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FAR MC > F10 > Flashcards

F10 Flashcards

1
Q

What is the most significant characteristic defining an enterprise fund?

A

Pricing policies of the activity establish fees and charges designed to recover its cost

Tip: Fees and charges - NOT taxes

Self sustained by fees and charges

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2
Q

Gain vs special item on proprietary fund financials

A

Must be material to be considered a special item. A gain of 1000 is not considered a special item. A gain of 1,000,000 on the sale of land would be

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3
Q

JE to establish enterprise fund from general fund cash

A

Cash
Interfund Transfers In

If capital assets are donated

Capital Assets
Contributions

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4
Q

What type of fund is the lottery?

A

Enterprise fund

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5
Q

What fund(s) should a public university use for their accounting?

A

Can choose between using the proprietary fund model (FA, Depr, LTD) or the governmental fund model (no FA, no depr, no LTD)

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6
Q

What financial statements do proprietary funds require?

A

BS / IS

But NO statement of cash flows

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7
Q

What financial statements do agency trust funds require?

A

Only the balance sheet

NO IS
NO statement of cash flow

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8
Q

When agency funds collect fees, do they recognize revenue?

A

No, the fees are passed onto the general fund

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9
Q

Examples of clearance funds

A

Alimony, child support, food stamps

No monitoring

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10
Q

JE to record Receivable due to capital projects fund from private purpose fund

A

Due from private purpose trust
Interfund transfer from the private purpose trust

Cash
Due from private purpose trust

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11
Q

True or false, each investment pool must be reported separately for the investment funds

A

True

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12
Q

Plan assets for investment funds and pension funds are reported at what measurement basis?

A

Fair value

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13
Q

What fund reports a fiduciary net position as a single line item?

A

Pension trust funds

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14
Q

Are fiduciary funds reported on the government wide financial statement?

A

No

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15
Q

Fiduciary funds use special terms for revenues and expenses - what are they?

A

Additions and deductions

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16
Q

Which fund reports no income statement?

A

Agency fund

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17
Q

Which funds report a statement of cash flows?

A

SE only

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18
Q

Pension fund receives cash of employer contributions JE

A

Cash

Additions: Employer Contributions - Restricted

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19
Q

What are inflows to the pension fund called?

A

Additions

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20
Q

What are outflows to a pension fund called?

A

Expenditures

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21
Q

Where are pension fund liabilities displayed?

A

Government wide financials (or the specific fund, but not the pension fund!)

Remember: deferred outflows and inflows

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22
Q

Is a reduction in pension liability a deferred inflow or a deferred outflow?

A

Deferred inflow (benefit)

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23
Q

An agency fund (such as a tax collection fund) - how do they record collection of fees?

A

Liability - due to other funds

Will go to the general fund

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24
Q

Escheat property

A

Abandoned property that reverts to gov - held in the private purpose trust

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25
Q

How are the assets of an investment trust fund treated different for the city-owned fund vs funds from other governments?

A

City-owned funds: would display in the general fund as assets of investing fund

Funds from other governments - would
be kept in the investment trust fund

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26
Q

Deferred compensation plans go to which fund?

A

Pension fund (and other EE benefits)

27
Q

What two types of accountability does government reporting focus on?

A

Operational accountability and fiscal accountability

28
Q

Operational accountability

A

Answers are we efficiently and effectively meeting our objectives?

Gov wild financials answer this

29
Q

Fiscal Accountability

A

In compliance with public decisions concerning raising and spending of public funds in the short term?

30
Q

What categories does the government wide financial statement cash flow have?

A

There is no statement of cash flows for government wide financials

31
Q

What required supplementary information is there for gov wide financials?

A

Pension, Budget, and Infrastructure info

32
Q

What is CAFR?

A

Comprehensive Annual Financial Report

Non GAAP

33
Q

Sections of CAFR

A

Intro (unaudited)
Basic financial and required supplementary info (audited)
Statistic section (unaudited)

34
Q

SELF test

A

Test determines if you are a primary government item

Separately elected governing body?
Legally separate
Fiscally independent?

35
Q

Examples of special purpose local governments

A

Hospital, school district

36
Q

Examples of component units in gov reporting

A

Board of Ed and Rescue Squad

37
Q

Blended presentation for component unit requirements

A

Board is substantively the same as primary gov
- OR -
Unit serves primary gov exclusively

38
Q

Basic financial statements for general purpose gov units

A

Gov wide financials, fund financial statements; and notes to financials

39
Q

Integrated Approach

A

Operational and fiscal accountability is shown individually and show relationship there-in between via a reconciliation

40
Q

A statement of activities of the gov wide financials is designed primarily to provide info to assess what?

A

Operational accountability

41
Q

Is MD+A required supplementary info or part of the basic financial statements for general purpose gov units?

A

Required supplementary info

42
Q

Financial statement names for gov wide financials

A

Statement of net position

Statement of activities

43
Q

Component unit - blended or discrete if not a separate legal entity?

A

Blended. Must be a separate legal entity to be discrete (but still fail the SELF test)

44
Q

What activities should be excluded from gov wide financial statements?

A

Fiduciary Activities - b/c these funds hold money for others

45
Q

What is included in the introductory section of the CAFR?

A

Letter of Transmittal
Org Chart
List of Officers

46
Q

What order does the MD+A get placed in the gov wide financial statements?

A

First

47
Q

Impairment

A

Reduction in asset life / reduced utility / or physical damage

48
Q

Prior year taxes collected between 60 and 90 days into current year - this year’s revenue or last year’s?

A

Not Measurable and available - so this year’s taxes

49
Q

SOC gov accounting

A

SOC away the revenue

Service charges
Operating grants and contributions
Capital grants and contributions

Grants are restricted cash

50
Q

Defered inflows are coupled with

A

Liabilities

51
Q

Deferred outflows are coupled with

A

Assets

52
Q

Compensated absences for gov liability should be calculated with the salary at what date?

A

Balance sheet date

53
Q

Acquisition through forfeiture of a capital asset, what measurement basis should the gov record?

A

Lower of cost or market

Unlike donated assets, which are recorded at fair value

54
Q

Equipment, facilities, and services previously included in the estimated current cost of closure of a landfill and lost closure care are now purchased. What is the JE?

A

Liability

Cash

55
Q

Modified approach to capitalizing gov infrastructure

A

Expense all but capitalize additions.

No depreciation

56
Q

Enterprise fund interest income statement of cash flows section

A

Investing

NOT operating like in commercial

57
Q

Major fund status = what?

A

General fund OR
( 10% rule AND 5% rule )

revenues / expenditures
assets / liabilities

NOT fund balance / net position

58
Q

Where does the cash inflow from issuing bonds to finance city hall construction go on the gov statement of cash flows?

A

It doesn’t because it would be a part of the capital projects fund which does NOT have a statement of cash flows

59
Q

Where do cash receipts from grants / subsidies for operating purposes go on the cash flows for governmental not-for-profits?

A

Noncapital financing

60
Q

Where does cash paid to other funds (other than interfund services) go on the gov statement of cash flows?

A

Noncapital financing

61
Q

Cash payment in lieu of taxes from enterprise fund to general fund, what category on gov statement of cash flows?

A

Operating

This is cash payment for interfund services

62
Q

Are principal payments expenses in full Accrual?

A

No - they reduce liability

63
Q

Are principle payments expenses in modified Accrual?

A

Absolutely - there is no liability to reduce so they must be expenses

FAR MC (10 decks)

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