F10

Question 1

Cost components of municipal landfill closures

Answer 1

Equipment to be installed
Facilities to be constructed
Gas monitoring system
Cost of final cover/capping

Question 2

Internal service fund examples

Answer 2

Central janitorial departments
Central garages
Central purchasing departments
Vehicle maintenance pool for county vehicles

Question 3

Enterprise fund characteristics and examples

Answer 3

Primarily (>50%) supported by user fees
Self-sustaining activities
Examples:
Public utilities/hospitals/universities
Public transportation systems
Airports
Public housing
Lotteries

Question 4

Criteria of an Enterprise fund

Answer 4

(One of the following)
Activity is financed with debt secured solely by the revenue from fees and charges
Laws require cost of services be recovered by fees
Fees and charges are established in pricing policies.

Question 5

The orientation of accounting and reporting for proprietary funds is on _________
For governmental funds is on _____________

Answer 5

Income determination;

Source, use and balance of current financial resources

Question 6

JE to record internal service fund billing another fund for services provided

Answer 6

DR Due from other funds

CR Operating Revenues Control

Question 7

Required/optional activities to report as supplementary information

Answer 7

Required:
Construction reporting under modified approach
Comparison of general fund budgets to actual fund activity
Optional:
Budget variances (not significant)
Presentation of FS of non-major fund

Question 8

Fiduciary fund characteristics

Answer 8

Assets are controlled by government
Assets are not derived from revenues generated by the government
Government control of assets is not compromised by external restraints
Government does not have administrative involvement (This is a special revenue fund)

Question 9

GASB Comprehensive Annual Report components

Answer 9

Introductory Section (unaudited)
Basic Financial Statements and Required Supplementary Information (Audited)
Statistical Section- 10 years of selected and economic financial date

Question 10

Components of Basic FS and Supplementary section

Answer 10

(Order is important!)
Management's discussion and analysis- supplementary
Government-wide financial statements
Fund financial statements
Notes to the financial statements
Required supplementary information

Question 11

Governmental reporting Accountability types

Answer 11

Operational- Government-wide FS report the extent the government met operating objectives
Fiscal- Fund FS demonstrates that the entity’s actions have complied with public decisions

Question 12

Primary government criteria

Answer 12

Seperately elected governing body
Legally seperate, AND
Fiscally independent of other state and local governments

Question 13

Blended Presentation of a Component Unit is appropriate when:

Answer 13

Board of primary government and component unit are the same
Component exclusively serves primary government OR
Organization is not a legal entity

Question 14

Required Reports in Fund Financial Statements

Answer 14

Governmental funds- Balance Sheet, Statement of revenues, expenditures, and changes in fund balance
Proprietary Funds- Statement of Net Psition, Statement of revenues, expenses, and changes in net position
Fiduciary Funds- Statement of fiduciary net position, Statement of changes in fiduciary net position

Question 15

Option to not capitalize Artwork and Historical Treasures criteria

Answer 15

Collection is held for public exhibition, not for money
Collection is protected, preserved
There is a policy that proceeds from sales of items will be used to acquire other items

Question 16

Program Revenue

Answer 16

Revenues directly associated with the function or program on full accrual basis.
Charges for Services
Operating Grants and Contributions- restricted to program
Capital Grants and Contributions- restricted to program

Question 17

Modified Approach for capitalizing infrastructure

Answer 17

Infrastructure expenditures are not capitalized except for capital outlays that result in additions or improvements

Question 18

Capital and Related Financing Activities

Answer 18

Cash from issuing debt associated with capital assets
Interest expense
Inflows from capital grants
Inflows from contribution activity and special assessments associated with capital assets
Proceeds from sale of revenue bonds

Question 19

Operating activities

Answer 19

Inflows from sales of goods and services
Outflows to suppliers or employees
Inflows from interfund reimbursement
Payments to other funds for services including in lieu of taxes
Transactions not falling into one of the other 3 categories

Question 20

Investing activities

Answer 20

Cash flows associated with loans to others
Interest income
Cash flows associated with equity transactions

Question 21

Noncapital Financing activities

Answer 21

Cash flows from issuing debt for non capital purposes
Interest expense (except for capital purposes)
Cash receipts from grants or subsidies
Cash frrom property taxes
Operating transfers

Question 22

Reconciliation: Government fund balance to Net position from government activities

Answer 22

Fund Balance 
\+ Capital assets (existing and current)
- Accumulated depreciation
- Non-current liabilities
\+ Reduction of deferred inflows
- Accrued interest payable
\+ Internal service fund net position
= Net position

Question 23

Reconciliation: Change in Government fund balance to Change in net position

Answer 23

Net change in fund balance
+ Capital outlay (current year purchases)
+ Principal payments on non-current debt
- Asset disposals (book value)
- Other financing sources (debt proceeds)
+ Unavailable revenue (that’s been accrued
- Accrued interest expense
- Depreciation expense
+Internal service fund net revenue
= Change in Net Position

Question 24

JE to recognize measureable but unavailable revenue in adjusting to government-wide FS

Answer 24

DR Deferred Inflows

CR Revenue

Question 25

JEs to recognize non current assets purchased in prior years on government wide statement of net position

Answer 25

DR Capital assets
CR Net position

DR Net position (beginning)
CR Accumulated depreciation

Question 26

What is the minimum budgetary information that must be reported in supplementary schedules?

Answer 26

Original budget
Final appropriations budget
Actual inflows/outflows
Balances on a budgetary basis