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FAR > F8 Flashcards > Flashcards

F8 Flashcards

1
Q

What does fund accounting enable?

A

Service and mission-driven organizations to monitor compliance with spending purposes (legal restrictions), spending limits (budget and financial control), and other fiscal accountability objectives

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2
Q

What is the only find that should have a positive unassigned fund balance?

A

General fund

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3
Q

Why are separate fund financial statements presented for governmental and proprietary funds?

A

To report additional detailed information about primary government

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4
Q

What qualitative characteristic is most difficult for government entities to report?

A

Relevance

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5
Q

What are the two determinants of measurement focus of governmental type funds?

A

Current financial resources; financial position

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6
Q

What is the fund structure for governmental funds?

A 
GRaSPP:
General fund
Special Revenue fund
Debt Service fund
Capital Projects fund
Permanent fund
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7
Q

What is the fund structure for Proprietary funds?

A

SE:
Internal Service Fund
Enterprise fund

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8
Q

What is the fund structure for Fiduciary funds?

A 
PAPI:
Pension (and other employee benefit) trust fund
Agency trust fund
Private purpose trust fund
Investment trust fund
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9
Q

What is the measurement focus for governmental proprietary and fiduciary funds?

A

Current financial resources; economic resources; economic resources

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10
Q

How are fund resources segregated?

A

For the purpose of carrying on specific activities or attaining certain objectives

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11
Q

What is accounting and reporting for fiduciary and proprietary funds similar to?

A

Accounting and reporting for business enterprises

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12
Q

What type of accounting do governmental, proprietary, and fiduciary funds use?

A

Modified accrual; accrual; accrual

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13
Q

What are the restrictions on governmental fund balances?

A 
NU CAR:
Non-spendable 
Restricted 
Committed 
Assigned 
Unassigned
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14
Q

Expenditures incurred for specific purposes exceed amounts restricted, committed, or assigned to these purposes, how do we report?

A

Negative unassigned fund balance

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15
Q

How are permanent funds used?

A

Used to report resources that are legally restricted to the extent income, and not principal, maybe used for purposes supporting the reporting governments programs

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16
Q

What is the measurement focus and basis of accounting for governmental fund financial statements and government-wide financial statements

A

Current financial resources, modified accrual; economic resources, accrual

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17
Q

What do imposed nonexchange revenues consist of?

A

Real estate taxes and fines and penalties

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18
Q

Under modified accrual accounting, when is revenue recognized?

A

When measurable and available

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19
Q

Under modified accrual accounting, what is the journal entry for issuance of commitment to purchase?

A

Debit: encumbrance
credit: budgetary control

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20
Q

Under modified accrual accounting, what is the journal entry for an expenditure?

A

Debit: expenditure
credit: vouchers payable or cash

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21
Q

What is adopting a balanced budget supportive of?

A

Interperiod equity as a financial reporting objective of a governmental unit

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22
Q

How are budgetary comparisons presented?

A

Same basis of accounting as adopted budget

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23
Q

What is the journal entry for recording taxes?

A

Debit: taxes receivable

credit: allowance from collectible taxes
credit: revenues

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24
Q

What is the journal entry to record the revenue budget?

A

Debit: estimated revenue control
credit: budgetary control

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25
Q

What are the classifications of governmental expenditures?

A

Function/program, organizational unit, activity, character, object classes

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26
Q

Differentiate between the alternatives for expense recognition

A

Purchase method: expenditure current assets when purchased, reverse for items not used during the current period; consumption method: set up as current assets when purchased, expenditure items as consumed

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27
Q

What is the journal entry to record budget with appropriations an estimated revenues?

A

Debit: estimated revenues

credit: appropriations
credit: budgetary control

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28
Q

How are interfund transfers and death proceeds classified?

A

Other financing sources

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29
Q

What is the journal entry for when encumbrances are received?

A

Debit: budgetary control

credit: encumbrance
debit: expenditures (actual)
credit: vouchers payable

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30
Q

What goes into the governmental funds for expenditures (revenue)?

A

Amount paid (collected) and current liabilities (assets)

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31
Q

How is Fund Balance calculated?

A

Total assets - total liabilities

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32
Q

How is the unassigned portion of fund balance calculated?

A

Total fun balance minus assigned (budgetary control) fund balance

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33
Q

What is the equation for available appropriations?

A

Budget: appropriations - activity: expenditures - encumbrances = available appropriations

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34
Q

Why is depreciation not recorded in governmental funds?

A

Focus is on the flow of financial resources and appreciation does not reflect use of financial resources

35
Q

What is a non-exchange transaction?

A

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

36
Q

How are transfers from other funds classified?

A

Other financing sources

37
Q

How do you fiduciary funds present their statement of financial position?

A

Net position format: (assets + different outflows) - (liabilities + different inflows)

38
Q

What is the journal entry for assets associated with unavailable revenues?

A

Debit: accounts receivable
credit: deferred inflows of resources

39
Q

How do governmental funds present their statement of financial position?

