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FAR OVERALL > F8 > Flashcards

F8 Flashcards

1
Q

What is the purpose for separate fund FS?

A

Should be presented for govt’l and proprietary funds to report additional & detailed info about the primary govt

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2
Q

What is the characteristic of service efforts and accomplishments is the most difficult to report for a govt entity?

A

Relevance

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3
Q

The measurement focus of governmental type funds is on the determination of

A

Current Financial Resources

Financial Position

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4
Q

Is income a determination for governmental fund measurement focus?

A

No.

Current Financial Resources
Financial Position

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5
Q

What is the orientation of accounting and reporting for all proprietary funds?

A

Income determination

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6
Q

The primary emphasis in accounting and reporting for governmental funds is on:

A

“flow of current financial resources” focus which measure sources, uses, and balances of current financial resources

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7
Q

When does modified accrual basis of accounting recognize revenue?

A

Available and measureable

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8
Q

When does full accrual basis of accounting recognize revenue?

A

In the accounting period in which they are earned

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9
Q

Compensated absence liability should be calculated based upon the pay and salary in effect at…

A

BS date

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10
Q

What are the governmental funds?

A 
GRaSPP
G: General
R: Special Revenue
S: Debt Service
P: Capital Projects
P: Permanent
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11
Q

What are the proprietary Funds?

A

SE
S: Internal Service
E: Enterprise

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12
Q

What are the Fiduciary Funds?

A 
PAPI
P: Pension Trust
A: Agency
P: Private Purpose
I: Investment Trust
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13
Q

What are restricted fund balances?

A

Represent resources whose use has been limited by external sources such as creditors, contributors, other govts, laws, constitutional provisions or enabling legistration

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14
Q

What are non-spendable funds?

A

Represent resources in a form that cannot be spent (e.g. inventories and prepaid expenditures) or are legally or contractually required to remain whole (e.g permanent fund principle)

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15
Q

What are committed fund balances?

A

Represent resources that can only be used for specific purposes pursuant to constraints imposed by formal action of the govt’s highest level of decision making authority

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16
Q

What are assigned fund balances?

A

Are constrained by the govt’s intent to be used for a specific purpose, but are neither restricted or committed.

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17
Q

Unassigned Fund balance is the residual classification for what fund

A

General fund

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18
Q

If expenditures incurred for a specific purpose exceed the amount restricted, committed or assigned for those purpose, what may be necessary?

A

Report a negative unassigned fund balance

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19
Q

Debt Service Fund resources that are subject to the terms and conditions of a bond indenture would be classified w/n fund balance as:

A

Restricted

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20
Q

What are permanent funds used for?

A

To report resources that are legally restricted to the extent income, and not principal, may be used for purpose supporting the reporting govt’s programs for the benefit of the public

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21
Q

What is the paramount objective of financial reporting by state and local govt

A

Accountability

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22
Q

J/E for purchase order under modified accrual accounting?

A

DR: Encumbrance
CR: Budgetary Control

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23
Q

J/E for general fund salaries to the fire department

A

DR: Expenditures- Sal & Wages
CR: Sal Payable

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24
Q

How should budgetary comparisons be presented-basis of accounting?

A

In the same basis of accounting as the adopted budget

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25
Q

J/E for property tax being levied

A

DR: Prop Tax Receiv
CR: Allowance for uncollectible prop tax
CR: Revenue

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26
Q

J/E for when the encumbrance account is decreased

A

DR: Budgetary Control
CR: Encumbrance

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27
Q

J/E for when appropriations are recorded

A

DR: Fund Balance
CR: Appropriations

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28
Q

J/E when Budget is recorded

A

DR: Est Rev
CR: Appropriations
CR: Fund Balance

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29
Q

The expenditure element “sal and wages” is an example of which type of classification?

A

Object

  • Most specific classification = chart of accounts
  • Expenditures of govt’l resources should be classified by object classes, according to the type of items purchased or services rendered.
30
Q

How should general fixed assets be accounted for in the general fund?

A

Expenditure

J/E
DR: Expenditure
CR: Vouchers Payable

31
Q

J/E To record budget

A

DR: Est Rev
CR: Appropriations
CR: Budgetary Control

32
Q

How are interfund transfers and proceeds of debt issue classified?

A

Estimated Other financing sources

33
Q

J/E when supplies and invoice are received for governmental funds

A

DR: Budgetary Control (org amt)
CR: Encumbrances (org amt)
DR: Expenditures (actual amt)
CR: Vouchers Payable (actual amt)

34
Q

How are encumbrances outstanding at year-end in a state’s general fund reported as?

A

Fund Balance Commitment in the general fund

35
Q

What types of accounts is it inappropriate to record depreciation expense?

A

governmental funds

36
Q

What is an exchange transaction for govt’l units?

A

Is a reciprocal transfer in which each party receives and sacrifices something of approx. equal value

37
Q

What is a non-exchange transaction for govt’l units?

A

Involves giving/receiving value without receiving/giving equal value in return

38
Q

J/E to record prop tax levy with uncollectibles

A

DR: Prop Tax Receive
CR: Est Uncollect
CR: Prop Tax Rev

39
Q

What is the purchase method accounting for inventory under MAA?

A

Records additions to inventory as an expenditure and then establishes inventory bal and related non-spendable fund balance amts based on physical counts and valuations at year end.

