F8

Question 1

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

Answer 1

Current financial resources measurement focus and financial position focus
- Focuses on measuring the flow of current financial resources and the resulting financial position

• Statement of Revenues and Expenditures –> Shows resources received and consumed during the period
• B/S shows current financial resources and current obligations

Question 2

The revenues control account for a gov’t unit increase when:

Answer 2

Property taxes are levied

Property taxes receivable (DR)
Allowance for uncollectible prop. tax (CR)
Revenues (CR)

Question 3

What is the J/E for when budgets are recorded?

Answer 3

Estimated revenues (DR)
Appropriations (CR) 
Budgetary Control (CR)

This is part of the budgetary control account, revenue control account is unaffected

Question 4

What is the J/E for when encumbrances are decreased?

Answer 4

Budgetary Control (DR)
Encumbrances (CR)

Question 5

What is the J/E for when appropriations are made (increased)?

Answer 5

Budgetary Control (DR)
Appropriations (CR)

Question 6

What are the proprietary funds and what is their measurement focus?

Answer 6

SE –> Internal Service Funds and Enterprise Funds

Full accrual accounting, economic resources focus

Question 7

Enterprise Fund

Answer 7

Proprietary Fund

• Used to account for operations financed and operated in a similar manner to a private business enterprise.
• Used for governmental facilities and services that are supposed to be >50% self-supported by user charges/fees

(Something that is operated by the government even though it’s run like a business)

Question 8

Special Revenue Fund

Answer 8

Governmental Fund (GRaSPP)

• Used to account for revenues from specific taxes or other earmarked sources designated to finance particular activities of the gov’t

(Revenue from specific taxes or other sources that you use for certain purposes)

Question 9

General Fund

Answer 9

Governmental Fund

• “Catch All” or “Five Star General” Fund
• Accounts for ordinary operations of a government unit that are financed from general taxes and general revenue

Question 10

Internal Service Fund

Answer 10

Proprietary Fund (But, governmental activities)

• Accounts for goods/services provided by a department to other departments/agencies of a government unit OR to other government units… Charge fees to generate revenue

Question 11

What are the components of the Basic Financial Statements defined by GASB

Answer 11

1st: Managements Discussion and Analysis (MD&A)

2nd: Government-wide F/S’s
- Statement of Net Position
- Statement of Activities

3rd: Fund F/S (major funds shown individually, non-major funds shown in total)
- Governmental Funds
B/S
Statement of Activities

• Proprietary Funds
  Statement of Net
  Statement of Revenues, Expenses, and Changes in Fund Net Position (or “Fund Equity”)
  Statement of Cash Flows
• Fiduciary Funds
  Statement of Fiduciary Net Position
  Statement of Changes in Fiduciary Net Position

Fourth: Notes to F/S
Fifth: Required Supplementary Info
Sixth: Other Supplementary Info optional)

***Reconciliation of gov’t fund F/S to Government-wide F/S must be shown on either the face of the F/S’s or the accompanying schedules