A

(assets + different outflows) - (liabilities + different inflows) + fund balance

40
Q

What do debt service funds account for?

A

Accumulation of resources for, and payment of, general long-term debt principal and interest

41
Q

How are assets donated to a governmental unit recorded?

A

At estimated fair value when received

42
Q

Where is special assessment debt maturing in five years to be repaid from general resources of the government reported?

A

Government wide statement on net position

43
Q

How do you governmental funds report interfund transfers?

A

Other financing sources

44
Q

What are permanent funds used to account for?

A

Principal that is restricted and may not be expanded and earnings that may be used for purposes that benefit the public

45
Q

Under the modified accrual basis, how are principal and interest on long-term debt recorded?

A

When they become due and payable, not when they accrue

46
Q

How is debt to be repaid from general resources recorded?

A

General long-term liability and governmental activities column of government-wide statement of net position

47
Q

How is property retained by the government treated?

A

Capitalized at the lower of cost or market value

48
Q

When our interest expenditures recorded?

A

When legally payable per the bond agreement

49
Q

What type of expenditures are underwriter fees and debt issue costs?

A

Debt service expenditures

50
Q

What is the exception to the modified accrual basis of accounting for and how is it recorded?

A

Interest and principal and long-term debt a recorded when they become due and payable, not when they accrue

51
Q

Where are transfers in/out placed

A

Other financing uses/sources

52
Q

What are enterprise funds used to account for?

A

Provision of goods and services to the general public financed mainly by user charges

53
Q

How are shared revenues received by a proprietary fund recorded?

A

Non-operating revenue

54
Q

What is the journal entry for an internal service find billing?

A

Debit: due from other funds
credit: operating revenues control

55
Q

How do enterprise funds treat their own fixed assets?

A

Record and depreciate consistent with economic resources measurement focus and accrual accounting

56
Q

With government operations who’s costs are primarily supported by outside user charges, how do we classify these?

A

Enterprise funds

57
Q

How are internal designations in the enterprise fund classified?

A

Unrestricted

58
Q

What does the internal service fund account for?

A

Providing of goods/services by one department to other departments on a cost reimbursement basis

59
Q

How are capital and non-capital financing activities reported on the statement of cash flow?

A

Separately

60
Q

How are debt service transactions of a special assessment issue with the government is not obligated in any manner reported?

A

Agency fund

61
Q

Which funds are used to account for assets held by governmental unit acting as an agent for another governmental unit?

A

Agency funds

62
Q

Which fund accounts for unrestricted grants?

A

General fund

63
Q

Which financials are required for an investment trust fund?

A

Statement of fiduciary net position and statement of changes in fiduciary net position

64
Q

What is the basis for defining the financial reporting entity?

A

Accountability perspective

65
Q

What do fiduciary and proprietary funds do with their debt?

A

Carry it

66
Q

How are governmental capital leases treated?

A

As purchase of fixed assets with related debt

67
Q

What is the journal entry for closing budgetary revenue accounts?

A

Debit: appropriations control
credit: revenues control

68
Q

When a purchase order is approved, what happens to the budgetary control account?

A

Increases

69
Q

What do government pension plans disclose in their financial statements?

A

Employer/employee obligations to contribute to the plan, statement about plan, and employee eligibility requirements

70
Q

What funds are statements of cash flows issued for?

A

Proprietary, not governmental or fiduciary

71
Q

When our revenues recognized under the modified accrual basis of accounting?

A

When measurable and available

72
Q

What is the journal entry to formally integrate a revenue budget?

A

Debit: estimated revenue
Credit: appropriations control
Credit: estimated transfer to debt service fund
Credit: budgetary control

73
Q

What is the journal entry to record a budgeted expenditure?

A

Debit: expenditures control
Credit: vouchers payable

74
Q

What fund accounts for the restricted principal and interest payments?

A

Debt service fund

75
Q

What are the two requirements to be accounted for as an enterprise fund?

A

User charges cover the costs of general public services and net income information is provided for an activity

76
Q

What is the only amount included in a general funds encumbrance account?

A

Outstanding purchase order amounts

77
Q

Under modified accrual accounting, when does interest accrue?

A

Only when legally due

78
Q

How was that used to finance capital projects recorded?

A

Other financing sources

79
Q

Where is work-in-progress reported in governmental financials?

A

Only government wide financial statements because all other capital project funds are closed out at year-end

80
Q

What year are grant revenues recognized?

A

In the year in which the monies are used

81
Q

How are outstanding encumbrances at year and reported?

A

Component of committed or assigned fund balance

82
Q

What is the journal entry for payments of principal and interest on operating funds?

A

Debit: expenditure control
Credit: cash

83
Q

How long must governmental financial statements display data as required supplementary information?

A

Minimum of 10 years or however long the governmental unit has been in existence

84
Q

How is a bond anticipation note classified?

A

Current liability if entity does not have the ability to refinance as a non-current application

FAR (10 decks)

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