Chapter 19 Flashcards
How are capital expenditures treated in governmental fund accounting?
They are expensed
How are capital expenditures treated in government wide financial statements?
They are capitalized
Define General Capital assets
are all capital assets not reported in the proprietary funds or the fiduciary funds.
What type of accounting does the general fund use?
Modified Accrual
How do you account for equipment in a landfill
Expensed
Treatment of donated works of Art to a government entity
may be capitalized if put on display, only depreciated if the work is exhaustible
Which activities should be excluded from government wide financial reporting?
Fiduciary activities
In government wide financial reporting, are business type and government type activities reported together?
No they are separately presented
Program revenues include
(1) charges for services
(2) program-specific operating grants and contributions, (3) program-specific capital grants and contributions.
Define general revenues
Revenues not required to be reported as program revenues. All taxes are general revenues.
Define special items
Special items are significant transactions or other events within the control of management that are either unusual OR infrequent.
Internal service funds are listed as governmental or business type activities
Govenrmental
in government wide financials how are receivables or payable between a fiduciary fund classified
They are reclassified as being owed to a third party
What are the 3 components of net position in government wide financials
- Net investment in capital assets
- Restricted net position
- Unrestricted net position
Where does cash for transfers from an internal service fund show up on the statement of revenues and expenses and changes in net position?
An item below non-operating revenues and expenses.
In proprietary funds, what method do you prepare a statement of cash flows
The direct method
