Chapter 4 (REVENUES AND OTHER RECEIPTS)

Question 1

gross of inflow of economic benefits or services: increase in equity; received or receivable by the entity

Answer 1

Revenue

Question 2

fund available for any purpose other than designated funds

Answer 2

a) General fund

Question 3

fund designated for special purposes

Answer 3

b) Special funds

Question 4

held by government agency or public officer (trustee, agent, or administrator)

Answer 4

c) Trust fund (fiduciary fund)

Question 5

all funds from income gov agency: avail to spend

Answer 5

d) Revenue fund

Question 6

held in authorized depository bank; recipient agency retains control

Answer 6

e) Depository fund

Question 7

– facilitate funding of priorities activities: sourced from specific fees, grants and donations.

Answer 7

f) Special Account in the General fund

Question 8

president allocates for special programs: not accountability of any gov agency

Answer 8

g) Special purpose funds (SPFs)

Question 9

• entity receives assets or services: gives directly approximately equal value in exchange (ex. Sale of goods)

Answer 9

Exchange transactions (reciprocal transfers)

Question 10

Measurement of Exchange transactions (reciprocal transfers)

Answer 10

Fair value

Question 11

a. Service Income
b. Business Income

Answer 11

Sales of Goods or provisions of services

Question 12

permit, registration, franchising, licensing, legal fees.

Answer 12

Service Income

Question 13

school, examination, rent/lease income, hospital fees

Answer 13

Business Income

Question 14

a. Sales of Goods or provisions of services
b. Interest, Royalties, and dividends

Answer 14

kinds of Exchange transactions (reciprocal transfers

Question 15

charge for the use of cash

Answer 15

Interest Income

Question 16

fees paid use of trademarks, patents

Answer 16

Royalties

Question 17

share of national gov from GOCCs

Answer 17

Dividends

Question 18

• receives value w/o directly approximately equal value in exchange.

Answer 18

Non-exchange transactions (nonreciprocal transfers)

Question 19

Measurement of Non-exchange transactions (nonreciprocal transfers)

Answer 19

Cash basis

Question 20

compulsory payments; do not include fines & penalties

Answer 20

Taxes

Question 21

monetary sanctions from breach of laws

Answer 21

Fines & penalties

Question 22

voluntary transfers of asses/services; free

Answer 22

Gifts, Donations and Goods/Services in-kind

Question 23

Revenue is recognized when significant risks and rewards are transferred; control is not retained; inflow of economic benefits is probable; and revenue and related costs can be measured reliably.

Answer 23

Sale of goods

Question 24

Revenue is recognized on a
straight line basis.

However, revenue is recognized by reference to the stage of completion if this can be measured reliably.

When the outcome cannot be estimated reliably, revenue is recognized only to the extent of recoverable costs.

Answer 24

Rendering of Services

Question 25

Recognized on a time. proportion basis using effective interest method.

Answer 25

Interest

Question 26

Recognized based on the substance of the agreement

Answer 26

Royalties

Question 27

Recognized when right to receive payment is established.

Answer 27

Dividends

Question 28

If similar, no revenue is recognized. If dissimilar, revenue is recognized at the (1) FV of asset received or (2) FV of asset given up. Any cash paid or received is adjusted to the FV.

Answer 28

Exchanges of goods or services

Question 29

If without condition, recognized immediately. If with condition, initially recognized as liability until condition is satisfied.

Answer 29

Gifts, Donations and Goods In-kind

Question 30

Not recognized as revenue.

Answer 30

Services In-kind

Question 31

Carrying amount of debt forgiven is recognized as revenue.

Answer 31

Debt Forgiveness

Question 32

Recognized as revenue measured at fair value, if asset recognition criteria are met.

Answer 32

Bequests

Question 33

initially recognized as liability until condition is satisfied.

Answer 33

Grant with Condition

Question 34

Not recognized.

Answer 34

Pledges

Question 35

Difference between fair value and transaction prior is recognized as revenue, non-exchange transaction

Answer 35

Concessionary Loans