

Program Revenues
General Revenues
Expenses
Change in Net position

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4
Q

What type of accounting and how do governmental wide financial statements report assets/liabilities?

A

Accrual accounting
Economic resource focus: both short and long term assets/liabilities

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5
Q

How are interfund activities treated in government wide financial statements?

A

They are eliminated so they are not counted twice

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6
Q

How do you adjust from current resource focus to economic resource focus for government wide financial statements?

A

Add capital Assets
Subtract A/D
Add long term liabilities

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7
Q

: The primary fund that accounts for all financial resources except those required to be accounted for in another fund. It typically includes most of the basic services like police, fire, public health, and general administration.

A

general fund

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8
Q

These funds account for specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

A

special revenue funds

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9
Q

These funds account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

A

debt service funds

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10
Q

Used to account for financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the construction of major capital projects other than those financed by proprietary funds or trust funds.

A

capital projects funds

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11
Q

: Account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that benefit the government or its citizenry.

A

permanent funds

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12
Q

What are the two financial statements for governmental funds?

A

Balance Sheet
Statement of Revenues, Expenditures, and change in Fund Balances

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13
Q

What is the format for the balance sheet of a governmental fund?

A

Assets
Liabilities
Fund Balances: Non-spendable (inventory), Restricted, Committed, Assigned, Unassigned

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14
Q

What is the format for the statement of Revenues, Expenditures, and Changes in Fund Balances?

A

Revenues: Increase net current assets
Expenditures: Decrease in net current assets
Other Financing Sources/Uses: Transfers out or Transfer in
Change in Fund balance

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15
Q

Used to report any activity for which a fee is charged to external users for goods or services. Examples include utilities, airports, and public transportation systems.

A

enterprise funds

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16
Q

Used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government and its component units, on a cost-reimbursement basis. Examples include motor pools, centralized IT, and printing services.

A

internal service funds

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17
Q

What are the three financial statements for proprietary funds?

A

Statement of Net position (balance sheet)
Statement of Revenues, Expenses, and Changes in Fund Net position
Statement of Cash flows

18
Q

What is the format of the net position for proprietary funds?

A

Current and Non current Assets
Deferred Outflows(prepaid expenses)
Current and Non current Liabilities
Deferred Inflows (unearned revenue)
Net Position: Net investment in capital assets, restricted, unrestricted

19
Q

What is the format of the statement of revenues, expenses, and changes in fund net position?

A

Operating revenues
Operating expenses
Non-operating revenues and expenses
Transfer In/Out
Change in Net position

20
Q

What is the format of the statement of cash flows for proprietary funds?

A

Operating Activities
Non-capital financing activities
Capital and Related Financing activities
Investing Activities

21
Q

How is the net position portion of the statement of net position for a proprietary fund categorized?

A

Net investment in capital assets
Restricted funds
Unrestricted funds: Total Assets - Total Liabilities - Net investment in capital assets - deferred inflows)

22
Q

These are used to report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other post-employment benefit plans, and other employee benefit plans.

A

pension (and other employee benefit) trust funds

23
Q

These account for the external portion of investment pools reported by the sponsoring government.

A

investment trust funds

24
Q

These report all other trust arrangements under which the principal and income benefit individuals, private organizations, or other governments.

A

private-purpose trust funds

25
Q

These account for resources held by the government in a purely custodial capacity. This includes activities like collecting taxes on behalf of multiple governments or managing a school group’s funds

A

custodial funds (formerly Agency funds)

26
Q

What are the financing statements for fiduciary funds?

A

Statement of Fiduciary Net Position:
Statement of Changes in Fiduciary Net Position:

27
Q

What is the format for the statement of Fiduciary Net position?

A

Assets
Liabilities
Net Position

28
Q

What is the format of the changes in Fiduciary Net Position?

A

Additions: Include contributions from employers and employees (for pension trust funds), investment income, and other additions.
Comprise benefits payments, administrative expenses, and other deductions.

29
Q

Trust Principle: Since fiduciary activities are held in a trust or custodial capacity, they cannot support the government’s programs. Thus, they are __________ from the government-wide financial statements.

A

excluded

30
Q

Discuss the criteria defining the reporting entity and the basis of accounting—whether the government follows the accrual or modified accrual basis.

A

basis of presentation

31
Q

Indicate if it’s based on the flow of economic resources (full accrual) or current financial resources (modified accrual).

A

measurement focus

32
Q

What are three objectives of budgetary comparison reporting?

A

Demonstrate accountability
Transparency
Facilitate Analysis

33
Q

What are the three objectives of Required Supplementary Information (RSI) Other than MD&A?

A

Provide Context
Enhance transparency
Facilitate Analysis

34
Q

The component unit’s governing body is substantially the same as the governing body of the primary government, or ○ The component unit provides services entirely or almost entirely to the primary government.

A

criteria for blended component unit

35
Q

How to convert governmental fund financial statements to government activities reported in the government wide financial statements for capital assets?

A

Add capital assets at historical cost
Subtract A/D
Add/Subtract gains/losses from sales

36
Q

How to convert governmental fund financial statements to government activities reported in the government wide financial statements for long term liabilities?

A

Add long term liabilities
subtract principal payments made during the year

37
Q

How to convert governmental fund financial statements to government activities reported in the government wide financial statements for revenues and expenditures/expenses adjustments?

A

Accruals: Recognize revenues when earned and expenses when incurred, regardless of when cash is received or paid.
Subtract: Deferred revenues in the governmental funds that do not qualify as unearned revenues under the accrual basis.
Add: Accrued interest payable on long-term debt, which isn’t recognized in the governmental funds.

38
Q

How to calculate net investment in capital assets

A

Capital Assets-Related debt

39
Q

How to calculate restricted net position?

A

The amount of restricted assets

40
Q

How to calculate unrestricted net position?

A

Total Net Position
Less: Net investment in Capital Assets and Restricted Net Position

41
Q

What is the journal entry for recognition of Restricted Cash?

A

DR: Cash - Restricted
CR: Revenue - Restricted

BAR CPA Exam (13 decks)

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