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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
How are the assets of an investment trust fund treated different for the city-owned fund vs funds from other governments?
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
26
Deferred compensation plans go to which fund?
Pension fund (and other EE benefits)
27
What two types of accountability does government reporting focus on?
Operational accountability and fiscal accountability
28
Operational accountability
Answers are we efficiently and effectively meeting our objectives? Gov wild financials answer this
29
Fiscal Accountability
In compliance with public decisions concerning raising and spending of public funds in the short term?
30
What categories does the government wide financial statement cash flow have?
There is no statement of cash flows for government wide financials
31
What required supplementary information is there for gov wide financials?
Pension, Budget, and Infrastructure info
32
What is CAFR?
Comprehensive Annual Financial Report Non GAAP
33
Sections of CAFR
Intro (unaudited) Basic financial and required supplementary info (audited) Statistic section (unaudited)
34
SELF test
Test determines if you are a primary government item Separately elected governing body? Legally separate Fiscally independent?
35
Examples of special purpose local governments
Hospital, school district
36
Examples of component units in gov reporting
Board of Ed and Rescue Squad
37
Blended presentation for component unit requirements
Board is substantively the same as primary gov - OR - Unit serves primary gov exclusively
38
Basic financial statements for general purpose gov units
Gov wide financials, fund financial statements; and notes to financials
39
Integrated Approach
Operational and fiscal accountability is shown individually and show relationship there-in between via a reconciliation
40
A statement of activities of the gov wide financials is designed primarily to provide info to assess what?
Operational accountability
41
Is MD+A required supplementary info or part of the basic financial statements for general purpose gov units?
Required supplementary info
42
Financial statement names for gov wide financials
Statement of net position | Statement of activities
43
Component unit - blended or discrete if not a separate legal entity?
Blended. Must be a separate legal entity to be discrete (but still fail the SELF test)
44
What activities should be excluded from gov wide financial statements?
Fiduciary Activities - b/c these funds hold money for others
45
What is included in the introductory section of the CAFR?
Letter of Transmittal Org Chart List of Officers
46
What order does the MD+A get placed in the gov wide financial statements?
First
47
Impairment
Reduction in asset life / reduced utility / or physical damage
48
Prior year taxes collected between 60 and 90 days into current year - this year's revenue or last year's?
Not Measurable and available - so this year's taxes
49
SOC gov accounting
SOC away the revenue Service charges Operating grants and contributions Capital grants and contributions Grants are restricted cash
50
Defered inflows are coupled with
Liabilities
51
Deferred outflows are coupled with
Assets
52
Compensated absences for gov liability should be calculated with the salary at what date?
Balance sheet date
53
Acquisition through forfeiture of a capital asset, what measurement basis should the gov record?
Lower of cost or market Unlike donated assets, which are recorded at fair value
54
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?
Liability | Cash
55
Modified approach to capitalizing gov infrastructure
Expense all but capitalize additions. No depreciation
56
Enterprise fund interest income statement of cash flows section
Investing NOT operating like in commercial
57
Major fund status = what?
General fund OR ( 10% rule AND 5% rule ) revenues / expenditures assets / liabilities NOT fund balance / net position
58
Where does the cash inflow from issuing bonds to finance city hall construction go on the gov statement of cash flows?
It doesn't because it would be a part of the capital projects fund which does NOT have a statement of cash flows
59
Where do cash receipts from grants / subsidies for operating purposes go on the cash flows for governmental not-for-profits?
Noncapital financing
60
Where does cash paid to other funds (other than interfund services) go on the gov statement of cash flows?
Noncapital financing
61
Cash payment in lieu of taxes from enterprise fund to general fund, what category on gov statement of cash flows?
Operating This is cash payment for interfund services
62
Are principal payments expenses in full Accrual?
No - they reduce liability
63
Are principle payments expenses in modified Accrual?
Absolutely - there is no liability to reduce so they must be expenses

FAR MC (10 decks)

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