Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FAR > F10 - Governmental Accounting: Part 3 > Flashcards

F10 - Governmental Accounting: Part 3 Flashcards

1
Q

What is the basic criteria to determine the reporting entity for a governmental unit?

A

FASDA!

  1. Financial interdependency.
  2. Accountability of fiscal matters.
  3. Selection of governing authority.
  4. Designation of management.
  5. Ability to significantly influence operations.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the components of the CAFR?

A

CAFR = 10K but for govmt.

  1. Intro.
  2. Basic FS and Supplementary Info
  3. Statistical Section (Unaudited).
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is included in the Intro section of the CAFR?

A
  1. Letter of transmittal.
  2. Org chart.
  3. Principal officers.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is included in the intro Basic FS & Supplementary info section of the CAFR?

A
  1. MD&A.
  2. Gov-Wide FS.
  3. Fund FS.
  4. Notes to FS.
  5. RSI.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is included in the Statitistical section of the CAFR?

A
  1. > 10 yrs of financial and economic data

2. Other data.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the focus of Government-wide financial statements?

A

Operational accountability.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a special purpose local government?

A 
One of the three primary governments (others are cities or states.
Primary government reports by itSELF!
S = Separately Elected governing body.
L = Legally separate.
F = Fiscally independent.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are component units?

A

An organization for which the primary government is financially accountable. Also, component units are financialy dependable on the primary government. Ex. ISD reports to City!
Key: These are similar to special purpose local governments!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the two presentations of component units?

A
  1. Discrete.

2. Blended.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the program revenue category types?

A

SOC!

  1. Charges for Services: Water fees, licenses, fines, etc.
  2. Operating Grants and Contributions: For specific programs.
  3. Capital Grants and Contributions: For specific capital programs.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the required approach of capital assets?

A

Normal! All assets are recorded and depreciated, and depreciation expense is classified within its functional category.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the modified approach of capital assets?

A

Infrastructure Assets are not depreciated when:

  1. The asset management system maintains inventory of assets, an asset condition assessment is made, and every year, an estimate of how much if would cost to preserve the asset is made.
  2. Documentation includes data on asset preservation.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the schedules that need to be presented in the modified approach of capital assets?

A
  1. A schedule reporting the condition of the government’s infrastructure.
  2. A comparison schedule of needed and actual expenditures to maintain the government’s infrastructure.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How do you record infrastructure asset expenditures?

A

As expenses, unless the outlays result in additions or improvements. If so, these additions or improvements are capitalized.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is my reconciliation on the Gov-Wide statement of activities for a fixed asset sold?

A

I need to reconcile and substract NBV!
Governmental fund reports entire proceeds only, but Gov-Wide would report the gain on disposal, so I would also need to remove the NBV that I didn’t remove from the Governmental fund.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the criteria for determination of major funds?

A

To be considered a major fund, a fund must be both >10% of its total individual revenues, expenditures/expenses, assets or liabilities AND 5% of its combined total revenues, expenditures/expenses, assets or liabilities.
Note! General fund is ALWAYS a major fund, even when the test is not met.

17
Q

What are the differences between the regular Cash Flow and the Governmental Cash Flow?

A
  1. Direct method is required.
  2. Rec operating income to net cash provided by ops. Rec includes depr, but not gains/losses.
  3. There are 3 cats: Op Activities, Investing Activities, Capital and Related Financing Activities, and Noncapital Financing Activities.
  4. Financing activities goes before Investing activities.
  5. Interest income are investing activities and not operating activities.
  6. Interest expense are capital or noncapital financing.
  7. Cap asset purchases are financing and not investing activities.
18
Q

What are the items included in CF Operating Activities?

A

Inflows: SIR/PTO-SEE

  1. From sales.
  2. From interfund reimbursements.
  3. From payments in lieu of taxes.
  4. Others that don’t go in investing, cap and noncap financing activities.

Outflows:
1. To suppliers or employees.

19
Q

What are the items included in CF Investing Activities?

A

Inflows & Outflows: LIE

  1. From loans to others
  2. Interest income (only inflow).
  3. From equity transactions.
20
Q

What are the items included in CF Capital and Related Financing Activities?

A

Inflows & Outflows: DIG-CS

  1. From issuing debt associated with cap assets.
  2. Interest Expense associated with cap assets.
  3. From capital grants.
  4. From contribution activity associated w/ cap assets.
  5. From special assessments associated w/ cap assets.
21
Q

What are the items included in CF Noncapital Financing Activities?

A

Inflows & Outflows: DIG-POT

  1. From issuing debt for noncap purposes.
  2. Interest Expense for noncap purposes.
  3. From noncap grants or subsidies.
  4. From nonrestricted property taxes.
  5. From operating transfers.
22
Q

What is included in Optional Supplementary Information?

A
  1. Combining statements for nonmajor funds.
  2. Variance between original and amended budget.
  3. Variance between amended and actual budget.
23
Q

What happens when a general fund or a major special revenue fund has a legally adopted annual budget?

A

A budgetary comparison schedule must be prepared.

24
Q

What are the three items that a budgetary comparison schedule needs?

A
  1. Original budget.
  2. Final amended budget.
  3. Actual amounts.
25
Q

What are the components of the MD&A?

A

per DIEM!

  1. Description of FS = Summary, analysis, reasons for YoY changes.
  2. Identity of the primary govmt.
  3. Economic conditions and outlook = how FS affect economy.
  4. Major initiatives = Cap asset and LT debt activity.
26
Q

What is the basis of accounting of a budgetary comparison?

A

Same basis of accounting of the adopted budget.

27
Q

How many periods does pension information need to be disclosed in the RSI?

A

10 years min.

If it hasn’t existed for 10 yrs, then whatever time it has existed.

28
Q

How do you reconcile Govt Funds Statements of Revenues, Expenditures and Changes in Fund Balance to Govt-Wide Statement of Activities?

A 
CPAS RIDES!
Net change in fund balance
(+) Cap Outlay
(+) Principal Payments on LT Debt
(-) Asset disposals (NBV)
(-) Sources (other financing sources-debt proceeds)
(+) Revenue (measurable but unavailable)
(-) Interest Expense (accrued)
(-) Depreciation Expense
(+) IRService Fund Net Revenue
(=) Change in Net Position of govmt activities
29
Q

How do you reconcile Govt Funds Balance Sheet to Govt-Wide Statement of Net Position?

A 
CAN-REDIS!
Government fund balance 
(+) Cap Assets
(-) Accum Depr
(-) Noncurrent Liabilities
(+) Reverse Deferred inflows (measurable but unavailable revenue)
(-) Interest Payable
(+) IRService Fund Net Position
(=) Net Position from govmt activities
30
Q

What is the criteria for Discrete Presentation?

A
  1. Benefit Std = Resources held by the TE org are for the near-exclusive benefit of primary gov.
  2. Access Std = Primary gov has access to a majority of resources held by TE org.
  3. Significance Std = Resources held by the TE are significant to the primary gov.

FAR (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions