F6 - NFP Accounting and Governmental Accounting

Question 1

Which basis of accounting is used for each of the three generic fund categories?

(Governmental, Proprietary, & Fiduciary)

Answer 1

Governmental - Modified Accrual
Proprietary - Full Accrual
Fiduciary - Full Accrual

Question 2

What are the three generic fund categories?

Answer 2

Governmental, Proprietary, and Fiduciary.

Question 3

If a hospital receives donated medicine, how should it be recorded?

Answer 3

Dr. Expense
Cr. Other operating revenue (not typical hospital operations)

Question 5

What are unmatched receiving reports?

Answer 5

In counting inventory, a receiving report is produced by the crew receiving & counting inventory. Unmatched receiving reports would mean that no corresponding invoice was found for inventory received and counted.

Question 6

When is inventory recorded on the books?

Answer 6

Inventory SHOULD be recorded when it is received. If an invoice has been received, but goods have not yet been received, then an adjustment to the books may be necessary.