F8 Flashcards Flashcards by Josh Hill

What does fund accounting enable?

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

How well did you know this?

Not at all

Perfectly

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

General fund

How well did you know this?

Not at all

Perfectly

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

To report additional detailed information about primary government

How well did you know this?

Not at all

Perfectly

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

Relevance

How well did you know this?

Not at all

Perfectly

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

Current financial resources; financial position

How well did you know this?

Not at all

Perfectly

What is the fund structure for governmental funds?

GRaSPP:
General fund
Special Revenue fund
Debt Service fund
Capital Projects fund
Permanent fund

How well did you know this?

Not at all

Perfectly

What is the fund structure for Proprietary funds?

SE:
Internal Service Fund
Enterprise fund

How well did you know this?

Not at all

Perfectly

What is the fund structure for Fiduciary funds?

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

How well did you know this?

Not at all

Perfectly

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

Current financial resources; economic resources; economic resources

How well did you know this?

Not at all

Perfectly

How are fund resources segregated?

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

How well did you know this?

Not at all

Perfectly

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

Accounting and reporting for business enterprises

How well did you know this?

Not at all

Perfectly

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

Modified accrual; accrual; accrual

How well did you know this?

Not at all

Perfectly

What are the restrictions on governmental fund balances?

NU CAR:
Non-spendable 
Restricted 
Committed 
Assigned 
Unassigned

How well did you know this?

Not at all

Perfectly

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

Negative unassigned fund balance

How well did you know this?

Not at all

Perfectly

How are permanent funds used?

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

How well did you know this?

Not at all

Perfectly

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

Current financial resources, modified accrual; economic resources, accrual

How well did you know this?

Not at all

Perfectly

What do imposed nonexchange revenues consist of?

Real estate taxes and fines and penalties

How well did you know this?

Not at all

Perfectly

Under modified accrual accounting, when is revenue recognized?

When measurable and available

How well did you know this?

Not at all

Perfectly

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

Debit: encumbrance
credit: budgetary control

How well did you know this?

Not at all

Perfectly

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

Debit: expenditure
credit: vouchers payable or cash

How well did you know this?

Not at all

Perfectly

What is adopting a balanced budget supportive of?

Interperiod equity as a financial reporting objective of a governmental unit

How well did you know this?

Not at all

Perfectly

How are budgetary comparisons presented?

Same basis of accounting as adopted budget

How well did you know this?

Not at all

Perfectly

What is the journal entry for recording taxes?

Debit: taxes receivable

credit: allowance from collectible taxes
credit: revenues

How well did you know this?

Not at all

Perfectly

What is the journal entry to record the revenue budget?

Debit: estimated revenue control
credit: budgetary control

How well did you know this?

Not at all

Perfectly

What are the classifications of governmental expenditures?

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

Differentiate between the alternatives for expense recognition

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

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

Debit: estimated revenues credit: appropriations credit: budgetary control

How are interfund transfers and death proceeds classified?

Other financing sources

What is the journal entry for when encumbrances are received?

Debit: budgetary control credit: encumbrance debit: expenditures (actual) credit: vouchers payable

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

Amount paid (collected) and current liabilities (assets)

How is Fund Balance calculated?

Total assets - total liabilities

How is the unassigned portion of fund balance calculated?

Total fun balance minus assigned (budgetary control) fund balance

What is the equation for available appropriations?

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

Why is depreciation not recorded in governmental funds?

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

What is a non-exchange transaction?

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

How are transfers from other funds classified?

Other financing sources

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

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

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

Debit: accounts receivable credit: deferred inflows of resources

How do governmental funds present their statement of financial position?

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

What do debt service funds account for?

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

How are assets donated to a governmental unit recorded?

At estimated fair value when received

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

Government wide statement on net position

How do you governmental funds report interfund transfers?

Other financing sources

What are permanent funds used to account for?

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

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

When they become due and payable, not when they accrue

How is debt to be repaid from general resources recorded?

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

How is property retained by the government treated?

Capitalized at the lower of cost or market value

When our interest expenditures recorded?

When legally payable per the bond agreement

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

Debt service expenditures

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

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

Where are transfers in/out placed

Other financing uses/sources

What are enterprise funds used to account for?

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

How are shared revenues received by a proprietary fund recorded?

Non-operating revenue

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

Debit: due from other funds credit: operating revenues control

How do enterprise funds treat their own fixed assets?

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

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

Enterprise funds

How are internal designations in the enterprise fund classified?

Unrestricted

What does the internal service fund account for?

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

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

Separately

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

Agency fund

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

Agency funds

Which fund accounts for unrestricted grants?

General fund

Which financials are required for an investment trust fund?

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

What is the basis for defining the financial reporting entity?

Accountability perspective

What do fiduciary and proprietary funds do with their debt?

Carry it

How are governmental capital leases treated?

As purchase of fixed assets with related debt

What is the journal entry for closing budgetary revenue accounts?

Debit: appropriations control credit: revenues control

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

Increases

What do government pension plans disclose in their financial statements?

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

What funds are statements of cash flows issued for?

Proprietary, not governmental or fiduciary

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

When measurable and available

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

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

What is the journal entry to record a budgeted expenditure?

Debit: expenditures control Credit: vouchers payable

What fund accounts for the restricted principal and interest payments?

Debt service fund

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

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

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

Outstanding purchase order amounts

Under modified accrual accounting, when does interest accrue?

Only when legally due

How was that used to finance capital projects recorded?

Other financing sources

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

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

What year are grant revenues recognized?

In the year in which the monies are used

How are outstanding encumbrances at year and reported?

Component of committed or assigned fund balance

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

Debit: expenditure control Credit: cash

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

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

How is a bond anticipation note classified?

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