40
Q

Govt-Wide Statement of Net Position Equals

A

Assets and deferred outflows of resources minus liabilities and deferred inflows of resources = net position

41
Q

J/E for assets associated with unavailable revenues

A

DR: AR
CR: Deferred inflow of resources

42
Q

Govt’l funds presentation of financial position equation

A

Assets and deferred outflows of resources equals liabilities and deferred inflows of resources plus fund balance

43
Q

How will a derivative qualify for a hedge accounting treatment?

A

If it is effective

44
Q

How are changes in a government’s pension liability that result from changes in actuarial assumptions are accounted for?

A

Deferred outflows and deferred inflows

45
Q

How are property taxes collected in advance of the year in which they are levied accounted for (governmental funds)

A

Deferred inflows of resources

46
Q

Which govt’l fund would a special tax levy to retire and pay interest on general obligation bonds

A

Debt Service

47
Q

How should capital assets donated to a governmental unit be recorded at

A

Estimated FV when received

48
Q

How would proceeds from general obligation bond issue be reported as?

A

Other Financing sources

49
Q

What is special revenue funds?

A

Account for the proceeds of specific revenue sources (other than permanent funds or for major capital projects) that are legally restricted or committed to re expenditures for specific purposes

50
Q

What is the debt service fund account for?

A

Accounts for the accumulation of resources for, and the payment of, general long-term liability principal and interest.

51
Q

What are permanent fund?

A

Are used to account for principal that is restricted and may not be expended (earnings may be used for purposes that benefit the public

52
Q

What is a major exception to the general rule of expenditure accrual for govt’l funds under MAA

A

Is the treatment of interest and principal payments for long-term debt.

53
Q

What is the term used to identify the equity section in proprietary funds?

A

“Net Position”

54
Q

J/E in internal service fund for the billings for transportation services provided to other govt;l units

A

DR: Due from other funds
CR: Operating Revs

55
Q

The estimated total current cost of Municipal Solid Waste Landfill Enterprise fund closure and post-closure care, should include

A
  1. Cost of a final cover to be applied to the landfill

2. cost of equipment to be installed to monitor methane gas buildup

56
Q

Under PF, what is included in cash flows from capital and related financing activities

A

Proceeds from capital debt, capital contributions, purchases of capital assets, principal paid on capital debt, interest paid on capital debt

57
Q

What is an enterprise fund used for?

A

To account for the provision of goods and services that are financed mainly by user charges.

58
Q

What PF are required to present a statement of CF

A

ALL of them

59
Q

How should shared revenues received by a PF be recorded?

A

Non-operating

60
Q

J/E for PF Internal Service Fund billing for services to other funds

A

DR: Due from other Funds
CR: Operating Revenues Control

61
Q

Does due from other funds affect an internal service fund’s change in net position?

A

No - Due from other funds appears on the BS. They are not a component of changes in net position

62
Q

What is an enterprise fund?

A

It accounts for a government’s for-profit type operations, which provide goods or services to the general public.

63
Q

What is an internal service fund?

A

Accounts for the providing of goods or services by one department to other departments on a cost-reimbursement basis. Municipal motor pools are a good example of internal service funds.

64
Q

Are both Govt’l Funds and PF affected by interfund transfers

A

Yes. Govt’l Funds -these are recorded as other financing sources rather than revs(exp).

65
Q

J/E for Taxes and fees collected by the agency fund

A

DR: Cash
CR: Due to other govt (taxes)
CR: Due to other funds (fees)

66
Q

Private Purpose Fund

A

is the designated fund for reporting all other trust arrangements under which principal and income are for the benefit of one of the following

67
Q

How are employer contribution additions to a governmental pension fund recorded?

A

As expenditures and expenses in the appropriate fund FS. The annual required contribution, not the benefits paid or the unfunded actuarial liability, is the amount of the expense.

68
Q

Dual objectives of govt’l accounting ?

A

Objectivity and Accountability

69
Q

Fund Structure

A

GF, PF, FF

70
Q

What are sources of Governmental Resources?

Revenue
Other Financing Sources

A

Revenue:
Taxes - Income & Sales
Taxes - Property & Real estate
Fines & Penalties

Other Financing Sources:
Debt Proceeds (bonds & notes)
Interfund Transfers

71
Q

Property Tax J/Es

~Property Tax levied
~Collection of Property Taxes
~Reclassify receiv to deliquent
~Reclassify current allowance for uncollectible

A

Property Taxes Levied:
DR: Real property taxs receivable (current)
CR: Revenues (property taxes)
CR: Allowance for uncollectible taxes receivable (current)

Collection of Property taxes:
DR: Cash
CR: Real property taxes receivable - current

J/E to reclassify receivables to delinquent:
DR: Property taxes receivable - deliquent
CR: Property Taxes Receivable - current

J/E to reclassify curr allowance for uncollectible
DR: Revenues – prop taxes
DR: Allowance for uncollect -current
CR: Allow for uncoll taxes - deliquient

72
Q

J/E to book an encumbrance

J/E to reverse estimated encumbrance

J/E to record actual expenditure

J/E for outstanding POs

A

DR: Encumbrance
CR: Budgetary Control

DR: Budgetary Control
CR: Encumbrance

DR: Expenditures
CR: Vouchers Payable (or cash)

DR: Unassigned fund bal
CR: Fund fal commities

FAR OVERALL (18 decks)

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